FTSE 100 and FTSE 250 shares – what to expect on the stock market next week


Among those currently scheduled to release results next week:

  • As always, subscriber growth is the one to watch at Netflix
  • Can Nestlé keep volumes growing despite having to raise prices?
  • We’ll see if Heineken‘s premium and non-alcoholic offerings can keep up the momentum

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FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:

*Events on which we will be updating investors.

Netflix – Sophie Lund-Yates, Equity Analyst

The market didn’t react kindly when Netflix lowered subscriber expectations for this quarter. The media giant expects to add 2.5m subscribers, down from 4m a year ago. It’s crucial Netflix hits this target. The group says the slowdown comes because of the timing of new content, and we’re cautiously optimistic it will be able to reach the much needed 2.5m figure.

The only other thing that will really move the dial is any talk of margins. Expectations have been lowered, largely because of unfavourable currency movements. This sort of thing can’t be helped, so we’ll have a close eye on content costs instead. Competition in the sector is at fever pitch, and being the go-to streamer of choice means spending big bucks. While a big content bill is to be expected, we’d like to see margin expectations of 19 – 20% are intact.

We’d also welcome further information on Netflix’s foray into gaming. Investing in this new area is one way to compete harder in the battle for our eyeballs. So far though, details are thin on the ground.

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Nestlé – Matt Britzman, Equity Analyst

Cost inflation and supply chain headwinds have been hurdles to overcome in recent trading periods. Nestle’s arguably more exposed than some, with a volume led strategy that means raising prices isn’t the favoured way to get revenues moving. Testament to management then, that performance has been steady. Last we heard, organic sales for 2022 are expected to grow around 5% and next week’s trading update should shed some light on whether that outlook remains intact.

Pricing rose 3.1% in the final quarter of last year, to offset some of the headwinds mentioned above. Increased input costs aren’t going anywhere, so further price rises could be on the cards. That’s ok in the short term and doesn’t seem to be having a major impact on volumes yet. But prolonged reliance on raising prices could start to eat into volumes down the line.

On a product level, coffee was the strongest contributor to organic growth last year. With brands like Nespresso and Starbucks, the group should be well placed to capture demand and progress on the rollout of Starbucks branded products to new areas will be one to watch.

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Heineken – Matt Britzman, Equity Analyst

2022 marks the second year in Heineken’s new strategy, EverGreen, as the group aims to future proof the business. A strong second half to last year, led by the performance of more premium brands like Moretti and Heineken, has given the group some momentum into 2022. We’ve been seeing this trend take shape for a while, as lower beer consumption in developed markets has been accompanied by a shift to more premium brands. The latter’s a trend that needs to continue, as Heineken looks to open back up its spending taps and focus on the premium portfolio.

Heineken’s non-alcohol offering has been posting double-digit growth, with Heineken 0.0 leading the way. 2022 will see the group expand its offerings in the more health-conscious beverage sector with products like Desperados Virgin Mojito and Lagunitas non-alcoholic IPA. Next week’s update will hopefully shed some light on how performance has been in what should be an exciting growth avenue.

The group’s unlikely to give any specifics on margins next week, but commentary on how rising costs are being managed will be watched closely. Inflation was expected to remain a ‘significant’ headwind in 2022, albeit one that was managed well last year.

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This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

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