FTSE 100 and FTSE 250 shares – what to expect on the stock market next week

Among those currently scheduled to release results next week:

  • We’ll see whether the post-pandemic borrowing boom continued when Experian reports
  • JD Wetherspoons needs to keep sales creeping higher in Q4 if it wants to break even at the full year
  • Heightened exposure to China raises some questions for Burberry

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Among those currently scheduled to release results next week:

No FTSE 350 Reporters

* Events on which we will be updating investors.

Experian – Laura Hoy, Equity Analyst

Experian’s been riding high on a post-pandemic borrowing boom and first quarter results should show more of the same. Revenue’s expected to jump more than 8% to £ 3.3bn and work on boosting margins over the past year means operating profits should jump at an even faster clip. This tells us little about what’s to come, though, as we march into an increasingly gloomy economic backdrop. Management commentary on what to expect, and whether revenue growth between 7% and 9% is still achievable, will be of interest.

The latest lending data shows credit card debt’s risen over 11% in the UK, suggesting as finances tighten the need for loans is on the rise. Experian’s position as a middleman between lenders and borrowers puts it in a potential sweet spot to capitalize on that trend. Not to mention the newly revamped consumer business will have a chance to shine with new tools to help people save money on bill repayments and new loans.

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JD Wetherspoon – Matt Britzman, Equity Analyst

With restrictions now firmly in the rear-view mirror, Wetherspoon’s has been able to improve sales, albeit slowly. Like-for-like sales in the last couple of weeks of the third quarter were slightly positive. We’ll find out in next week’s trading statement whether that has continued into the fourth quarter.

The main story will likely focus on inflation and the group’s raised prices already this year. In March, we heard cautious consumers hadn’t impacted trading. Given the cost-of-living crisis has evolved since then, it’ll be interesting to hear whether that trend has shifted at all.

From an operational standpoint, higher costs from labor, food and energy have already been called out as significant headwinds. We’ll be looking out for any indication as to how that’s being managed. Last we heard, the group expected to break even on profits for the full year with cost increases 1 or 2% below inflation.

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Burberry – Sophie Lund-Yates, Equity Analyst

Back at the full year mark, underlying revenue rose 23% to £ 2.8bn, which was 10% ahead of pre-pandemic levels. Analysts are expecting a 44.7% drop in the first quarter, which reflects ongoing uncertainty on consumer spending in China. Heightened by renewed lockdowns in recent months. The market has already reacted to this, with the valuation coming under pressure over the last few months. However, a worse than expected dip in revenues, or a shaky outlook statement could see further market reactions.

In fact, the outlook statement is something we’ll have a keen eye on. Burberry has more exposure to China than its peers – one third of the whole compared to a quarter for others. We think the situation in Asia is going to take some time to unwind, so it’s unlikely to be an immediate road to recovery for Burberry.

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A connected party of the author holds shares in Experian plc.

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