Equity Briefing: Berkeley Group, Joules Group and IHS Markit

Housebuilder Berkeley Group is thanks to publish full-year results this morning while clothing and homeware designer Joules Group is about to release a pre-close update. Information specialist IHS Markit is thanks to report second-quarter results later today.
Berkeley Group
Berkeley Group will report full-year results covering the 12 months to the top of April this morning.

Berkeley shares have significantly underperformed the broader market over the last year, trading up just 2% compared to the 26% rise within the FTSE 350 Construction & Building Materials index. That comes despite the housing sector remaining resilient during the pandemic, with construction allowed to continue during lockdown and therefore the market buoyed by the stamp tax holiday.

This is partially because Berkeley has greater exposure to London at a time when people are leaving cities, which has caused a drop by reservations and bookings. Plus, there are concerns that its decision to delay a number of its projects until the economy reopened could now cause problems as reports build that materials and labour are harder to urge hold of and costlier .

The housebuilder said in February that benchmark pretax profit should be largely in-line with the £503.7 million reported within the last fiscal year , but analysts expect Berkeley to surprise with a profit of £516.5 million. Still, which will be considerably less than the £775.2 million booked in 2019.

Berkeley has committed to returning £280 million per annum through dividends and buybacks and has done so since 2016.

Joules Group
Joules Group will release a pre-close trading update for the full-year to the top of May today.

The clothing and homewares company revealed in early May that revenue would are available above the £187 million expected by analysts which pretax profit before exceptional items would beat the £4.1 million forecast.

That provides hope that revenue could still grow from the £190.8 million delivered within the previous year and any profit are going to be welcomed considering it booked a £2 million loss the year before.

It has proven resilient during the pandemic because of its online sales and results have also received a lift from the acquisition of homewares firm Garden Trading Co in February, while store sales have picked-up since being allowed to reopen in April.

The focus are going to be on the outlook now that things are beginning to normalise and when Joules Group’s results can return to pre-pandemic levels.

IHS Markit
Later today, before US markets open, IHS Markit will release second-quarter results covering the three months to the top of May.

The company, which deals in providing critical information and data analytics, said it had made a positive start to the year when it released first-quarter leads to March because it began to see a robust recovery in its end markets, enough in order that it said full-year results would be at the upper end of its guidance ranges.

Analysts expect revenue to rise to $1.135 billion within the second quarter from $1.027 billion the year before. Adjusted Ebitda is predicted to rise to $505.7 million from $454.0 million while adjusted EPS is forecast to extend to $0.8 from $0.69.

Notably, IHS Markit is currently within the process of merging with S&P Global under a $44 billion deal struck last year, which is predicted to be completed before the top of 2021.