Look ahead to FTSE 350, other companies reporting & economic events from 24 – 28 June 2024

Look ahead to FTSE 350, other companies reporting & economic events from 24 – 28 June 2024

• Will Carnival be cruising at full speed into summer?
• Halfords pinning hope on service growth
• Can Currys maintain its recovery?
• Moonpig takes one step forward and two steps back

Carnival, Half Year Results, Tuesday 25 June
Derren Nathan, head of equity analysis, Hargreaves Lansdown 
“Carnival has faced several obstacles in the first half of the year. Namely the temporary closure of its Baltimore port after a cargo ship collided with a bridge, and the conflict in the Red Sea. But, at the last check, record demand and bookings meant that it was on track to meet 2024 guidance for underlying cash profit (EBITDA) of $5.6bn.

Prices have been trending higher and Carnival’s guided for a further increase in profitability when it reports second quarter earnings next week. Given the strong booking position for the rest of 2024, markets aren’t expecting any major surprises and will be looking for any clues as to how next year is shaping up.

The second quarter tends to be the strongest in terms of cash generation, so investors will keep an eye on whether Carnival’s managed to put a dent in its net debt pile, which totalled $28.5bn at the end of February.”

Halfords, Full Year Results, Thursday 27 June
Guy Lawson-Johns, equity analyst, Hargreaves Lansdown 
“Back in February, Halfords issued its second profit warning in as many years, citing a “material weakening” in three of its four core segments: Cycling, Retail Motoring and Consumer Tyres. Markets are now expecting a pre-tax profit of around £36mn, over 25% lower than previous guidance.

Halfords aims to roughly double its profits over the medium term but, with the group remaining cautious about short-term market recovery, this goal won’t be without challenges. The company hopes that the growth of its service focused business will be the catalyst for change. Its Motoring Loyalty Club, with over 3mn members, is gaining momentum and has the potential to improve customer retention and create a more resilient, lower risk business.”

Currys, Full Year Results, Thursday 27 June
Guy Lawson-Johns, equity analyst, Hargreaves Lansdown 
“Currys’ performance has been underwhelming in recent times, but there are signs that headwinds are easing. Consumers have struggled to justify upgrading appliances, with demand for small electrical goods being particularly affected. But, with the green shoots of a recovery in UK discretionary spending, even a partial return to the longer-term growth trend could significantly benefit the group.

The Nordics are also showing signs of life, sharing in the group’s 2% like-for-like growth in the final quarter. Full year underlying operating profit is expected to exceed consensus estimates, with sales growing and margins benefiting from higher customer adoption of solutions and services.

After selling its Greek operations, Currys has entered the new year as a leaner business. It’s expected that some of the funds from the sale will be used to pay down debt, which have historically weighed on sentiment. Markets will be looking for guidance on how an improved balance sheet will translate into capital investment and margin growth in the current year.”

Moonpig, Full Year Results, Thursday 27 June
Susannah Streeter, head of money and markets, Hargreaves Lansdown 
“The trend for E-card and gift retailer, Moonpig, appears to be one step forward and two steps back. After being hit with the cost-of-living crisis, which saw consumers shift to lower price cards and gifts, there were hopes that sales prospects were set to markedly improve. The company has shown more resilience with big events like Mother’s Day proving a draw for personalised cards. Moonpig profits had edged up with subscriptions offering members discounts on cards helping to boost sales. However, shares were hit with a big case of the jitters after it emerged that private equity backers of Moonpig cashed in stakes in the company at a significant discount, casting fresh doubt on the company’s growth prospects.

Moonpig is investing in artificial intelligence technology, helping customers scribe the perfect message in cards which it says is boosting their appeal, but as other online retailers offer their own personalised services, it looks set to be a tough marketplace to compete in.”

Among those currently scheduled to release results next week:

*Events on which HL will be updating investors