Earnings preview: Persimmon, Entain, Vistry

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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Earnings results are a great way for investors to judge a company. They are 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.

Persimmon (H1 trading update)

Persimmon (LSE: PSN) is one of Britain’s biggest and most renowned housebuilders. It builds properties ranging from flats to large family homes located across the UK. The FTSE 100 firm is expected to provide a trading update for its most recent half-year performance ending June 2022 on Thursday 7 July.

Analysts in the UK don’t normally publish earnings previews for six-month periods, so it’s best to compare the firm’s upcoming 2022 first-half numbers to the ones from a year before. The H1 2022 figures can also be useful to determine whether it’ll outperform its FY21 numbers, or even beat analysts’ FY22 forecasts.

In this case, Persimmon is predicted to show slight growth in its numbers as housing supply continues to attempt to match high demand. If the housebuilder posts a better-than-forecasted number on Thursday with positive guidance, it could be on course to beat its financial year estimates.

MetricsAmount (H1 2021)Amount (FY21)Analyst Earnings Estimates (FY22)
Total Revenue£1.8bn£3.6bn£3.9bn
Underlying Diluted Earnings per Share (EPS)£1.23£2.48£2.56
Source: Persimmon H1 2021 Results

Entain (H1 trading update)

Entain (LSE: ENT) is an international sports betting and gambling company. It owns brands such as Bwin, Coral, Ladbrokes, PartyPoker, and Sportingbet. Entain will provide a trading update for its most recent half-year performance ending June 2022 on Thursday 7 July.

Based on the earnings preview, Entain expects to have a much stronger second half to its financial year than its first. Nonetheless, a headline beat on its previous year’s H1 results could spell a positive outlook for the firm.

MetricsAmount (H1 2021)Amount (FY21)Analyst Earnings Estimates (FY22)
Total Revenue£1.8bn£3.9bn£4.4bn
Dliuted Earnings per Share (EPS)£0.19£0.54£0.75
Source: Entain H1 2021 Results

Vistry (H1 trading update)

Vistry (LSE: VTY) is another housebuilder that’s providing investors with a trading update. The Kings Hill-based firm will be updating shareholders on for its most recent half-year performance ending June 2022 on Thursday 7 July.

Just like its peer, Vistry is also expecting modest growth in its numbers. This is expected to come from rising house prices. The key metric to look out for will be its diluted earnings per share metric. A better than expected number could make analysts’ predictions of achieving a much higher EPS later this year possible.

MetricsAmount (H1 2021)Amount (FY21)Analyst Earnings Estimates (FY22)
Total Revenue£1.1bn£2.4bn£2.7bn
Dliuted EPS (Before exceptional items and amortisation of acquired intangibles)£0.59£1.25£1.42
Source: Vistry H1 2021 Results

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. The Motley Fool UK has no position in any of the shares mentioned. 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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