What You Need To Know About British American Tobacco plc’s Upcoming Results

A preview of British American Tobacco plc (LON:BATS)’s upcoming half-year results.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

FTSE 100 tobacco giant British American Tobacco (LSE: BATS) (NYSE: BTI.US) is due to announce its annual results on Wednesday this coming week (31 July).

At the time of writing, BAT’s shares are trading at 3,446p — up 8% from six months ago compared with a 6% rise for the Footsie.

How will BAT’s business have performed in the first half compared with last year’s first half? And will the company be on track to meet analyst consensus forecasts for this year’s key full-year numbers? Here’s your cut-out-and-check results table!

  H1 2012 FY 2012 H1 2013 Forecast
FY 2013
Forecast
FY growth
Revenue £7.5bn £15.2bn ? £15.6bn +3%
Adjusted earnings per share (EPS) 102.9p 208.6p ? 223.6p +7%
Dividend per share 42.2p 134.9 ? 145p +7%

Revenue

Statutory revenue for 2012 was down by 1% on the previous year due to adverse currency exchange rates. At constant rates revenue was up 4%.

Exchange rates continued to be unfavourable — to a somewhat lesser degree — during the first quarter of 2013, with BAT posting revenue growth of 1% (5% at constant exchange rates). The Q1 results were announced towards the end of April, and management said: “If current exchange rates persist for the rest of the year, the currency headwind that adversely impacted the quarter will reverse”.

Analysts are forecasting a 3% rise in statutory revenue for 2013. If H1 goes in line with the full-year forecast, look for half-time revenue of about £7.7bn within next week’s results.

Earnings and dividend

The City experts are expecting to see 7% growth in adjusted EPS for the 2013 full year, bringing EPS up to 223.6p from last year’s 208.6p. If BAT delivers 7% growth in H1, look for EPS for the period at something above 110p.

The analysts see BAT’s dividend increasing to 145p for the full year from last year’s 134.9p — growth at around the same level as earnings. BAT’s policy is to distribute 65% of earnings as dividends, and the analyst forecasts for EPS and dividend per share are bang in line with that policy. Shareholders should be looking for an interim payout in excess of 45p within next week’s H1 results.

Finally, if you’re interested in defensive dividend shares such as BAT, you may like to help yourself to the very latest free Motley Fool special report.

You see, this report tells you all about another great lower-risk income opportunity. The company in question offers a 5.5% yield and has just been declared The Motley Fool’s Top Dividend Stock“.

Just click here to download the report — it’s free.

> G A Chester does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

How to invest £1,000 in an ISA and aim for a second income of £171,523

Dividend stocks are a natural choice for investors seeking a second income. But this might involve missing out on some…

Read more »

Investing Articles

Down over 70% in 5 years, will the TUI share price ever recover?

The last few years have been bumpy for the travel sector. But with the TUI share price still down substantially,…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Spirax share price has gone nowhere in five years! Time to buy?

The Spirax share price stands almost exactly where it did five years ago. Our writer asks why? And, more importantly,…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

3 shares I’m avoiding like the plague in today’s stock market

Our writer picks a trio of shares from the London stock market he has no plans to buy right now,…

Read more »

Investing Articles

Up 167% in 2024! Is this growth stock showing any signs of slowing?

With artificial intelligence (AI) changing the world in the last few years, growth stock Nvidia has enjoyed an incredible run.…

Read more »

Young Black woman looking concerned while in front of her laptop
Investing Articles

Lloyds’ share price is dirt cheap! But I’d still avoid it like the plague

Lloyds' share price looks a brilliant bargain at 59p. But closer inspection suggests this could be a FTSE 100 share…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

Here’s how investing £83 a week in FTSE 100 shares could make me rich

By putting less than £90 each week into FTSE 100 shares, this writer thinks he could build a portfolio worth…

Read more »

Growth Shares

Down 88% in 3 years, I think the boohoo share price is ready for a comeback

Jon Smith flags up why some of the problems facing the boohoo share price should fade in the coming year…

Read more »