Earnings preview: Ashtead, Halma, FirstGroup

A company’s earnings can indicate whether it’s doing well. So, here are this week’s biggest FTSE firms reporting results, and what to expect.

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Key Points

  • Ashtead is expecting both its top and bottom lines to recover from its pandemic woes.
  • Analysts are expecting Halma's figures to grow slightly from the previous year.
  • FirstGroup are expected to see a decline in its numbers, potentially moving back into unprofitability.

Earnings results are a great way for investors judge a company. It used to determine whether companies are on track with their initial guidance. These results can often radically move share prices in either direction, depending on the numbers reported. So, here is an earnings preview for three FTSE firms reporting results this week.

Ashtead

Ashtead (LSE: AHT) is a British industrial equipment rental company. It has networks in the UK, US, and Canada. It also trades under the name of Sunbelt Rentals. The industrial firm is expected to report earnings for its financial year 2022 on Tuesday, 14 June 2022. The earnings preview indicates a positive trend in both its top and bottom lines as it recovers from its pandemic woes.

  • Market cap: £17.5bn
  • Price-to-earnings (P/E) ratio: 18
  • Dividend yield: 1.1%

  • Earnings per share estimate (FY 2022): £2.47
  • Earnings per share (FY 2021): £1.56
  • Total revenue estimate (FY 2022): £6.47bn
  • Total revenue (FY 2021): £5.0bn

Halma

Halma (LSE: HLMA) is a British global group consisting of safety equipment companies. These firms make products for hazard detection and life protection. The FTSE 100 group is expected to report earnings for its financial year 2022 on Thursday, 16 June 2022. The earnings preview indicates slight growth from the previous year.

  • Market cap: £8.0bn
  • P/E ratio: 30
  • Dividend yield: 0.9%

  • Earnings per share estimate (FY 2022): 63.1p
  • Earnings per share (FY 2021): 58.7p
  • Total revenue estimate (FY 2022): £1.5bn
  • Total revenue (FY 2021): £1.3bn

FirstGroup

FirstGroup (LSE: SSE) is a British multi-national transport group. The company operates transport services in the UK. The transport company is expected to report earnings for its financial year 2022 on Tuesday, 14 June 2022. Earnings preview indicates a drop in revenue and a return to unprofitability.

  • Market cap: £1.0bn
  • P/E ratio: 2
  • Dividend yield: –

  • Earnings per share estimate (FY 2022): -0.4p
  • Earnings per share (FY 2021): 2.4p
  • Total revenue estimate (FY 2022): £4.52bn
  • Total revenue (FY 2021): £6.8bn

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 considered so you should consider taking independent financial advice.

John Choong has no position in any of the shares mentioned at the time of writing. The Motley Fool UK has recommended Halma. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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