Equity Briefing: easyJet, CVS Group and Netflix

Airline easyJet is due to release a third-quarter trading update, veterinary firm CVS Group will release a full-year update, and streaming giant Netflix will kick-off the earning season for Big Tech by releasing quarterly earnings later today.

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easyJet

Airline easyJet is scheduled to release a third-quarter trading update this morning. EasyJet said it only expected to operate 15% of its pre-pandemic capacity in the third quarter, barely an improvement from the 14% reported in the first half. Still, analysts are expecting easyJet to report third-quarter revenue of £206.4 million. This will be a huge improvement from the £7 million booked the year before when virtually all travel was off the table and it compares favourably to the £240.0 million in revenue booked during the entirety of the first half. Still, that would fall far short of the £1.76 billion booked in the third quarter of 2019, before the coronavirus had surfaced.

CVS Group

CVS Group is scheduled to release a trading update to provide an insight into its performance since its financial year came to a close at the end of June. The company, which runs veterinary outlets around the UK, said in March that like-for-like sales had grown 8.2% in the first eight months, with growth having accelerated since the end of the first half to position it well for the full year. It said it expected to beat market expectations for the full year, with results due to be released on Thursday September 23. Analysts are expecting annual revenue to jump to £500.5 million from £406.5 million but are forecasting a drop in adjusted Ebitda to £45.5 million from £71.0 million.

Netflix

Later today over in the US, streaming giant Netflix is due to kick-off earnings season for Big Tech by releasing its second-quarter results. Netflix is up against some extremely tough year ago comparisons. Streaming subscriptions surged by 10 million in Q2 2020 as people were forced into lockdown. Management at Netflix believe that a lot of demand for streaming was pulled forward to 2020, explaining why Netflix added just 4 million in Q1 2021 and why Netflix is guiding for just 1 million new subscribers in Q2 2021. Guidance for Q3 could start to normalise and investors will also be looking out for any news on its ambitions to push into gaming.

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