Associated British Foods

Can fashion retailer Primark deliver a Christmas gift      to investors?

Grocery brands-to-fashion conglomerate Associated British Foods’ (ABF) forthcoming trading update on 24 January will be closely watched by the market as its budget clothing chain Primark becomes one of the last major retailers to deliver its festive report.

Retailers’ Christmas updates have been better than feared so far and discounter clothing seller Primark should have benefited from December’s cold snap helping to drive coat and jumper sales. Investors will also be looking for any comment on its click and collect trial.

Dr. Martens

Hedge fund puts boot in ahead of key update

Iconic boot maker Dr. Martens (DOCS) is not heading into its third quarter trading update on 26 January with the most encouraging of portents.

A New York hedge fund, Woodson Capital Management, recently disclosed a £10.5 million short position in the company. This  means it would profit if Dr. Martens’ share price falls.

The stock has already been weak, partly depressed by a November profit warning which helped send its shares to all-time lows of less than half the 370p issue price of its January 2021 stock market listing.

To sustain its recent share price mini-recovery, built on a solid showing for UK consumer-facing peers, and confound Woodson it will need to demonstrate a clear improvement in performance.

This includes boosting sales in the key US market as well as reviving its lucrative direct-to-consumer arm which struggled in the period before Christmas.

Johnson & Johnson (JNJ:NYSE)

The company is set to demerge its consumer healthcare business later this year

Healthcare company Johnson & Johnson (JNJ:NYSE) is expected to beat consensus expectations for earnings per share of $2.22 when it reports its fourth quarter on 24 January, according to Earnings Whisper data.

In the prior quarter the company beat the average analysts’ earnings estimates of $2.49 per share by $0.06 on sales which grew 1.9% year-on-year to $23.79 billion.

Investors will be keen to learn more details about the planned stock market listing of the company’s consumer healthcare unit called Kenvue, originally announced on 4 January.

The spin-off is expected to complete by November 2023 and involves listing at least 80.1% of the $15.1 billion revenue business which is behind brands such as Band Aid and Listerine.

Schlumberger/Baker Hughes

Big earnings growth expected at US energy services giants

With the Western world desperately scrambling to replace oil and gas production from a top global producer and now pariah state Russia, the products and services provided by the likes of service groups Schlumberger (SLB:NYSE) and Baker Hughes (BHI:NYSE) are in big demand.

Schlumberger is forecast to report on 20 January a 66% year-on-year increase in fourth quarter earnings per share with numbers from Baker Hughes on 23 January also expected to be strong.

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