3 FTSE 100 Shares for the Week Ahead
LONDON -- With the reporting season in full swing, we have results from a number of FTSE 100 and FTSE 250 companies coming our way next week. To give you plenty of time to prepare, we're breaking them down for you into several alerts.
Here are three companies due to report full-year results next Wednesday, Feb. 20.
In November, an interim update from RSA Insurance Group told us of 4% growth in premiums over the nine months to September to 6.2 billion pounds. And the company was sufficiently confident to confirm its earlier guidance of investment income of about 500 million pounds for the year.
Results for the 12 months to December are expected by City analysts to show a 6% fall in earnings per share, putting the shares, currently priced at 132 pence, on a price-to-earnings ratio of less than 12. There's a dividend yield of about 7% forecast, too, which is one of the best on the market, and it looks pretty safe.
Forecasts for the next two years suggest rising earnings, taking the P/E down to just 9.5 by 2014. That definitely sounds to me like a share worth further investigation.
Things are looking good for packaging-manufacturer Rexam, whose shares have gained about 20% over the past 12 months to 455 pence. Earnings progress has been erratic over the past few years but has been generally upward. And though expectations for the year ending December suggest a 3% fall in earnings per share, there's 12% growth forecast for this year and about 9% for next. That takes the forward P/E down to less than 11 by 2014, and there are dividend yields of 3.5% to 4.2% predicted. So what are the prospects for Wednesday's announcement?
Well, November's interim update told us things were in line with the company's expectations, with 6% growth in global volume in the third quarter. The firm also told us that its plans to dispose of its personal-care business and return 370 million pounds to shareholders were on track, so we should look for further news of that, too.
Building-materials supplier Travis Perkins is another company bringing us full-year results on Wednesday, and shareholders have been enjoying decent rewards as the recovery in the construction sector has strengthened. The shares are up more than 30% over the past 12 months to 1,266 pence today.
And though there is no earnings growth expected for 2012, there's growth in the cards this year and next, with a modest but improving dividend yield also expected -- there's 2% penciled in for 2012. December's trading update revealed a 1.6% rise in turnover for the 11 months to November, though like-for-like sales were down 1.8%. That suggests that current 2012 expectations are probably realistic.
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