Blue-chip plumbing and heating products distributor Ferguson Plc (LON:FERG) makes most of its money in the US, rather than UK, so while investors will keep an eye out for the state of its UK order book and restructuring plans, the main focus of a trading update on Tuesday will be across the pond.
In a preview, Hargreaves Lansdown’s Salmon said; “The wider economy looks to be strengthening, but worries are gathering that the American housing market is stalling.
“Perhaps with that in mind, the shares have dropped recently. These results give Ferguson an opportunity to ease worries and restore confidence.”
He added: “We’d like to see the recent trend for like-for-like sales increases of 7%-8% to continue. We’re also yet to hear if the group’s planning further returns to shareholders – it returned $2bn last year, through a mix of special dividends and share buybacks.”
Tasty special dividend expected from Greencore
Investors in Irish convenience food firm Greencore Group PLC (LON:GNC) will be eyeing any information on a special dividend on Tuesday as the firm reports its full-year results following the sale of its US business to snacks giant Hearthside Food.
The FTSE 250 firm agreed the sale in October for US$1bn in a move to double down on its “dynamic” home UK market.
The bulk of the cash – around £509mln – will be returned to shareholders in the form of a special dividend. A further £293mln will be used to beef up the balance sheet by paying down debts.
However, despite the tasty prospect of the dividend, shareholders may continue to voice their displeasure around the group’s move out of the US market which resulted in a 9% share drop the day it was announced.
Tuesday December 4:
Trading update: Ferguson Plc (Q1) (LON:FERG), IG Group PLC (LON:IGG)
Finals: Victrex PLC (LON:VCT), Greencore Group PLC (LON:GNC), ITE Group PLC (LON:ITE), Ixico PLC (LON:IXI)
Interims: DiscoverIE Group PLC (LON:DSCV), Collagen Solutions PLC (LON:COS), Consort Medical PLC (LON:CSRT), Mind Gym PLC (LON:MIND), Park Group PLC (LON:PKG), Tekmar Group PLC (Q2) (LON:TGP), Vianet Group PLC (LON:VNET), WYG PLC (LON:WYG)
Traffic numbers: Wizz Air PLC (LON:WIZZ)
AGMs: Greatland Gold PLC (LON:CCP)
Economic data: UK construction PMI