Weekly Equities Outlook: Marks & Spencer, easyJet & Palo Alto Networks

Marks & Spencer FY results preview

Marks and Spencer will release its full-year results on Wednesday, May 21st. These results come amid disruptions to online operations, concerns about potential fines and profit downgrades, which have weighed on investors' minds.

After two weeks, Deutsche Bank calculated a profit hit of around £15 million per week from the attacks, and a week ahead of results, UBS estimated the four-week disruption could produce EPS by between 6 to 15% and a £83 million hit to profits. The food division is expected to bear the brunt due to the complex supply chains and waste risk.

Yet despite these risks, the long-term growth story likely remains intact, and no lasting damage is expected to the brand, particularly as the retailer is handling the attacks with exceptional communication.

The cyber-attacks come after year-end, so full-year results will be unaffected. Fourth-quarter like-for-like sales will be a main focus, with food performing well with an increase of 8.9% and like-for-like size, and Q3; however, international sales could continue to be a problem.

The cyber attack could complicate the outlook for the full year 2026, with a profit downgrade possible if online operations remain disrupted.

How to trade MKS results?

Marks & Spencer fell from its 418 high to a low of 342p last week. While the price has recovered from this low, it has failed to rise above its 200 SMA. The RSI is also below 50, supporting further losses.

Sellers will look to take out 342 support to extend losses towards 320 the 2025 low.

Buyers would need to rise above the 200 SMA at 360 to extend gains towards 380.

easyJet H2 results preview

The low-cost budget airline is due to report first-half results on Thursday. Given the cyclical nature of easyJet’s business, these tend to be weaker than H2 results.

Back in January, easyJet posted a headline loss of $61 million, a fast improvement on the £126 million loss reported in the same quarter a year ago. A similar pattern is expected in Q2 passenger growth reached a 7% increase year on year in Q1, with revenue rising 13% to £2.04 billion from £1.8 billion.

At the time, Q2 forward booking saw a 57% increase, Q3 saw 26% sold, and Q4 saw 13%. Commentary surrounding the important summer season will be in focus. Falling oil prices have the potential to lift profits as they account for such a significant chunk of airlines' costs. However, that same concern over Trump trade tariffs that pulled oil prices lower could also impact bookings and business.

How to trade easyJet results?

The share price has extended its recovery from 400, rising above the 200 SMA to a peak of 557. The price has eased back, pulling the RSI out of overbought territory.

There is no concrete sign of a reversal and the uptrend remains intact. Buyers will look to extend gains above 557 towards 580.

Support is at 515, a level that has offered resistance on several occasions over the past year. Below, the 200 SMA is seen around 500.

 

Palo Alto Network Q3 earnings preview

The cybersecurity firm is due to report fiscal Q3 earnings after the closing bell on Tuesday. Expectations are for quarterly revenue of $2.28 billion at 15% only and EPS of $0.77 per share up from $0.66 per share a year earlier.

The share price rose to a record high following Q2 earnings in February as the company guided to another strong set of numbers amid a period of strong spending throughout network security markets.

Investors will focus on subscription revenue growth, cloud security adoption rates, and updates of the company's AI security products.

Analysts remain bullish on Palo Alto Networks with consensus ratings tilted towards buy recommendations. 33 of 47 analysts covering the stock issued strong buy ratings, recommended moderate buyers, 11 hold, and one advised sell.

How to trade PANW earnings?

The price has recovered from the 144 April low, rising above the 200 SMA to a peak of 195.00. Buyers, supported by the RSI above 50 will look to rise above 195 and 205 to bring 208 and fresh record highs into play.

Support can be seen at 185, and below that is the 200 SMA.