“Key will be outlook and trading into Q4 against the backdrop of a slowing US housing market.”Īs for the UK builders, we last heard from them in March, when Bellway PLC (LSE:BWY) was bullish, reporting a strong forward sales position of 7,491 homes and £2.2bn and indicated that it expected volumes for the year to July to be 11,100 at an average selling price of £305,000. Revenues growth has waxed and waned so far this year, up 21% in the first quarter, 15% in the second and 23% in the third, with management looking for full-year growth of 19% to 21%.įor the new financial year to April 2023, the current market consensus is for 13% sales growth to $8.9bn, with profit before tax to rise 16% to US$2.1bn.Īttention will also be on Ashtead’s investment plans, said analysts at AJ Bell: “if management is feeling bullish on the outlook, then it will buy more kit to rent out.”Īshtead spent US$938mln on nineteen bolt-on acquisitions in the first three quarters, while capital investment almost tripled to US$1.7bn, with the budget for capex lifted to $2.4-2.5bn.įor Ferguson, a US-focused supplier of plumbing equipment, analysts at UBS expect third-quarter sales of to be up 12.9% to US$6.8bn and underlying profits (EBITA) up 8.9% to US$614mln. Shares in Ashtead PLC are down by a third from their November peak as investor concern about the effects of surging energy and commodity prices on the US economy override the upgraded earnings guidance at the equipment hire group’s past three updates and ongoing US$1bn share buyback.Īshtead generates more than 80% of its sales and profits in the US via its Sunbelt construction equipment and plant hire arm. On Tuesday, two FTSE 100 companies, Ashtead and Ferguson, will give a good insight into the nuts and bolts of the important US sectors or infrastructure and home construction, while the UK housing sector will be taken care of with numbers from housebuilders Bellway and Crest Nicholson and online property group OnTheMarket. “We expect only the services sector to grow in April, with construction activity and industrial production falling marginally, adding to the trend of sluggish growth data seen over the last couple of months,” said Sanjay Raja, Deutsche Bank’s chief UK economist. With the company diary not getting truly into gear until Tuesday, UK gross domestic product (GDP) monthly numbers might be the main event.Ī sluggish 0.1% month-on-month increase is expected for April, though this is a marginal rebound from the 0.1% fall in March and a flat February. Results and trading updates during the week include retailers Tesco, Boohoo, Halfords, WH Smith (and possibly JD Sports Fashion) housing market plays Bellway, Crest Nicholson and OnTheMarket insights into key parts of the US economy from Ashtead, Ferguson and Halma along with Whitbread, Games Workshop and many more. The coming week sees a step up in reporting activity from the FTSE 100 and 250 companies, just as financial markets are wobbling again on concerns about monetary policy tightening, on which point we will also hear from the US Federal Reserve and the Bank of England in what is also a busy week of central bank action. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Proactive will on occasion use automation and software tools, including generative AI. The team also has access to and use technologies to assist and enhance workflows. Our human content creators are equipped with many decades of valuable expertise and experience. Proactive has always been a forward looking and enthusiastic technology adopter. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. This is content that excites and engages motivated private investors. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience.
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