Equity Briefing: Rio Tinto, Burberry and Renold
Joshua Warner July 16, 2021 6:13 AM
Mining giant Rio Tinto release an operational update this morning, luxury fashion line Burberry will post first-quarter results, while industrial chain maker Renold is scheduled to publish preliminary full-year results.
Rio Tinto is due to release an operational update covering the second quarter today. These updates concentrate solely on production numbers rather than financials and the primary focus is on whether the miner’s output has kept on track for it to meet its full-year targets. Production of most commodities fell in the first quarter as Rio Tinto is constantly adjusting output to prioritise value over volumes, but it maintained its guidance for 2021 across the board. Reiterating its annual targets will be the priority for investors this morning.
Burberry will release a first-quarter trading update this morning. Burberry’s quarterly trading updates focus solely on revenue figures. Analysts are expecting first-quarter revenue of £444.5 million. That will be a marked improvement from the £257 million booked the year before, flattered by the fact sales were hard-hit as the pandemic erupted and lockdowns started to bite. Revenue will also start to benefit as Burberry focuses more on full-price sales and reducing the number of markdowns it makes in the new financial year. While this should benefit topline revenue it will hurt comparable store sales. Investors will also watch out for news on the search for a new CEO after Marco Gobetti, who has led the company’s transformation over the past three years, announced last month that he is leaving at the end of 2021.
Renold, the maker of industrial chains and power transmission products, is scheduled to publish annual results this morning. The company was hard hit by the pandemic in the first half, but things have been steadily improving since then. We already know that order intake was down 7.4% in the year to £170.0 million and that revenue fell 12.7% to £165.3 million. But, with revenue down just 8.3% year-on-year in the final quarter, Renold will be eyeing a return to pre-pandemic levels of activity in the new financial year. Analysts are expecting adjusted pretax profit to fall to £6.2 million from £8.2 million and for adjusted EPS to drop to £1.90 from £2.90 the year before.
How to trade top stocks
You can trade a variety of stocks with Forex.com by following these four steps:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.