By Oliver Brownlow
Monday 15 July
- Trading update from Robert Walters
- Rightmove UK house price index
- Chinese retail sales, industrial production and capital investment growth
- EU industrial production
- In Europe, quarterly results from Orkla
- In the US, quarterly results from Goldman Sachs and BlackRock
Tuesday 16 July
- First-half results from Ocado
- Trading updates from Intermediate Capital, B&M European Value Retail, Bloomsbury Publishing and McBride
- Chinese house price index
- German ZEW economic survey
- US retail sales
- US NAHB housebuilding industry survey
- In Europe, quarterly results from Richemont and NCC
- In the US, quarterly results from UnitedHealth, Bank of America, Morgan Stanley and Omnicom
Wednesday 17 July
- Full-year results from Renold
- Trading update from HVIVO
- UK inflation
- Chinese Q1 GDP growth
- EU inflation
- US building permits
- US housing starts
- US industrial production and capacity utilisation rates
- US Federal Reserve Beige Book
- US oil inventories
- In Australia, quarterly results from BHP
- In Europe, quarterly results from ASML, Assa Abloy and Svenska Handelsbanken
- In the US, quarterly results from Johnson & Johnson, CSX, US Bancorp, Las Vegas Sands, Citizens Financial, United Airlines, Alcoa and Bank OZK
Thursday 18 July
- Trading updates from SSE, Diploma, Dunelm, Kier and QinetiQ
- UK unemployment and job vacancies
- UK wage growth
- Interest rate decision from the European Central Bank
- US weekly initial unemployment claims
- In Asia, quarterly results from TSMC
- In Europe, quarterly results from ABB, Atlas Copco, Volvo, EQT, Publicis, Nokia, Volvo Car and SKF
- In the US, quarterly results from Abbott Labs, Blackstone, DR Horton, Tractor Supply, Domino’s Pizza, Interpublic, American Airlines and Alaska Airlines
- Netflix second quarter results
Netflix will share its second quarter results on Thursday, after shares accelerated to near $700 thanks to a set of strong quarterly reports.
The price has also been helped by obstacles for other streaming rivals, initiatives on pricing and shared passwords, and content that they have weathered the 2023 writers strikes, according to AJ Bell investment analyst Dan Coatsworth.
In April’s first quarter results, Netflix raised profit margin guidance from 24% to 25%, causing analysts to up the 2024 earnings per share forecast from $17.61 to $18.3.
“This is helping to drive the shares, although it also raises the bar of expectations and any disappointment may not be taken well by a stock that trades on nearly 38 times forward earnings for 2024 (and 31 times for 2025), compared to the 23 times multiple currently afforded to the S&P 500 index, according to research from Standard & Poor’s,” Coatsworth said.
The total subscriber base for Netflix is now just below 270m, far past its Q1 2023 numbers of 233m. The company expects to hit 16% revenue growth for the second quarter of 2024, with analysts predicting growth of $9.7bn in Q3, 15% higher than in 2023.
“Cashflow continues to blossom, with the result that net debt (before leases and content purchase obligations) is down to $7bn,” Coatsworth said.
“This cashflow also funds ongoing content and technological development, to cement Netflix’s competitive position, and also share buybacks, which some shareholders may see as an additional sweetener. Netflix bought back $2bn in stock in the first quarter, to add to the $6bn purchased in 2023.”
Friday 19 July
- First-half results from Bridgepoint
- GfK UK consumer confidence survey
- UK retail sales
- UK monthly government borrowing figures
- Chinese one- and five-year interest rates decision
- Japanese inflation
- In Europe, quarterly results from Schindler, Kone, Sandvik, Saab and Electrolux
- In the US, quarterly results from American Express, Schlumberger and Halliburton
- Burberry first-quarter trading update
Burberry will post its first-quarter trading update with shares down more than half over the past year, now at levels not seen for more than a decade.
Full year results in May revealed a one-third drop in operating profit after a 4% fall in sales.
“A weak recovery in the important Chinese market and broader concerns over luxury goods demand and so-called premiumisation strategies (and perhaps whether companies are starting to accidentally price the more aspirational customer out of the market) have a big role to play,” Coatsworth said.
“Those worries crystallised in a disappointing outlook statement alongside November’s interim results and then a full-blown profit warning alongside January’s third-quarter and Christmas trading update.”
Chief executive Jonathan Akeroyd targeted high single-digit percentage revenue growth, with a sales figure of £4bn being the ultimate aim, though this growth does not guarantee higher profits or cashflow, Coatsworth said.
Analysts expect sales to fall another 6% to £2.8billion for the year to next March, with full-year profit also expected to dip 30% to £299m.
Retail store sales are expected to drop 17% in the first quarter, with Asia dropping over 20% and the US expected to drop 16%.
“Analysts and shareholders will look in particular for updates on China, any signs of recovery among more aspirational (and less plutocratic) buyers in Europe and the USA, and any indication of improved wholesale business,” Coatsworth said.
“An extensive store refurbishment programme is underway, to lure back customers, while Burberry is also running cost efficiencies, the benefits of which are due to start supporting margins and profits from the second half of this fiscal year.”
