Like many others last week, we were expecting ASOS to report final results (in its last update, the company said the release would be on the 12th), which never came. However, after sending off an email, ASOS confirmed the release is, in fact, set for October 19, the date listed on its financial calendar.
Elsewhere, we are watching IAG and InterContinental Hotels this upcoming week.
International Consolidated Airlines (IAG)
- IAG began to climb a couple of weeks ago after touching a low of 90p and has continued to rise despite the overall market slide.
- Last week the company said Q3 profits were stronger than anticipated during the summer and forward bookings show no indication of weakness.
- Its shares are now at 109.86p, and over the long term, we like the stock.
- With the dollar strengthening significantly, British Airways should benefit from the potential transatlantic demand.
- Traffic to the British Airways site continues to rise following the pandemic low, and Google search interest for “Flight to London” in the US has significantly increased since the start of 2022.
- ASOS will report its full-year results on Wednesday, October 19.
- ASOS shares are down 78% in 2022 as soaring inflation and the cost of living crisis dampened consumer spending.
- In its September trading update, ASOS said it experienced good growth in June and July, but sales in August were weaker than anticipated, with full-year sales expected to be “in the range of market expectations” and profit anticipated to be around the bottom end of company guidance.
- According to MoPh Markets tracking of Twitter mentions, demand has stabilised at lows in recent weeks, while web traffic has risen in the last few months.
InterContinental Hotels (IHG)
- IHG will release a third-quarter trading update to September 30 on Friday, October 21.
- The company’s shares are down almost 10% in 2022.
- However, given the recent positive updates from airlines such as IAG, we could see the company provide a better-than-expected update.
- In addition, visits to the IHG website have soared, hitting 20 million in August, before a slight decline in September, according to Semrush.