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Next Week In The Market

Video: Next Week in the Market 9th - 13th Dec 2013

Next week's reporting highlights include TUI Travel, Stagecoach and Wood Group

McNeill profile image

by
Douglas McNeill

in Next Week In The Market

06.12.2013

Next week’s reporting highlights include: 

  •  TUI Travel – is sales growth in ‘online accommodation’ bringing profit growth at last?
  •  Stagecoach – is sales growth in America bringing profit growth at last?
  •  Wood Group – is order intake holding up despite caution in the oil business?

 

Tuesday

Full-year results from TUI Travel, Europe’s largest tour operator.  The company last updated the market in September, just before the end of its financial year, when it said that profits for the year would be higher than previously thought and that about one-third of its packages for the current winter season had already been sold; the share price rose 4% on the statement and has held on to that gain since.  Market expectations are for dividend growth of 7% for the year now underway, predicated on modest sales growth, a slightly improved profit margin, and a slightly lower interest charge.  Attention next week will focus on early booking levels for next summer and whether the ‘online accommodation’ division is beginning to convert sales growth into profit growth; the share price level implies good progress on both fronts.

Wednesday

Stagecoach, Britain’s largest bus operator by turnover, announces its half year results.  It last updated the market on 29 October, when it said that current trading was good and prospects positive; the share price rose about 8% and has continued to outperform.  The dividend is expected to increase by 8% this year, supported by c. 6% revenue growth and by solid cash flow from the UK bus business.  The results will include new pension accounting standards though since they don’t affect on cash flow, investors may focus on the progress of ‘Megabus’ in North America, which is expected to show a significant improvement in profitability this year.  The share price level suggests confidence in continued growth across the group. 

Thursday

Wood Group gives a trading update for the year to 31 December 2013.  At the last update in October, it confirmed the guidance given at the half-year results; the share price was unmoved.  Market expectations are for the dividend to increase by 24% this year, far outpacing growth in both revenue and profit.  Attention on Thursday may focus on Wood Group Engineering, which accounts for the majority of profits and where the rate of growth has slowed; investors are keen to hear some guidance for 2014, but the share price level suggests confidence that the division’s order intake is holding up well – despite pressure on oil & gas industry capital expenditure budgets. 

 

Next Week in the Market is produced by Charles Stanley's Private Client Research Team and the video is presented by Douglas McNeill, Investment Director who can be followed on Twitter on @DAMcNeill

 

 

 

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