3 FTSE 100 Shares for the Week Ahead
LONDON -- We're moving toward the end of December 2012 reporting season, but next week will be full of company news. It's mostly results from smaller companies, but we do have a few FTSE 100 firms due to report. And we'll have some interim updates creeping in, too.
Here are three FTSE 100 companies set to bring us news during the week ahead.
J Sainsbury will release a fourth-quarter trading statement on Tuesday ahead of full-year results due on May 8. Sainsbury's shares had a strong second half last year, gaining more than 25% between June and October to reach 360 pence. But the price has stagnated since then, closing at 354 pence yesterday -- but that's still more than 15% up on the year.
Sainsbury's has been steadily growing earnings and dividends right through the recession. The City expects earnings to grow a further 5% this year, and the dividend yield is currently just under the 5% mark. And further growth looks likely after the company's third-quarter update in January told us of a 3.9% rise in total sales, with like-for-like sales up 1.5%. And the Christmas trading period was a record one, helping Sainsbury's to its 32nd consecutive quarter of like-for-like growth.
Eurasian Natural Resources
Wednesday will bring us full-year results from Eurasian Natural Resources. The shares have slumped by 50% over the past 12 months -- but they have been lower, having recovered more than 25% since the start of the year to 343 pence.
The miner, specializing in iron and ferrous alloys, has been plagued with rising operational costs, falling prices, and rising debt. But there were bright points in February's fourth-quarter production report, with ferrochrome output up by 6.8%. Iron ore production was up a similar 6.8%, with total salable iron ore product up 11.3%.
Full-year forecasts do suggest a tough year for earnings, with a fall of 70% expected. But even that still puts the shares on a P/E of 11.5, with forecasts of recovering earnings for the next two years pushing the rating down. When we receive the results, many will be looking for the 2013 outlook.
On Wednesday we'll also have interim results from Smiths Group. Shares in the industrial engineer took off in November and have since climbed nearly 30% to 1,308 pence after the last interim update told us that underlying revenue was up across all of the firm's divisions and that headline operating profit was ahead of the previous year's. With the divisions covering the oil, gas, medical, and military markets, an economic upturn should serve the group well.
Smiths didn't really suffer during the recession, with only a minor earnings blip in 2009. The dividend held up, too. For the year ending July 2013, forecasts suggest a 3% rise in earnings per share, with a further 7% indicated for 2014. That puts the shares on a P/E of approximately 14 for this year, dropping to 13 for 2014. The dividend is expected to keep on rising, too, up about 5% this year and 6% next for respective yields of 3% and 3.2%.
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The article 3 FTSE 100 Shares for the Week Ahead originally appeared on Fool.com.Alan Oscroft does not own any shares mentioned in this article. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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