Tobacco company Imperial Brands PLC (LSE:IMB), whose key brands include JPS, Davidoff and Gauloises, is set to release a pre-close trading update on Thursday.
Shares in the FTSE 100 group are one of the 10 best performing in the blue-chip index in the year to date, one of fewer than 20 companies that are in positive territory in 2022.
In the results lead-up, UBS upgraded to a “buy” and noted in a recent industry conference, the key messages from the company chiefs were about improving market share trends in its top five markets, further growth in next-generation products with losses moderating and that it was on track for a "meaningful and systematic buyback".
An announcement on this may be left until the year end, however.
According to analysts at AJ Bell, “investors appear to be putting aside their doubts over the long-term future of smoking and how Imperial Brands can adapt in the face of ongoing regulatory pushback by developing its next-generation products, in favour of the relative short-term dependability of demand at a time when the economic outlook is so uncertain".
IMB has set revenue growth guidance between zero and 1% on a constant currency basis and a 1% increase in operating profit, while analysts have pencilled in a profit forecast of £3.7bn against £3.6bn this time last year.
N Brown and Chemring
Elsewhere, clothing retailer N Brown PLC should provide half-year results where trading in the second quarter and the outlook will be under the microscope, with this being the first update since a Q1 update in June.
Sales were down 2.1% in the first quarter, with its core brands up 2.5% compared to a period the previous year that was hit by lockdowns in March and early April, while 'heritage brand' sales were down 7.2%.
It said the trading environment had been "challenging" since the start of the financial year in March, with inflation impacting consumer confidence, resulting in softer volumes and revenue than expected.
N Brown's Management still kept their guidance for full-year earnings (EBITDA) to be "at a level similar to that reported in FY21" and in the medium term to deliver 7% product revenue growth with a 13% EBITDA margin.
Shares in owner of the JD Williams, Simply Be and Jacamo brands are down 45% in the year to date.
Chemring Group (LSE:CHG) PLC shares, on the other hand, are just above flat this year and were on the up ahead of a third-quarter update, following interims where it upped the dividend 19% and kept guidance for the full year unchanged.
The maker of military countermeasures is thriving in what chief executive Michael Ord described as the geopolitical uncertainty brought about by Russia's invasion of Ukraine that had "highlighted the need for increased defence expenditure, particularly amongst European members of NATO" and increased demand from countries wanting to "re-equip and modernise their defence capabilities to meet the threat of peer on peer conflict".
Significant announcements on Thursday
Interims: N Brown PLC
Trading updates: Chemring PLC, Ferrexpo PLC, Imperial Brands PLC, RS Group PLC
AGMs: Braemar PLC, Diageo PLC, T42 Lot Tracking Solutions PLC
Economic announcements: PMI Construction (UK), Continuing Claims (US), Initial Jobless Claims (US),