Packed diary ahead as Entain PLC, JD Wetherspoon joined by Netflix

Another packed diary looms ahead for the coming week, with US earnings season adding to the range of news for investors to peruse, along with important UK employment and inflation numbers.

The week will begin with an update from housebuilder Taylor Wimpey PLC (LSE:TW.) and emerging markets asset manager Ashmore PLC, with following days including mining giants Rio Tinto and BHP, Primark owner AB Foods, bookmaker Entain, publican JD Wetherspoons, retail investment groups AJ Bell and CMC Markets

Full year completions of 13,930 are expected for the FTSE 100 housebuilder, around 90% of 2019 level, predicted UBS, with an average selling price (ASP) of £296k.

Including the contribution from Spain, UBS analysts expect group revenues of £4.2bn and underlying earnings (EBIT) of £820mln, in line with previous guidance, and net cash of around £22mln above guidance £700mln.

For 2022, the market is expecting EBIT of around £903mln.

“While there will likely not be formal guidance for 2022, we expect +5% volume growth, slight ASP decline (-0.5%) and operating margins of 20.0% resulting in EBIT of £883mln,” said UBS.

Less for Ashmore

For Ashmore’s second quarter another difficult period is expected, following the US$1bn of net outflows reported in its first as emerging markets remained challenging.

Consensus forecasts are already moving lower to reflect the headwinds to assets under management, said broker Peel Hunt.

“We also note that after a period of GBP weakening, there is likely to be some FX impact, as currency trends have reversed over the last few weeks.

“To some extent, the share price already reflects the expectation of lower forecasts, having fallen 25% over the last six months.”

Tuesday 18 January

Miner improvements?

Big mining shares have perked up since November on the back of huge dividend payments and a rally in iron ore and copper prices.

Rio Tinto PLC (LSE:RIO) and BHP PLC are both scheduled to update on production next week, on Tuesday and Wednesday respectively, though there is still scope for more cash to be handed analysts are expecting a cautious tone.

As these are production updates, they don’t normally contain much financial information but cost pressures in terms of power, raw materials, labour and freight are a concern across the industry.

Sector peer Anglo American has already flagged inflation of 10% in 2021 and if other miners mention them this time as well that will be a big red flag, say analysts.

Consensus forecasts for Rio are for iron ore output in 2021 to be down by about 4% with a forecast expected for a rise by the same amount in 2022.

Decline expected for 888

888 Holdings PLC (LSE:888) is set report a trading update on Tuesday, with investors waiting to see the impact Dutch regulations will have had over the final quarter of 2021.

The Netherlands gambling authority introduced a new policy…