The Week Ahead: Tesco & Carphone Warehouse

Published in Investing on 8 June 2012

There'll be updates from Sainsbury too, and news from the telecoms sector.

We hope you had a great Jubilee week, and that you didn't get rained on too much. It's been a quiet week for company news, but the pace is hotting up a bit next week.

Supermarket updates

We have news from two of our top supermarkets coming, starting with a first quarter update on Monday from Tesco (LSE: TSCO). As it's the first after a year that ended slightly disappointingly, it will be a very important update too.

Warren Buffett certainly likes Tesco, and you can read about his thoughts in the free Motley Fool report "The One UK Share Warren Buffett Loves". The price has fallen further since Buffett topped up his holding, and with the shares hovering around £3, the forecast dividend is now up to 5.1%. Think that's a buy? You're in good company if you do.

J Sainsbury (LSE: SBRY) will follow with a first-quarter update on Wednesday, and hopefully it will lend support to current forecasts for an even stronger dividend than Tesco's. With modest growth in earnings expected for the year ending March 2013, the 288p share price bumps the prospective yield up to 5.8%.

Nice dividends from telecoms

There's some telecoms related news coming too, with Tuesday bringing us interim results from Alternative Networks (LSE: AN). A pre-close update at the end of March suggested a "robust" half year, with "continued high levels of cash generation and strengthening gross margins", and market share is apparently growing nicely.

I featured Alternative Networks in my recent look at the telecoms sector, after noting that most telecoms companies are turning to organic growth and targeting dividend improvements these days. If you want to know what other sectors the Motley Fool's analysts think are strong this year, check out our "Top Sectors of 2012" report, which is also free.

Preliminary results are due from Carphone Warehouse (LSE: CPW) on Thursday (and I do love the way the firm has hung on to that anachronistic name). There's a fall in earnings forecast, in the year the company divested itself of its share in Best Buy. But the latest pre-close update was positive, and the current 132p price puts the shares on a forecast dividend yield of 3.6%.

An airline set for recovery?

Aviation is a business that many investors steer clear of, and it is a tough one to be in -- airlines can't really compete on much else than price, and they're at the mercy of uncontrollable fuel costs.

One short-haul airline whose service people are not constantly moaning about, Flybe (LSE: FLYB), will release full-year results on Monday. There's a loss forecast, and a return to profits is not expected before the year to March 2014, but could there be pickings here for recovery investors? It's not my game, but there will be some who like the challenge.

Health and property

There's an interesting prospect coming up on Thursday, in the form of interim results from Halma (LSE: HLMA). Halma is in the health and safety business, with divisions focusing on health, hazard detection, and industrial safety. With a share price of 392p, there's only a 2.6% dividend forecast, but that's on strong earnings growth and it's in a business that surely has a good long term future.

If you think there's a decent recovery in business property to come, and see it as a good long term investment, you you should keep your eyes open for Monday's full year result's from Workspace Group (LSE: WKP). Workspace provides business premises for small and medium sized enterprises across London, and looks like it's on for a 4% dividend, set to rise to 5% over the next two years.

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Notable announcements next week:

Monday: Andor Technology, Falkland Islands Holdings, Flybe Group, Latchways, Tesco

Tuesday: Alternative Networks, BAA, Carclo, CML Microsystems, Findel, Gooch & Housego, Kewill, Oxford Instruments, Park Group, Record, RPC Group, Spirit Pub Company, Workspace Group

Wednesday: Advanced Computer Software Group, Creston, Hyder Consulting, Polar Capital Holdings, Sainsbury (J), Sepura, WPP Group

Thursday: Atkins (WS), Carphone Warehouse Group, Consort Medical, Halma, IG Group Holdings, Mulberry Group, PZ Cussons, Wincanton, WS Atkins

Friday: No major announcements

Fool comment on this week's news:

> Alan does not own any shares mentioned in this article. The Motley Fool owns shares in PZ Cussons and Tesco.

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Comments

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Luniversal 08 Jun 2012 , 8:21pm

Also a trading statement from Premier Farnell on Thursday.

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