BHP Billiton (full-year earnings 22 August)
BHP is expected to report earnings of $1.37 per share, while revenues are forecast to rise 25% to $38.7 billion. The firm has done its best to consolidate its financial position, aided by an improvement in commodity prices. However, now that the tough period for miners is at an end, investors will be looking for clues on either new operations or increased capital return. BHP’s diversification remains one of the key elements of its investment case, which along with rival Rio Tinto continues to put it ahead of competitors.
BHP shares peaked around £14 in August, but since then they have begun to fall back. The question now is whether they can repeat the June trick and bounce off the post-January 2016 rising trendline, which could see a bounce from nearer £12. A break of £14 would clear the way to retest the January high at £15.18.