As 2Q26 earnings United States (US) season kicks off, we look forward to the following local releases:Naspers/Prosus (FY26 Results): In a trading statement ahead of its FY26 results, the JSE-listed technology investor indicated that its Prosus subsidiary delivered more than $7.3 billion in revenue and $1.1 billion in Ecosystem adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), with every ecosystem now profitable. Core headline earnings per share (EPS) from continuing operations are expected to increase by between 20.8% and 27.8%, driven by strong growth across consolidated businesses and equity-accounted investments, most notably Tencent. Market expectations are for FY26 revenue of R10.1 billion, representing growth of 40.6%, and adjusted EPS of R5.99, representing a contraction of 67.5%.Hudaco Industries (1H26 Results): Posting its FY25 results, the group reported revenue of R8.7 billion (up 4.4%) and operating profit before fair value adjustments of R1.1 billion (up 8.9%), with headline earnings per share rising 15.7% to 2 327 cents. The board declared a final dividend of 770 cents per share, bringing the total dividends for the year to 1 120 cents per share (up 9.3%). Consensus estimates suggest 1H26 revenue of R4.1 billion, representing a decline of 15.5%.On the corporate actions front, Clicks Group, Afine Investments, Tiger Brands, Mr Price Group, Primary Health Properties, Novus Holdings and Yeboethu will trade ex-dividend on Wednesday, 1 July 2026. With the US 2Q26 earnings season still at the outset, five S&P 500 companies have reported results so far. To date, 80% have beaten earnings expectations, while 60% have reported revenue ahead of consensus estimates. While still early in the reporting season, these results suggest a solid start relative to market expectations. In the US, we look forward to releases from:Nike (4Q26 Results): Posting its 3Q26 figures, the sportswear giant reported revenue of $11.3 billion, flat on a reported basis and down 3.0% on a currency-neutral basis, with wholesale revenue up 5.0% to $6.5 billion while NIKE Direct revenue fell 4.0% to $4.5 billion. The gross margin contracted 130-basis points to 40.2%, primarily due to higher tariffs in North America, and diluted earnings per share declined 35.0% to $0.35. Management noted that “Win Now actions will continue to impact results over the balance of the calendar year” while expressing confidence in positioning the company for profitable growth over the long term. Analyst forecasts indicate 4Q26 revenue of $10.8 billion, representing a decline of 2.3%, and adjusted EPS of $0.12, representing a contraction of 14.3%.Tesla (2Q26 Results): Posting its 1Q26 results, the electric vehicle (EV) manufacturer reported total revenue of $22.4 billion (up 16.0%) and GAAP operating income of $941 million. Management expects volume production of Cybercab and the Tesla Semi to commence in 2026, while preparations for the first large-scale Optimus factory will begin in Q2. Street consensus points to 2Q26 revenue of $24.6 billion, representing growth of 9.5%, and adjusted EPS of $0.43, representing growth of 8.3%.We don’t expect any major releases from the Europe or the Asia-Pacific region Economics Weekly – Factory-gate pressures rebuild Domestic producer inflation has surged, pointing to re-emerging cost pressures at the factory gate. Headline producer inflation accelerated sharply to 7.8% year-on-year (y/y) in May, from 4.8% in April, with petroleum-related products being the largest contributor. To contextualise, in May last year, producer inflation was 0.1% y/y and ended 2025 at 2.9%. This increase largely underscores the passthrough of higher global oil prices amid heightened geopolitical tensions in the Middle East. Please see the full publications attached |
FNB Stockbroking and Portfolio Management, a part of the FirstRand Group. An Authorised Financial Services Provider. Member of the JSE. Reg. No. 1996/011732/07.
Any opinions/analysis/data contained herein are for informational purposes only and should not be considered advice (including but not limited to, financial, legal or tax) or a recommendation to invest in any security. Whilst care has been taken to ensure that the content herein is accurate, it may be obtained from sources which we believe to be reliable but is not guaranteed for correctness, accuracy or otherwise to be error-free. We do not assume liability for loss or damage arising from errors in, or from relying on, the information contained herein, irrespective of whether there has been any negligence by us, our affiliates, officers or employees (whether direct, indirect, consequential or inconsequential). Market and economic conditions are subject to rapid change. Any comments, opinions and analysis are rendered as of the date of publishing and may change without notice. Such changes may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Past performance is not indicative of future performances. Securities involve a degree of risk and are volatile instruments. | First National Bank | A division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20). |
