Watchlist: Top UK Companies Reporting This Week

The FTSE started the week on a positive note after the Supreme Court issued its much-anticipated ruling on auto finance, providing relief to major lenders that the compensation scheme wouldn't be higher than current provisions. Lloyds led the index higher with a 6.6% rise at the opening after saying the ruling would not negatively impact its financials.

Looking forward, this week has several UK corporate earnings releases on the docket.

Notable FTSE 100 Constituents Reporting This Week

• BP (BP) - Tuesday, 5 August, Before market
• Fresnillo (FRES) - Tuesday, 5 August, Before market
• Diageo (DGE) - Tuesday, 5 August, Before market
• Smith & Nephew (SN) - Tuesday, 5 August, Before market
• Hiscox (HSX) - Wednesday, 6 August, Before market
• Tullow Oil (TLW) - Wednesday, 6 August, Before market
• Legal & General (LGEN) - Wednesday, 6 August, Before market
• Severn Trent (SVT) - Wednesday, 6 August, Before market
• Hikma Pharmaceuticals (HIK) - Thursday, 7 August, Before market
• Intercontinental Hotels (IHG) - Thursday, 7 August, Before market
• WPP (WPP) - Thursday, 7 August, Before market

Let’s take a look at the most prominent players.

BP Slowdown Due to Lower Oil Prices?

BP (BP) is expected to report to $0.12 per share from $0.17 for the same period last year. Sales are predicted to be 15% lower at $40.4 billion, in line with other majors reporting so far, due to lower crude prices.

The focus will likely be around the company's plans to cut costs as it refocuses on fossil fuels, and it will be an opportunity for analysts to ask about persistent rumours that the company could be in talks to be either taken over or merge with one of its rivals.

Fresnillo: Investor Focus on Production Costs

Fresnillo (FRES) issued a ahead of its earnings this week, reporting that its gold and silver production both increased 1% over the prior quarter and affirmed its guidance for the full year that it would produce 49-56 million ounces of silver this year.

The CEO also said that its gold production so far this year has been towards the top of guidance, which is for 525-580K ounces. Investors will likely be looking at production costs to see if it can capitalise on higher gold and silver prices.

Tariff Impact at Forefront of Diageo’s Earnings

Diageo (DGE) will provide its full-year results this week, as investors look for insight into consumer demand. According to estimates compiled by the company, over the last year, supported by continued strength in premium brands. The company's earnings are expected to dip to $1.62 per share from $1.73 a year ago. Investors will be interested in the company's outlook for its new fiscal year, particularly given the impact of tariffs. 

SNN Investors Concerned about China Exposure

Smith & Nephew (SNN) will update investors on its second-quarter earnings after trading update. After the company forecast revenue to grow 5% this year, investors will be looking for the momentum to continue, as well as an update on the tariff situation after forecasting a net impact from this item of $15-20 million. Traders might be concerned about the company's exposure to China, which it already warned about in its latest trading update.

WPP Weighed Down by Sluggish Economy

Analysts expected a challenging year for WPP (WPP) to continue, with the consensus compiled by the company showing an anticipatedfor the first half. The company is facing ongoing challenges in its key China market, combined with general apprehension about the economy, which has reduced the company's ad spending. Traders will likely be interested in potential insight into how AI is affecting the advertising industry and could impact WPP's bottom line going forward.