Diageo PLC, Dr Martens PLC and IG Group Holdings PLC in the mixer

Shares in Diageo, the maker of Johnnie Walker, Smirnoff, Guinness and Captain Morgan have risen by around a third over the past twelve months, even with a wobble recently.

The company itself has already flagged up interim organic net sales growth of 16%, with a November investor day setting out medium-term guidance for organic net sales of 5%-7% and organic operating profit growth of 6%-9% for 2023 to 2025 financial years.

Consensus for the half-year numbers reflects that bullishness with a rise in underlying profits (EBIT) of more than 20% likely according to most estimates.

“Earnings have already moved materially over the past 12 months, but we do not believe the upgrade cycle is fully over,” said broker Jefferies.

IG looks Stateside

Interim results from IG Group Holdings Plc (LSE:IGG) (IG Group Holdings Plc (LSE:IGG)) mark the anniversary of the spread betting firm’s acquisition of Tastytrade.

In its fiscal first-quarter update back in September the firm revealed that adjusted net trading revenue for the quarter was down 4% year-on-year reflecting a moderation in trading activity.

Tastytrade, meanwhile, delivered another consecutive record quarter of revenue so while the City was sceptical of the acquisition – the US$1bn price tag was deemed to be on the pricey side – it is fulfilling the role of providing growth in periods when the core business is going through a dull period.

Barclays believes that Tastytrade could benefit from a rise in the US interest rates and a 1% rise could add up to 43% to Tastytrade’s profit, so obviously some in the City are coming around to the merits of the acquisition.

You will see the Dr now

Dr Martens PLC (LSE:DOCS) (Dr Martens PLC (LSE:DOCS)) is set to release a trading statement on Thursday, where supply chain issues are likely to be the ‘sole’ issue. 

The maker of the iconic Dr Martens shoe reported a surge in pre-tax profits in its half year results released in December but dug in its heels and refused to increase full year guidance.

Partly this reflected a temporary closure of its Vietnam factory due to coronavirus (COVID-19) and uncertainty surrounding shipping times at ports, which majorly impacted the USA market, meant the FTSE 250 company erred on the side of caution.

Thursday 27 January:

Interims: Diageo PLC (LSE:DGE), IG Group Holdings Plc (LSE:IGG) NCC Group PLC (LSE:NCC), Rank Group (LSE:RNK) PLC,

Trading updates: Euromoney Institutional Investor (LSE:ERM) PLC, 3i Group plc (LSE:III), Britvic PLC (LSE:BVIC), Dr Martens PLC (LSE:DOCS), Mitie Group PLC (LSE:MTO)

AGMs: Home Reit PLC

Economic data: UK Nationwide house price survey (UK), Gross Domestic Product Annualised (US), Non-defence Capital Goods Order Excluding Aircraft (US), Durable Goods Order (US)