AA plc (LON:AA.) is due to push out a trading update on Tuesday and investors will be hoping it can continue the recent run of form the stock has been on.
Shares have surged by a third over the past two months, with last week’s contract win to provide roadside assistance to Lloyds Bank customers the latest boon to the share price.
Profits plunged in the first half of last year as the Beast from the East – and the pothole endemic that came with it – ensured that its mechanics were almost always on call during those harsh few months at the beginning of 2018.
There are also concerns over the Citizen Advice Bureau’s super-complaint, which saw it take aim at companies in a number of industries for taking advantage of loyal customers.
Consensus would suggest AA will report full-year earnings per share of around 14.7p.
Plus 500 to smash initial forecasts
Plus 500 Limited (LON:PLUS) is one of the most shorted stocks in London, but the spreadbettor has continually defied the pessimism with its recent updates.
At the end of December, the FTSE 250 company, which specialises in contracts for difference (CFDs), raised its guidance for the second time in a matter of weeks.
City broker Liberum, having revisited its numbers, expects trading income of US$711mln (previously US$682mln) and adjusted pre-tax profits of US$495mln (prev. US$461mln).
TUI to face the music again
Tour operator TUI AG (LON:TUI) is also due up, fresh from its shock profit warning last week.
Like its rival Thomas Cook Group PLC (LON:TCG), the FTSE 100 firm blamed the prolonged hot weather over summer which led to more staycations, while the weaker pound also hit Brits’ pockets.
Because of that update, which surprisingly wasn’t sent out as a stock exchange announcement, investors are pretty well-versed on what’s been going on.
This year’s underlying earnings are likely to be broadly flat, while the target of 10% annual growth in EBITDA has been erased. Last week, it said bookings for this summer are broadly in line with last year, but margins “are not”.
Significant events expected on Tuesday February 12:
Trading update: The AA PLC (LON:AA.), Loop-up Group PLC (LON:LOOP), TUI AG (Q1) (LON:TUI)
Interims: Plus 500 Limited (LON:PLUS), A&J Mucklow Group PLC (LON:MKLW)
Economic data: US NIFB business optimism