It was a busy week of earnings last week in both the US and UK. Airline IAG reported its third quarter results after releasing preliminary results a couple of weeks earlier, and another airline, Wizz Air (LON: WIZZ), will publish its first-half fiscal 2023 results on Wednesday, November 2, making it one of our three stocks to watch this week.
In addition, we have our eyes on Next (LON: NXT) and Sainsbury’s (LON: SBRY), who will also be providing updates:
Wizz Air (WIZ)
- As mentioned, Wizz Air will report first-half fiscal 2023 results on Wednesday, November 2.
- Several airlines have reported positive updates recently, mentioning that demand remains strong.
- If we look at Wizz Air’s website traffic as a sign of demand, we can expect the carrier to also report strong trends. Semrush states traffic is at its highest level, hitting around 9.68 million in October.
- While we see airline industry shares moving higher in general, we have no specific view of Wizz at this current time.
- Next PLC will also release a third-quarter update on Wednesday, November 2.
- NXT shares, like other clothing retailers (and stocks in general, really), have struggled this year, down almost 40%, as consumers relax spending due to the rising cost of living.
- Next said in its half-year update that August trade was below expectations, although September showed an improvement.
- Given that inflation is still hovering around its record highs, we don’t expect a significant change in demand.
- We lean slightly bearish ahead of the release.
J Sainsbury (SBRY)
- The day after WIZZ and NXT, supermarket Sainsbury’s will post its interim results.
- Despite shares of supermarkets usually being somewhat resilient during downturns, J Sainsbury has fallen over 31% in 2022.
- According to Which? in September, the business ranked below Aldi, Lidl, and Asda as the UK’s cheapest supermarket, above the likes of Tesco (LON: TSCO), Ocado (LON: OCDO), and Waitrose.
- In its Q1 trading statement, Sainsbury’s said it is doing everything it can to keep prices low while it maintained its FY22/23 underlying profit before tax outlook unchanged at between £630 million and £690 million.