SHARE OF THE WEEK: Moonpig to reveal its full-year results, just three months out of FTSE 250 index, with analysts anticipating earnings gains
Moonpig will report its full-year results this Thursday, just three months after the card seller fell out of the FTSE 250 index.
The shares are 60 percent below their floating price of 130.6 pence, and investors will desperately wait for signs of a recovery.
The rising cost of living poses a problem for the online greetings and gifts business as consumer budgets are tight and confidence is low.
Other factors adding pressure to the company include postal strikes, which derailed delivery, and the end of the lockdown with the reopening of brick-and-mortar competition. Still, analysts expect an increase in earnings in difficult circumstances.
Moonpig reported an upbeat trading update in March following a record week of sales leading up to Mother’s Day.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Moonpig clearly comes into its own around key calendar events when people pay a higher price for personalized wishes.
“But for meaningful year-round sales growth, it’s going to have to work harder, as sales seem to be concentrated in the winter and spring when there are more events to celebrate with a card, and possibly an extra gift.” ‘
Investors will also be eager to see updates on Smartbox integration after Moonpig bought the gift experience company in 2022. The £124 million deal opened up opportunities for Moonpig to tap into the growing gift sector.