Tuesday preview: BP third-quarter results, RBA rate announcement due

(Sharecast News) - Tuesday will see the release of third-quarter results from oil giant BP and full-year numbers from Primark owner Associated British Foods. As far BP is concerned, UBS noted that the Q3 update on 14 October pointed to a weaker performance than it had expected, albeit one that was in line with consensus.

"We reduced our 3Q operating income estimate by 5% to $5.0bn driven mainly by decreases to our C&P estimates reflecting indications of weak oil trading and flat fuels margin," the bank said. "Our updated 3Q net income estimate of $2.0bn is 3% above consensus, and our CFFO ex-WC estimate of $6.6bn is 11% above."

UBS said it expects the company to maintain buybacks at $750m.

"We assume net debt (BP's definition) to remain broadly flat, and we expect market attention to turn towards the likely path of net debt reduction and discussions regarding the Bumerangue discovery."

Also on the UK corporate calendar, trading updates are due from flexible office group IWG and Domino's Pizza.

Across the pond, Q3 results from Advanced Micro Devices will be in focus.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said expectations are for revenue around $8.7bn and a gross margin near 54%.

"This follows a strong second quarter, driven by robust growth in the Client and Gaming segment," he said.

"Investor focus, however, remains on the data centre business, which faced challenges last quarter due to US export restrictions on certain AI chips. While licenses for these exports are expected to be approved, AMD's timeline for securing them and ramping up production remains somewhat uncertain, making this a key area to monitor.

"Looking ahead, AMD's partnership with OpenAI suggests its next-generation chips, expected next year, could be a viable option for some of AI's largest workloads. Execution at scale remains a challenge, and any updates on this collaboration will be closely watched."

Investors will also eye the latest policy announcement from the Reserve Bank of Australia, which is expected to keep rates on hold.

TD Securities said its base case is for the RBA to deliver its next cut in May, which is what the market is now anticipating.

Tuesday November 04

INTERIMS

AdvancedAdvT Limited NPV (DI)

INTERIM DIVIDEND PAYMENT DATE

Harworth Group, Johnson Service Group, Weir Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (US) (13:30)

Factory Orders (US) (15:00)

Q3

BP

FINALS

DotDigital Group, EnSilica , Focusrite, Smiths News

AGMS

Murray Income Trust

TRADING ANNOUNCEMENTS

International Workplace Group

FINAL DIVIDEND PAYMENT DATE

Alumasc Group, Brooks Macdonald Group