This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
Rolls-Royce trading in-line, expects operating profit and cash flow in upper half of guidance range. Confident in increased 2019 Trent 7000 volumes after 2018 reduction. Expects mid-teens Civil Aerospace FY growth. Defence & ITP Aero in-line, Power Systems strong. Restructuring on-track. Begun to build Brexit inventory; transfering design approval for large aero engines to Germany.
Dixons Carphone H1 like-for-like revenues +2% (Q2 +4%), swings to £440m pre-tax loss (from £54m profit), free cash flow -33%, net debt +33%, £300m profit guidance unchanged, exceptional costs now seen £100m vs £30m, dividend rebased (-35.7%). Extra £200m extra capex over 3 years.
Superdry H1 revenue +3.1% YoY, underlying pre-tax profit -49%, interim dividend unchanged. Sales under pressure from unseasonably warm weather (£11m profit impact in Nov and similar impact expected in Dec). Warns on FY profits, now seen £55-70m.
British American Tobacco FY guidance unchanged; de-leveraging on track, committed to 65% div payout; Tobacco Heating/Vapour on track for £900m FY revenues.
Wood Group trading in-line, back to growth, $500m revenue synergies, cost synergy target now over $210m; awarded major EPC pact on US Gulf Coast; 2019 outlook favourable for earnings growth underpinned by more cost synergies, but oil & gas volatility may impact contract awards.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Code | Close | High | Low |
| ASHTEAD | AHT | 2.4% | 6.2% | -0.3% |
| WPP | WPP | 3.5% | 6.6% | 0.0% |
| CARPETRIGHT | CPR | 4.8% | 9.4% | 3.0% |
| SERCO | SRP | 1.6% | 3.1% | -1.2% |
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Prepared by Michael van Dulken, Head of Research