UK-based Marks and Spencer (GB:MKS) and SSE (GB:SSE) reported their Q4 and full-year earnings for 2023 yesterday. Despite tougher economic conditions, both companies reported good results, restoring shareholders’ confidence.
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Analysts have assigned a Hold rating to Marks and Spencer, whereas SSE has been given a Strong Buy rating.
The TipRanks Earnings Calendar for the UK market provides an excellent way to identify companies that have recently reported their earnings as well as those with upcoming earnings announcements. Investors can conduct further research on these stocks to enhance their decision-making process.
Let’s explore this further.
Marks and Spencer PLC
Marks and Spencer is a leading British retailer that specializes in offering a diverse range of clothing, food, and home products to its customers.
The company announced its full-year earnings for 2023 on May 24. Despite facing significant inflationary cost pressures that affected margins, the company achieved strong results, which pushed the shares higher by 12% in a day.
The company posted sales of £11.9 billion for the year, which is 9.6% higher than the previous year. The sales were mainly driven by its Clothing and Home segments, which increased by 11.5%. The profit after tax grew by 18% to £364.5 million, as compared to £309 million in 2022.
The results demonstrated the positive outcomes of the company’s restructuring initiatives aimed at reviving the brand and improving growth, which seem to be progressing well on track. The company is projecting modest revenue growth for 2024 with the aim of restoring its dividends to shareholders.
Marks and Spencer Share Price Forecast
According to TipRanks’ analyst consensus, MKS stock has a Hold rating. The stock has three Buy, five Hold, and one Sell recommendations.
The average share price forecast is 171.6p, which is almost 7% lower than the current price level.
SSE PLC
SSE is a leading renewable electricity generation and electricity network company in the UK.
The company released its annual earnings for the fiscal year 2023, with numbers surpassing expectations. The company experienced a nearly 89% jump in its adjusted profit, reaching £2.2 billion, primarily driven by higher gas and power prices. The company significantly intensified its investment plans in net zero infrastructure, allocating £18 billion for the period of five years until 2027 and a staggering £40 billion over the course of the decade.
SSE declared a final dividend of 67.7p for 2023, resulting in a total payout of 96.7p. This represents a 12.9% rise compared to the previous year. On the flip side, the shift towards renewable energy will come at a significant cost, resulting in a reduction in dividends for the upcoming year.
What is the Target Price for SSE PLC?
SSE stock has a Strong Buy rating on TipRanks, based on six Buy and two Hold recommendations.
The average target price is 2,037.14p, which implies an upside of 8.04% on the current trading price.
Conclusion
MKS and SSE are prominent stocks in the British market that attract media attention. The recent release of their financial results has reignited investor interest, resulting in an increase in their share prices.
