Earnings season is in full swing in the US and Europe with $4.3 trillion in market capitalisation reporting.

Of particular note there is a very busy session on Thursday which is set to be the biggest day of the year for the FTSE 100. Combined, the companies reporting on Thursday make up more than 27% of the FTSE 100 by index weighting.

Here’s our rundown of the biggest releases for the FTSE’s Super Thursday.

Anglo American (AAL) – H1 earnings (07:00, July 27th)

Chief executive Mark Cutifani said recently that the company is on course to meet production forecasts after an 8% rise in second quarter output. Barclays says earnings before nasties to come in at $4bn with net debt at $7bn.

The stock is on a tear in the last 18 months, climbing 380% from its January 2016 nadir. In the last month the stock is 15% higher as copper and iron ore prices climb and better Chinese data supports the wider mining sector.

All eyes are on the dividend: does Anglo think it reinstate the divi by the end of the year, when it expects to be able to return up to 40% of earnings to shareholders? Barclays thinks not, believing it will wait until the full-year results in February 2018.

 AAL_stock_weekly_July24th

Anglo American stock price has rallied 380% in 18 months but remains a long way off its all-time highs.

British American Tobacco (BAT) – H1 earnings (07:00, July 27th)

Falling cigarette sales is making British American Tobacco, the third largest stock listed on the FTSE, increasingly pivot towards vaping. But the vast bulk of earnings still come courtesy of tobacco products, sales of which are expected to continue to slow.

BAT has been one of the main beneficiaries of the sterling exchange rate since Brexit and a weaker pound will continue to help. The stock is more than 30% higher since just prior to the referendum last June.

Barclays reckons on organic sales growth of 2.6% on adjusted EBITDA of £2.855bn.  Consensus analyst estimates put EPS at 132p.

Diageo (DGE) - FY earnings (7:00, July 27th)

Foreign exchange tailwinds are expected to deliver continued support to earnings as the weaker pound flatters the bottom line. Analyst consensus is for 4.2% organic sales growth and for organic operating profit to climb by more than 5% with adjusted earnings per share of 105p.

Ivan Menezes, Diageo chief executive, is confident the company has distilled the right ingredients for growth. But after paying $1bn for George Clooney’s tequila brand (and a past for taking impairments on acquisitions), investors may wonder if the price of growth is right.

Lloyds Banking Group (LLOY) – Q2 earnings (07:00, July 27th)

Continued progress on return on capital and profits expected, particularly with improvements in net interest income and a reduction in impairment charges year-over-year. Analyst consensus is for revenues to hit $4.4bn and underlying profits just shy of £2bn. The Q1 report (at which it raised its FY2017 guidance) showed Lloyds generating an underlying return on tangible equity of 15.1%. Statutory return on equity was 8.8%. Before divis are paid its CET1 ratio was at 14.5%. There ought to be some impact on capital position because of completion of the MBNA purchase – around 80 basis points of capital.

Royal Dutch Shell (RDSA and RDSB) – Q2 earnings (07:00, July 27th)

Shell has ridden out the weakness in oil prices and is now enjoying an uptick in its fortunes. Three straight quarters of earnings in line or beating expectations has placed the stock on a firmer footing, with the A and B shares now up more than 50% from the trough of January 2016.

Oil prices have recovered since then but Shell has also been good at cutting out the fat. Net debt has ballooned thanks to the BG acquisition but gearing is expected to fall as the group offloads assets. Shell recently announced $1.23bn disposal of stake in Corrib gas field to pare down debt – it’s now disposed of around $23bn in assets since 2016, putting on course to meet $30bn target by the end of 2018.

Q1 earnings were well ahead of forecasts as Shell doubled profits but exuberance remains contained by efforts to shore up balance sheets after the oil price crashed. Barclays thinks earnings will be three times higher than last year. Shell accounts for about a tenth of the FTSE 100 by index weighting.

Schroders (SDR) – H1 earnings (07:00, July 27th)

Net flows may not look great with a one-off £5.6bn redemption last quarter likely to weigh. Barclays suggests assets under management will rise a modest 0.5% but RBC says the focus ought to be on profitability, not flows of capital. EPS is seen up a fifth from last year with the interim dividend up by a tenth. The stock is up 40% from the referendum last June but remains a little short of the 2015 peak.

Others reporting Thursday, July 27th

Wall Street, S&P 500, Nasdaq Earnings

Amazon.com (AMZN) – Q2/2017, EPS estimate 1.420

Intel Corp (INTC) – Q2/2017, EPS estimate 0.682

Mastercard (MA) – Q2/2017, EPS estimate 1.044

Raytheon (RTN) – Q2/2017, EPS estimate 1.760

Starbucks (SBUX) – Q3/2017, EPS estimate 0.551

Twitter (TWTR) – Q2/2017, EPS estimate 0.046

Verizon (VZ) – Q2/2017, EPS estimate 0.957

FTSE UK 100 Earnings

AstraZeneca (AZN) – interim results, EPS estimate 1.470

Countrywide (CWD) – interim results

Foxtons (FOXT) interim results

Just Eat (JE) – interim results

Sky (Sky) – final results

St James Place (STJ) – interim results, EPS estimate 0.232

Thomas Cook Group (TCG) – Q3/2017

Weir Group (WEIR) – interim results, EPS estimate 0.404

DAX Germany 30 Earnings

BASF SE (BAS) – Q2/2017, EPS estimate 1.681

Bayer AG (BAYN) – Q2/2017, EPS estimate 1.813

Deutsche Bank AG (DBK) – Q2/2017, EPS estimate 0.240

Volkswagen AG (VOW) – Q2/2017, EPS estimate 6.807

Source: Bloomberg

Read the weekly market preview for a list of the other major companies reporting.

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