Weekly Outlook: Telecom Plus and EasyJet results

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22 November 2024

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Monday 25 November

German Ifo economic sentiment survey
Belgian Courbe Synthetique business sentiment survey
In Asia, quarterly results from L’Occitane
In Canada, quarterly results from Alimentation Couche-Tard
In the US, quarterly results from Agilent, Zoom Video Communications and Bath and Body Works

Tuesday 26 November

Full-year results from Compass, Renew, AO World and Topps Tiles
First-half results from Londonmetric Property, Halfords, Brickability, VP, IG Design, Sosandar, Intercede, Helical and Supreme
Quarterly results or trading updates from Intertek and Safestore
British Retail Consortium UK shop price index
Japanese core inflation
US S&P / Case-Shiller house price index
US Conference Board consumer confidence survey
US new homes sales
In Asia, quarterly results from H World
In the US, quarterly results from Analog Devices, Dell, CrowdStrike, Autodesk, HP, BestBuy, JM Smucker, Abercrombie & Fitch, Macy’s, Nordstrom, Urban Outfitters and Manchester United
Telecom Plus first-half results

Telecom Plus will share its first-half results on Tuesday, offering 2.6 million services to its customers at the end of October.

Share price for the company has not seen much movement in the past year, and continues to sit near a third below its highs from 2022.

Russ Mould, AJ Bell investment director, Danni Hewson, AJ Bell head of financial analysis, and Dan Coatsworth, AJ Bell investment analyst, said: “Ofgem now sets energy price caps quarterly and, when it does so, the regulator requires suppliers to fully hedge the cost of customers’ projected energy use (to stop a repeat of the multiple failures that characterised 2021 and 2022).

“That leaves energy suppliers potentially exposed to hefty losses, should customers churn to a rival or if the spot energy price falls below the level assumed in the price cap. That said, Utility Warehouse’s long-term buying and sourcing relationship with E.ON still helps here and that deal stretches out to December 2033.”

In October’s trading update, customers grew by an annualised rate of 13%, while chief executive Stuart Burnett put in guidance of adjusted pre-tax profit for the year of £124m to £128m. Dividend for the year as a whole is expected to be 86p per share, compared to last year’s 83p.

Wednesday 27 November

First-half results from Johnson Matthey, Pennon and Pets At Home
Interest rate decision from the Reserve Bank of New Zealand
US Q3 GDP growth (second estimate)
US durable goods orders
US initial weekly unemployment claims
US trade balance
US Personal Consumption Expenditure index
US pending homes sales
US oil inventories
In the US, quarterly results from Splunk
EasyJet full-year results

EasyJet will release its last set of full-year results under CEO Johan Lundgren on 27 November, with Kenton Jarvis taking over the position in January.

In these results, markets anticipate a pre-tax profit figure of £595m, up from £455m last year. Beyond the headline figure, analysts will look to capacity (expected to grow by 8%), load factor, revenue per seat, cost per seat and the performance of EasyJet Holidays. Capital expenditure is expected to hit £1.3bn for this year’s results, and is forecasted to increase next year to near £1.9bn.

“EasyJet is primed to take delivery of 16 Airbus aircraft in 2024 and then 9, 25 and 34 in 2025, 2026 and 2027, so any discussion of Airbus’ supply chain issues and whether they will affect this delivery schedule will be worthy of note,” Mould, Hewson, and Coatsworth said.

“Besides investing cash for growth, EasyJet is also returning some to shareholders. The company returned to the dividend list with a payment of 4.5p a share alongside its September 2023 results, after a hiatus of five years. For the year just ended, analysts are expecting 12p a share, with a further increase to 14.8p for the year to September 2025.”