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Vodafone Group plc (VOD), Burberry Group plc (BRBY): Some FTSE 100 Plays For Next Week

Vodafone Group Plc (ADR) (NASDAQ:VOD)LONDON — Next week will be another busy one for full-year results from FTSE 100 companies with years ending on March 31. And we’ll have more company news in the weeks to come as well, as March also marks the first quarter for all those with December year-end dates. Here are three companies from the top-tier index that are set to report annual results next week.

Vodafone Group plc (LON:VOD)
Vodafone Group plc (LON:VOD) will release full-year results on May 21. Recent forecasts suggest earnings of about 15 pence per share, which would be pretty much flat compared with last year’s adjusted figure of 14.91 pence. But we should be seeing a rise in the dividend of about 9% to take it to a yield of about 5.3% on today’s share price of 197 pence.

But the main item on the Vodafone Group plc (LON:VOD) agenda at the moment is its relationship with Verizon Communications Inc. (NYSE:VZ) over its 45% share of Verizon Communications Inc. (NYSE:VZ) Wireless. Will the two telecoms giants merge? Will Vodafone Group plc (LON:VOD) sell its Verizon Wireless stake? Will we learn more on Tuesday?

One thing we will learn is what Vodafone Group plc (LON:VOD) intends to do with its £2.1 billion dividend from Verizon Wireless. It was announced on Tuesday, and Vodafone Group plc (LON:VOD) said it will reveal its plans on results day.

Marks & Spencer
We’ll also have full-year results from Marks & Spencer on Tuesday. Despite an uncertain winter, the M&S share price has been picking up nicely since the spring months came round. And at 449 pence, it’s now up 27% over the past 12 months — pretty much bang on the FTSE.

Judging by previous quarterly updates, full-year sales should be up a bit, although margin pressure from intense competition in a tough environment is expected to result in a fall in pre-tax profit of around 7% to 8%, with a similar fall expected in earnings per share.

But last year’s dividend was well covered, and it seems likely that it will be maintained at last year’s level of 17 pence per share — the interim dividend was unchanged at 6.2 pence. On the current price, 17 pence would provide a yield of 3.9%, with the shares on a price-to-earnings ratio of 13.7.

To complete the trio due to report on Tuesday, Burberry Group plc (LON:BRBY) will also bring us full-year results that day. Burberry Group plc (LON:BRBY) shareholders have not had a good year after a crash in the share price last September. Since then, the price has recovered somewhat, but it has still made no overall progress over the past 12 months.

In April’s second-half trading update, the fashion purveyor told us of a 9% rise in revenue to £1.1 billion, with underlying retail revenue up 13% to £840 million and wholesale revenue down 3% to £220 million. Retail now accounts for 75% of the group’s revenue.

Current City expectations look positive, with a 10% rise in earnings to 68 pence per share expected. But with the shares priced at 1,429 pence, that would suggest a P/E of 21, and to justify that we’ll need to see some good future growth — though analysts are predicting about 15% for the current year. At about 28 pence per share, the forecast dividend would yield just 2%.

The article 3 FTSE 100 Shares for the Week Ahead originally appeared on and is written by Alan Oscroft.

Alan Oscroft has no position in any stocks mentioned. The Motley Fool recommends Burberry Group and Vodafone.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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