We anticipate the following releases locally:
Barloworld (1H23 Earnings): In a recent trading statement, management predicted that headline earnings per share (HEPS) from continuing operations would rise to between 573.9 and 585.5 ZAR cents, an increase of between 28.5 and 31% year-over-year. For the five-month time frame finished 28 February 2023, we saw income increment 15% y/y, while working benefit from center tasks developed 18% y/y, driven areas of strength for by in the entirety of its organizations.
Astral Foods (1H23 Earnings): Management anticipates a y/y decrease in HEPS of 87% to 92%. Record-high feed input costs, load-shedding, and the general deterioration of municipal infrastructure, which continues to have a negative effect on operational efficiency and costs, contributed to the outcome.
Famous Brands (FY23 Earnings): Management anticipates that due to an increase in sales in Leading Brands and Logistics, HEPS will rise between 27% and 47% year-over-year in this filing. The gathering keeps on seeing a decent recuperation in fast help café execution and easygoing feasting post Coronavirus limitations. However, load-shedding and challenging economic conditions continue to be obstacles.
According to a recent trading statement, Coronation Fund Managers’ (1H23 Earnings) HEPS is anticipated to decrease by between 89 and 99 percent year-over-year. This is because, following a recent loss in the Supreme Court of Appeal (SCA), the company increased a provision to pay SARS an outstanding amount of between R800 and R900 million. The company will not declare an interim dividend, as previously stated. Starting around 31 Walk 2023, all out resources under administration (AUM) were R623 billion.
Reunert (1H23 Profit) – Per the executives direction, HEPS are supposed to be somewhere in the range of 257.3 and 276.8 ZAR pennies, an increment of somewhere in the range of 31.9% and 41.9% y/y. Development was driven by further developed interest for the organization’s items and administrations as well areas of strength for as exhibitions, especially in the Electrical Designing and Applied Hardware organizations. In the most recent trading statement, management said that the strong order books in Electrical Engineering and Applied Electronics suggest growth for the rest of the year.
Old Shared (1Q23 Deals) – The board’s standpoint for FY23 was wary, featuring proceeded with strain on clients in the midst of a difficult large scale climate. However, the team is still optimistic that sales will continue to rise.
Tsogo Sun Gaming (FY23 Earnings): HEPS growth is expected to range from 34% to 42% year-over-year, or 147 to 156 ZAR cents. This includes a R289 million expense for canceling a hotel management contract, which was previously disclosed. This expense was partially offset by a hedge credit of R57 million (after tax). The group was in a strong position to deliver strong headline earnings growth thanks to improved cost bases at casino precincts and headquarters, lower debt levels, and tightly controlled capital cash allocation.
Pepkor (1H23 Earnings): In the first quarter of this year, top-line growth was 5.3%, demonstrating the resilience of most brands in the face of a challenging macroeconomic environment. Revenue is anticipated to rise by 6.3% for the entire year, while earnings are anticipated to decrease slightly. We’ll know for sure if this is a reasonable expectation from the first half result.
We also anticipate Netcare, Mediclinic, and Life Healthcare’s interim results, and DataTec is also scheduled to report numbers this week.
Gold Fields and Liberty Two Degrees will hold their annual general meetings on May 24, 2023; Grindrod and ArcelorMittal will host shareholder meetings the following day. Glencore’s AGM is scheduled for May 26, 2023. On the 23rd, Famous Brands will hold a general meeting to discuss the adoption of a new long-term share incentive program. On Wednesday, May 24, 2023, Redefine Properties and Equites will trade without paying dividends.
The US earnings season is almost over. North of 467 organizations in the S&P 500 have announced profit. 360 of these have detailed main concern results in front of assumptions and 317 have revealed surprisingly good deals. The total profit and income shock is as of now +6.24% and +2.56%, separately. Total income for the file has expanded 4.34%, nonetheless, the primary concern so far is down 3.2% generally speaking.
This week, we are keeping an eye on two significant releases in the United States:
NVIDIA (1Q24 Results): Management has predicted that revenue will rise by 2% q/q to $6.5 billion for this quarter, which is in line with consensus, and that adjusted operating expenses will be $1.78 billion. Also in line with expectations, the quarterly gross margin will rise to 66.5 percent by roughly 50 basis points. It is anticipated that its Datacentre business will resume growth in 2H24. Gaming is likewise expected to do well following the send off of its new realistic handling unit.
Costco’s results for the third quarter of this year are expected to show a slowdown in same-store sales (excluding fuel) from very high levels in the previous year. A few patterns from 2Q23 that are supposed to continue incorporates higher staples buys instead of optional and more modest bin sizes. Although the business has demonstrated an excellent capacity to manage this in the past, inflation is expected to continue driving up costs. The expected annual increase in adjusted earnings per share is 9%.
In Europe, results are normal from Kingfisher and Imprints and Spencer, while over in the Asia-Pacific prominent deliveries will be from Lenovo and Xiaomi.
Economics Weekly: Will the MPC raise rates once more, tightening the belt even further?
After hiking at every meeting since November 2021, the MPC will hold its third annual meeting next week. The question, or fear, is whether they will extend the hiking cycle. While we maintain the point of view that the MPC has cause to stop, having climbed by a combined 425bps to date, there is a high likelihood that another 25-50bps will be carried out. The repo rate would rise to 8.25 percent, the highest level since the beginning of 2009, when it was 9.5%.