This week, the FTSE 100 has come under increasing pressure as earnings concerns have escalated. The FTSE 100 index dropped to the lowest level in three weeks, as American indices such as S&P 500 & Nasdaq100 fell.
This week, the index has reacted strongly to a number of earnings reports. On Thursday, telecom giants such as Vodafone and BT Group released their earnings. Lloyds, the largest bank in Britain, was first to announce its results. AstraZeneca, Unilever and other top FTSE 100 firms released their earnings this week.
Rolls-Royce shares have fallen in price
Rolls-Royce Holdings, which will publish its results next Thursday, is one of the FTSE 100 companies that you should be watching. The numbers are important as the stock is in a correction after dropping by more than 11% since its peak this year.
Despite the pullback in Rolls-Royce’s stock, it has remained one of FTSE 100’s top engines since 2020. The company has increased by more than 1,200% since its low point in March 2020. It is one of the top performers for this year.
It will be clearer if the company has achieved its goals based on upcoming results. The company hopes to reach an operating profit between PS2.5 and PS2.8 billion in 2027, and operating margins between 13 and 15 percent.
Rolls-Royce faces a major challenge because companies such as Boeing and Airbus do not produce at the pace expected. Airbus cut its production forecast due to parts shortages, while Boeing continues to face internal problems.
Rolls-Royce could be affected by the fact that many airlines have cut their profit guidance. RR, a manufacturer of engines, makes the majority of its revenue from airline contracts.
BAE Systems Earnings ahead
THE STREET
BAE, like Rolls-Royce has also been an important growth engine in the Footsie. Its stock price has risen by 257% since its low point of 2020. It has also benefited from geopolitical tensions between China and the US, the war in Ukraine and other factors.
This has led to an increase in backlogs, reaching a new record of more than PS70 billion. The trend is likely to continue. The results on Thursday will give more information about the rate of growth in backlog and margins.
The key challenge facing BAE Systems, and the other military-industrial complex companies is how to increase their profit margins.
HSBC Earnings ahead
HSBC is the largest European bank in terms of assets and will also be a key component on FTSE 100 next week. HSBC, like Rolls-Royce or BAE Systems has seen its share price fall for 7 consecutive weeks. It is now down almost 9% since the peak of this year.
Results will be available a few weeks after Noel Quinn surprised the market with his resignation. Georges Elhedery will replace him as CEO, effective September 2.
These numbers will show if HSBC is improving its profitability. In the most recent quarter, HSBC’s profit was $12.7 billion. This included a $4.8 billion profit from the sale of HSBC China, and a $1.1billion impairment of Argentina.
BP Earnings ahead
BP, which is the second largest energy company on the FTSE 100, will also release their earnings. The recent performance of oil and gas will probably show a stable trend in these numbers.
Brent and West Texas Intermediate benchmarks (WTI), have been stable above $80 for the last few months. BP is expected to publish a strong set of financial results in the coming week.
As shown in the chart above, BP’s share price formed a rectangle whose top and bottom sides were 541p each. The pattern is a bullish pattern with a flag, which means that the price will most likely rebound later in this year.
Rio Tinto earnings
Rio Tinto’s results will make it a key part of the FTSE 100 next week. Its stock, like most of the names on this list has fallen by around 15% since its peak this year. The price of commodities fell as a result of the renewed concerns about China’s economy.
Amid rumors that the company was looking at acquiring Teck Resources ,a major Canadian mining firm. The results of these tests will give the company a chance confirm or refute these rumours.
Next week, the other FTSE 100 top companies that you should be watching are Schroders (London Stock Exchange), Mondi International Consolidated Airline, Standard Chartered St. James Place and Fresnillo.
The post FTSE 100 stocks to watch: BP (BP), HSBC (HSBC), BAE (BAE), Rolls-Royce, etc.) may change as new information becomes available
This site is for entertainment only. Click here to read more
