Travis Perkins Q1 Update – What to Expect

Travis Perkins (LON: TPK), a key player in the building materials industry, is poised to unveil its first-quarter trading update on April 25. This update, eagerly anticipated by investors and analysts, is expected to provide crucial insights into the company’s performance.

Investment bank Citi provided its preview in a recent note, telling investors that they expect the update to outline a continuation of its weak trading backdrop.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

In March, the company said its 2023 was impacted by “weak market conditions,” which saw revenue and profit fall. The company also declared a reduced full-year dividend.

Travis Perkins shares have fallen more than 10% this year and over 17% in the last 12 months of trading.

Citi also expects the company to reiterate its guidance for full-year 2024 operating profit in the range of around £160 million to £180 million, supporting current expectations. The analyst average consensus expectation for group adjusted operating profit, excluding property profits, is £179 million. In addition, the average analyst consensus for 2024 revenue is £4.84 billion.

Furthermore, the investment bank sees like-for-like sales decreasing by -4% for the group, reflecting annualisation of lower timber prices in merchanting and the ongoing caution on outlook.

Even so, overall, Citi said it expects the group’s cost actions to mitigate current market headwinds and the strategic exit from Toolstation France to improve investor sentiment, which they believe should drive a re-rating.