The week ahead: Tesco, Ashtead

Investors will be looking for good things from Tesco's first quarter results, and hope Ashtead's outlook does not disappoint.

Monday 12 June

Trading Statements

Servoca, MITIE, Motorpoint

AGM/EGM

Foresight Solar Fund

Tuesday 13 June

Equipment rental firm Ashtead has been a star performer in recent years. It did well after sterling crashed after the EU referendum – it does the lion's share of its business in the US.

And it was that exposure through its core Sunbelt division which provided a further lift when Donald Trump took the US presidency in November, with the promise of £1 trillion of infrastructure spend.

Now, it's expected to report a strong finish to the year ended 30 April, with Peel Hunt pencilling in fourth-quarter rental growth of 11% at Sunbelt, and 21% surge in earnings per share, driven in part by the strong dollar.

"Ashtead remains a key buy idea given the cyclical, structural and operational attractions," argues analyst Andrew Nussey, who rates Ashtead a 'buy' with £18 price target.

Trading Statements

Ashtead, Oxford Biodynamics, Abzena, Park Group, Trifast, Telecom plus, Halma, Iomart, CML Microsystems, FIH Group, Evgen Pharma, Merlin Entertainments, Capita

AGM/EGM

Capita, Action Hotels, Merlin Entertainments, Boston International, Paragon Entertainment

Wednesday 14 June

Trading Statements

Elegant Hotels Group, Bellway, Gym Group, Charles Stanley Group, Biffa, Severfield, Norcros, Castings, Enteq Upstream

AGM/EGM

Igas Energy, Futura Medical, Concepta, Davictus

Thursday 15 June

Trading statements

Drax, PZ Cussons, Safestore, Majestic Wine, Consort Medical

AGM/EGM

Metals Exploration, Serabi Mining, City Merchants High Yield Trust, Attraqt, Loopup

Friday 16 June

Tesco did well last year, but it's struggled to find any momentum in 2017, with the share price down over 12% in the past five months. If things are to improve, it'll have to impress with first-quarter results Friday.

Look for a 1.7% increase in group like-for-like sales in the 13 weeks to 27 May, says UBS. UK sales should be up 1.9%, largely in line with recent Kantar data.

"If validated, this would represent Tesco's strongest quarter in the past seven years, but the split between inflation and volume is likely to determine investor response," writes analyst Daniel Ekstein.

"Market share defenders such as Tesco are at their most effective when grinding out virtuous circle, volume-led strategies to generate operating leverage and make price reinvestments. The most effective tool to keep that circle spinning (and solidify Tesco's recovery) is price."

Trading statements

Record, Tesco

AGM/EGM

Gulf Keystone Petroleum, Ergomed

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.