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It’s earnings season again, and this week is a big one for FTSE shares. We already got BP’s results today, tomorrow is Marks & Spencer (LSE: MKS) and on Thursday (6 November), we’ll hear from AstraZeneca, BT Group, Sainsbury’s, ITV and National Grid.
Let’s have a look at what analysts expect from three of these major British companies and what investors might weigh up.
Marks & Spencer
The major UK retailer will post its half-year results on 5 November — with a critical update. Its online operations were suspended earlier this year due to a cyber-attack, which means tomorrow’s results will show the full financial impact of that disruption.
Initial forecasts suggest an impact of around £290m but if the actual amount is significantly higher, the share price could take a hit.
Analysts expect flat revenue despite the online losses, with adjusted pre-tax profits as low as £108m. However, for the full year, analysts still expect a range of £580m-£660m.
The shares have recovered by roughly 20% over the past three months, which suggests investor confidence in the recovery is building.
That said, given the looming risk from the cyber-attack and its unknown longer-term impact, the results are likely to be a key test of confidence.
ITV
On 6 November, ITV will post a Q3 2025 trading update. Its share price dropped about 10% in October, pushing the dividend yield up to an attractive 7.2%.
Its dividend payout ratio is expected to stay around 56% of profits over the next three years, which would lift its return on equity (ROE) to around 18%. ROE measures how well a company is using its shareholder capital.
But the key risk is that traditional broadcasting is losing favour, and the digital arm — though improving — faces intense competition from larger US streaming platforms.
So while the yield is attractive and the ROE appears healthy, the structural shift in media is something to keep in mind.
National Grid
As one of the steadier names among FTSE shares, National Grid benefits from a regulated business model. With income linked to inflation, it offers excellent earnings visibility.
A pre-results update on 2 October flagged earnings per share (EPS) growth of 6%-8% expected in the first half, with a baseline EPS of 73.3p. Analysts expect 11% average earnings growth a year over the next three years.
Encouragingly, the company plans around £60bn of investment over the next five years in UK and US power infrastructure. However, this could be a risk to profits, particularly if government decisions change the business’s earnings prospects. Delays, cost overruns or regulatory tightening could impact cash flow and thus the attractiveness of the stock.
Final thoughts
While the above forecasts are broadly positive, the actual results could lead to volatility in the short term.
M&S in particular faces a big test given the cyber-attack implications, but could emerge as the biggest winner if the cost estimates were overblown. Its recovery has already been impressive, so it’s definitely one to consider for those chasing growth opportunities.
Meanwhile, ITV and National Grid have their own challenges. But for investors looking at income and dividend opportunities, the high yields mean both deserve consideration within the broader pool of FTSE shares.
