Renishaw PLC (LSE:RSW) results on Thursday 14 September should be worth reading, analysts suggest, as the precision instruments manufacturer provides a rare glimpse into the state of the global economy.
From its base in the Cotswolds, the FTSE 250-listed company sells its products around the world to industries from automotive and aerospace to consumer electronics, healthcare and power generation, making it a valuable barometer of industrial activity and demand.
"It is always worth listening whenever this company speaks, which is not very often if you look at its noticeably brief list of regulatory releases in 2023," said analysts at AJ Bell.
It's been roughly two and a half years since the company was put up for sale when co-founders David McMurtry and John Deer, who own a combined 53% stake in the company, decided to sell their shares and retire from their roles as executive chairman and non-executive deputy chairman.
Although the shares jumped to an all-time high, no suitable offers were forthcoming and the process was called off in July 2021.
Things have not gone so well for investors and the co-founders since. The shares have since fallen around 40% and recently have been under pressure in recent months following a profit warning in April.
To blame were supply chain disruptions, rising costs and lower demand for some of its products, especially in the automotive and aerospace sectors.
For this coming week's final results, investors will be looking for signs of recovery and guidance for the current year, as well as updates on the company's strategic review.
With the company guiding to sales of £680-700 million, analysts are now looking for £675 million, flat against last year, with adjusted pre-tax profit guided to reach £135-150 million.
If guidance is forthcoming for 2024, analysts are currently expecting a 4% increase in revenues to £701 million and a modest recovery in profit to £155 million.