WPP PLC (LON:WPP) reports its half-year results on Tuesday a day after announcing the appointment of joint chief operating officer Mark Read as its chief executive officer.
Read started with immediate effect and replaces Martin Sorrell, who stepped down in April after 33 years at the helm following an internal investigation into claims of personal misconduct.
The appointment of Read was widely expected ahead of the announcement on Monday.
Investors will be keen to hear from WPP's new boss and any plans he may have for the company when the interims are released.
As for the financials, analysts at Deutsche Bank expect a strong set of results.
“Coming at the end of a quarter where the ad agency sector has delivered volatile organic growth, we think WPP will report a solid, unspectacular set of results, with broadly flat organic growth. If anything, the risk is to the upside with comps easing 250 bps vs. 1Q." the bank said.
They concluded: “We don’t expect any modifications to guidance or a marked change of strategy. Although we think WPP’s valuation is low, the process of integration and simplification will be lengthy.”
Redrow forward guidance in focus
Redrow plc (LON:RDW) also releases its full year results with all eyes on its forward guidance.
Completions are expected to be up 6.2% to 5,650 units and the average selling price up 5% at £325,000, resulting in revenue of £1.86bn, up 12% year-on-year. The dividend is forecast to be 25.3p.
Deutsche Bank said: “Markets will keenly follow comments on current trading and order books to gauge market stability. We expect broadly stable trading performance with H2 private sales rate down c.1% implying FY18 private sales rate of 0.67, c.2% below last year's level. Given the healthy order book position, we believe FY19 assumptions should be well supported with the group nearly 50% forward sold for FY19 private sales,” Deutsche’s analysts said in their preview.
Spanish deal integration eyed at DS Smith
Blue chip packaging group DS Smith PLC (LON:SMDS) forked out €1.9bn to acquire Spanish rival Europac earlier this year and the market will be looking for an update on how that is progressing in its trading update.
Graham Spooner, Investment Research Analyst at The Share Centre: “The company announced good full-year results in June saying that volume growth momentum had continued into the new financial year.
“It has also scaled back some expansion plans due to Brexit and investors will be interested to hear if that caution remains.”
He added: “Any news on the review of the plastics business will also be of interest, not just to investors in this company but others in the same sector.”
Significant announcements due:
Finals: Redrow plc (LON:RDW), Craneware PLC (LON:CRW), A&J Mucklow Group PLC (LON:MKLW), Mattioli Woods plc (LON:MTW)
Interims: WPP PLC (LON:WPP), Alfa Financial Software Holdings PLC (LON:ALFA), Boku Inc (LON:BOKU), Cairn Homes PLC (LON:CRN), Dalata Hotel Group Plc (LON:DAL), European Wealth Group Limited (LON:EWG), Filta Group Holdings PLC (LON:FLTA), Gulf Marine Services PLC (LON:GMS), Inspired Energy plc (LON:INSE), Johnson Service Group plc (LON:JSG), Lighthouse GroupPLC (LON:LGT), Michelmersh Brick Holdings Plc (LON:MBH), Porta Communications PLC(LON:PTCM), Taptica International PLC (LON:TAP), Telit Communications Plc (LON:TCM)
Trading update: DS Smith PLC (LON:SMDS)
Traffic numbers: Wizz Air PLC (LON:WIZZ)
Economic data: UK construction PMI index; US ISM manufacturing report; US manufacturing PMI index; US construction spending index