Rolls-Royce looks set for its sixth profit warning in two years
The Week Ahead
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Your support makes all the difference.Rolls-Royce looks odds-on for its sixth profit warning in two years when it posts annual results on Friday – which could prompt chief executive Warren East to slash the dividend.
The consensus for analysts’ forecasts suggests a 30 per cent cut to the payout for 2015 and 2016, but Deutsche Bank argued that axing it entirely for a short period “may be the most prudent move”.
Panmure Gordon’s Sanjay Jha went as far to suggest that the aircraft engine maker should raise £1bn to bolster the balance sheet.
“We propose that simultaneously suspending the dividend and raising £1bn of equity next Friday could provide a floor to the share price,” he said.
Today, gold producer Randgold Resources, the FTSE 100’s best performer in 2016, releases its annual results. Its shares have soared amid the market turmoil as gold has regained its safe-haven appeal.
First Choice and Thomson owner Tui reveals its first-quarter results tomorrow after a tough time for tour operators in the wake of terrorist attacks in Paris and Tunisia. Broker Deutsche, which expects revenue growth of 3 per cent, said: “The impact should be mitigated to some extent by higher uptake of holidays in other regions, especially in Western Europe.”
On Wednesday, iPhone chipmaker Arm Holdings reveals it annual results. Last month Apple fell short of revenue expectations as iPhone sales disappointed.
Tullow Oil’s full-year figures on the same day will lay bare the extent of the oil producer’s woes, while there are trading updates from housebuilder Bellway and property investor Great Portland Estates.
Credit Suisse analysts believe the first-quarter statement on Thursday from Imperial Brands – formerly Imperial Tobacco – will reveal a 3 per cent fall in cigarette volumes but a 6 per cent rise in sales to £1.58bn.
Rio Tinto’s full-year results on Thursday will provide an insight into the financial impact of the commodities crisis on the Anglo-Aussie miner.Elsewhere on Thursday, a trading update is due from pub operator Enterprise Inns, while annual results are scheduled for drug maker Shire, fresh from its £22bn purchase of Baxalta. of ) deal for US rare disease firm Baxalta.
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