Direct Line

Can the insurer win back the market’s support after dividend fiasco?

Having paid out over £1.5 billion to shareholders in the last decade, including during the pandemic, Direct Line (DLG) was a well-liked and widely-owned stock.

However, after dropping a bombshell in January with the news it was pulling its dividend in order to rebuild its balance sheet, Direct Line has a mountain to climb to win back the market’s confidence this month.

With the shares nearly 25% below their early January level of 230p, investors will be hoping the worst is priced in when the company reports its full-year results on 13 March.

January’s warning was precipitated by a ‘perfect storm’ of higher weather-related property claims, more frequent and more costly motor-related claims and a sharp drop in the value of the firm’s property investment portfolio in the final quarter of 2022 after the disastrous ‘mini-Budget’. [IC]

Deliveroo

Expectations for the takeaways platform turn to profitable growth, not at any price

Investors have had their fill of growth at any price talk, now it’s time for food delivery platform Deliveroo (ROO) to show that this is not half-baked optimism. Core profit margin is expected to be higher than previous guidance, something to lift the spirits, yet there is a long way to go before the company is making anything like the big profits which have long been promised. Details will come alongside full year results on 16 March, but with the stock down 75% since summer 2021, the jury remains out. [SF]

FedEx

The deliveries and logistics firm is a good bellwether for the wider economy

Often seen as a good indicator of the health of the wider economy thanks to the breadth of its exposure across areas like transportation, logistics and e-commerce, delivery firm FedEx (FDX:NYSE) will be watched closely when it reports on 16 March.

The last two quarterly updates were Jekyll and Hyde with the company warning on profit and removing guidance in September before announcing better-than-expected second quarter numbers in December and restoring annual earnings guidance.

FedEx has steered for earnings per share between $13 to $14 for the 12 months to 31 May 2023. Based on the $6.40 reported in the first half this means earnings will have to accelerate in the second half to hit even the lower end of that total. [TS]

Adobe

Guidance and Figma news will drive the shares

It could be a tough day on 16 March for creative software giant Adobe Systems (ADBE:NASDAQ) as investors nervously eye first-quarter 2023 earnings, but it won’t be the reported figures moving the share price. Guidance for the rest of the year will power the market’s mood, that and any update on proposed acquisition Figma. The stock has been depressed for several weeks as doubts creep in that the US Department of Justice could block Adobe’s £20 billion purchase of the start-up. [SF]

UK UPDATES OVER THE NEXT 7 DAYS

HALF-YEARLY RESULTS

13 March: Nightcap

14 March: Litigation Capital Management, Eagle Eye Solutions, Close Brothers, Virgin Wines UK

16 March: Gelion

FULL-YEAR RESULTS

13 March: Direct Line Insurance, HGCapital Trust, Phoenix, MTI Wireless

14 March: Gresham Technologies, Midwich, Genuit, Yu Group

15 March:  Prudential, Keywords Studios, 4Imprint Group, Ferrexpo, Advanced Medical Solutions, Foresight Solar, Balfour Beatty, Marshalls.

16 March: Empiric Student Property, OSB, Bridgepoint, TI Fluid Systems, Rentokil Initial, Deliveroo, Gem Diamonds, Savills, Centamin, Restore, The Gym Group.

TRADING UPDATES

16 March: Investec, Halma

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

10 March: AIA, DocuSign

13 March: Getty Images

16 March: Adobe, Dollar General, FedEx

EUROPEAN UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

14 March: Volkswagen

15 March: BMW, EON, Inditex

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