Unilever shares set to rise ahead of Q3 earnings, HQ unification nears

The Anglo-Dutch consumer goods company has delivered a resilient performance amid the backdrop of Covid-19 and is set to see its share price climb higher if it can deliver strong Q3 earnings this month and unify its HQ in the UK.

  • Unilever will unveil its Q3 earnings on 22 October
  • The Anglo-Dutch company’s shares set to soar as UK HQ unification nears completion
  • Unilever shares outperform broad market, up 11% year-to-date

Unilever will unveil its third quarter (Q3) earnings on 22 October, with the stock likely to trade higher this week due to company’s resilient performance against the backdrop of Covid-19.

‘Performance during the first half has shown the true strength of Unilever,’ Unilever CEO Alan Jope said. ‘We have demonstrated the resilience of the business – in our portfolio, in a continued step-up in operational excellence, and in our financial position - and we have unlocked new levels of agility in responding to unprecedented fluctuations in demand.’

The Anglo-Dutch consumers goods company is also likely to see its share price move higher once it unifies its headquarters in the UK, a process that will streamline its cumbersome structure which has complicated major takeovers and hindered its offloading of poorer performing assets.

‘We have also taken action to strengthen the strategic future of the company by announcing proposals to unify our dual-headed legal structure, progressing the strategic review of our global tea business and making new commitments to help protect the climate and regenerate nature,’ Jope added.

Unilever is trading at £48.27 per share at the time of publication, with the stock outperforming the broader market with it up 11% year-to-date.

Dutch ‘departure tax’ poses hurdle to UK HQ unification

Despite Unilever securing support from shareholders to streamline its structure and move its headquarters to London, the company has warned it the process still faces a potential hurdle in the form of the so-called Dutch ‘departure tax’.

The new tax is being proposed by the Dutch opposition Green Party and could potentially make Unilever’s UK unification prohibitively expensive. However, the proposed legislation is still in its early stages and could be viewed by the European Union of breaching its laws on freedom of establishment and free movement of capital, according to a statement by Unilever.

FTSE 100 declines halts, yet further losses seem likely

The FTSE 100 has taken a breather following a bearish start to the week yesterday, according to Josh Mahony, senior market analyst at IG.

‘The wider downtrend in play did point towards a likely bearish reversal from the 61.8-76.4% resistance zone,’ Mahony said. ‘With that in mind, further downside looks likely in accordance with the downtrend seen since June.’

‘An upside move could come to bring us back into a deeper retracement at 5981 (76.4%), yet a bearish outlook holds unless we see price rise through the 6041 resistance level,’ he added.

How to trade stocks with IG

Looking to trade Unilever and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Unilever PLC’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.