Earnings look ahead – Berkeley Group, Mulberry, Carillion

A look at company earnings next week.

Houses
Source: Bloomberg

Berkeley Group (first-half earnings 8 December)

Berkeley's position as a builder of luxury homes means that it has seen its demand take a hit in the wake of the EU referendum, as concerns over the attractiveness of London as a financial centre rose. However, those concerns seem to have taken a back seat, and the rally in the share price to new record highs in October reinforces the more positive outlook. At around 10.8 times earnings, the company’s valuation is not ambitious, and even though earnings are expected to weaken in the coming year, the relatively undemanding price-to-earnings (P/E) ratio suggests much of that is being factored in. In addition, the firm’s operating margin of 25.5% is much healthier than the 19.7% for its rivals.

A strong trend prevails here, as the shares hit a record high. The pullback to the 100-day simple moving average (SMA), currently £36.64, created a new higher low, so it looks like we will continue to see further gains. Areas of support to look for include the September high at £37.64, then £35.79 and £34.65. 

Mulberry (first-half earnings 6 December)

June saw the firm report a 21% rise in profits, to £7.5 million, while revenue rose 8% to £168.1 million. A recovery in performance in recent years has helped revive investor confidence in Mulberry, but it still has its work cut out for it trying to compete with the luxury brands.

Being a smaller, high-growth firm, it currently trades at 87.5 times forward earnings, versus a global average of just 25.4. However, given that the two-year average is 93.5, the shares are slightly cheaper relative to recent history.

Carillion (trading statement 6 December)

Carillion is one of the major stories of the year, with the decline in the company’s fortunes and share price providing a cautionary tale. With a trading statement looming, what can be said to help lift the shares from their current doldrums.

A rescuer could cause the shares to shoot higher, but at present the financial conditions look dire, while trading conditions for the firm and the broader sector do not look encouraging. While it may trade at just 0.8 times earnings, common knowledge suggests P/Es of 0-5 are warning signs, not indications of cheapness.

Denne informasjonen er utarbeidet av IG, forretningsnavnet til IG Markets Limited. I tillegg til disclaimeren nedenfor, inneholder ikke denne siden oversikt over kurser, eller tilbud om, eller oppfordring til, en transaksjon i noe finansielt instrument. IG påtar seg intet ansvar for handlinger basert på disse kommentarene og for eventuelle konsekvenser som et resultat av dette. Ingen garanti gis for nøyaktigheten eller fullstendigheten av denne informasjonen. Personer som handler ut i fra denne informasjonen gjør det på egen risiko. Forskning gitt her tar ikke hensyn til spesifikke investeringsmål, finansiell situasjon og behov som angår den enkelte person som mottar dette. Denne informasjonen er ikke utarbeidet i samsvar med regelverket for investeringsanalyser, så derfor er denne informasjonen ansett å være markedsføringsmateriale. Selv om vi ikke er hindret i å handle i forkant av våre anbefalinger, ønsker vi ikke å dra nytte av dem før de blir levert til våre kunder. Se fullstendig disclaimer og kvartalsvis oppsummering.

Finn artikler av analytikere

CFDer er komplekse instrumenter som innebærer stor risiko for raske tap på grunn av giring. 79 % av alle ikke-profesjonelle kunder taper penger på CFDer hos denne leverandøren.
Du burde tenke etter om du forstår hvordan CFDer fungerer og om du har råd til den høye risikoen for å tape penger.
CFDer er komplekse instrumenter som innebærer stor risiko for raske tap på grunn av giring.