How to trade the AO World’s share price around Wednesday’s full-year results
AO World is set to release its full-year results on Wednesday. The online electrical retailer has undergone significant restructuring to improve its financial health and profitability. This overhaul, which included substantial cost-cutting measures, showed promising results in the company’s half-year report to September, with a pre-tax profit of £13 million compared to a £12 million loss in the previous year.
Despite this turnaround, AO World warned that annual sales were expected to decrease by approximately 10%. However, similar to its competitor Currys, the company may benefit from improved consumer confidence, potentially leading to increased spending on higher-priced items.
Investors will be particularly interested in any forward-looking statements from AO World regarding its sales projections for the upcoming fiscal year.
Analyst ratings for AO World
LSEG Data & Analytics shows a consensus analyst rating of between ‘buy’ for AO World – 2 strong buy, 2 buy, 1 hold and 1 sell – with the mean of estimates suggesting a long-term price target of 107.86 pence for the share, around 5% below its current price at 113 pence (as of 24 June 2024).
