(Bloomberg) -- European companies have navigated soaring costs, an energy crisis and the impact of the Ukraine war to deliver largely better-than-expected results so far this quarter. The last big batch of earnings this week will test this momentum. German consumer goods maker Henkel will show today how much it has been able to raise prices after industry bellwethers Reckitt and Unilever lifted their sales forecasts. Jewelry maker Pandora will be closely watched for news on prices and savings on Tuesday after an earnings beat by Hermes boosted the Danish company’s stock. Dutch payments firm Adyen will be under pressure to confirm its guidance on Thursday, following strong reports from rivals Worldline and Nexi.
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Earnings highlights to look out for this week:
Monday: Henkel (HEN3 GY) is scheduled to report at 7:30 a.m. CET. Customers of the German maker of home and personal care products are likely reluctant to accept price increases, which puts the company in a quandary going into the second half, according to Bloomberg Intelligence. Should it go all out for sales volume and risk missing its already lowered 9% to 11% adjusted Ebit margin goal, or should it push up prices again, putting longer-term growth at risk? “Usually it’s cheaper to maintain market share than buy it back,” says BI analyst Duncan Fox.
Tuesday: Pandora (PNDORA DC) is due to report before the market opens. Growth at the jewelry maker likely benefited from strengthened product offerings and inventory, store purchases in key North American locations and low China exposure, according to BI. The Danish company raised its full-year revenue guidance in May, and looks set for a solid 2022, BI’s Deborah Aitken says. Most closely watched will be savings and the company’s ability to raise prices via its product mix.
Wednesday: Carlsberg (CARLB DC) is due to report at 8 a.m. CET. The brewer raised its 2022 full-year outlook this week as higher material costs were offset by better beer sales in Asia and Europe. The Danish firm now expects “high single-digit growth” in operating profit, which suggests premium beverage sales have yet to be affected by rising prices, according to BI. Peer Heineken reported better-than-expected sales for the first half but cautioned that consumers will feel the pinch of price increases eventually.
Thursday: Adyen (ADYEN NA) is due to report at 7:30 a.m. CET. Investors piling back into tech stocks could be good news for the Dutch payments firm. The strong dollar, 40%-plus revenue and processed volume growth should see Adyen maintain its full-year outlook, according to BI. Adyen’s shares have been rising since June after a series of monthly declines, raising the bar ahead of its results, according to BI analysts Jonathan Tyce and Mar’Yana Vartsaba. Adyen’s growing presence in the US and the roll-out of new financial products bodes well for growth.
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