Friday preview: Hays update, Delta Air Lines results eyed

(Sharecast News) - On Friday, recruiter Hays will publish a trading update for the quarter to 30 June, while Delta Air Lines will release quarterly results in the US. UBS said it expects a fourth-quarter LFL gross decline of 5% year-on-year at Hays, in line with Visible Alpha consensus for a 6% decline, following falls of 8% in Q3 and 10% in Q2, as net fee declines ease in an uncertain macro/geopolitical environment.

"Permanent hiring remains under more pressure with low conversion of offers to placements, while Temp/Contracting trends have been increasingly more resilient," the bank said.

It noted that FY26 adjusted EBITA consensus currently sits at around £45m, i.e. flat year-on-year as ongoing cost savings offset top-line pressures.

"After significant headcount reductions already, we would expect headcount to be broadly stable from here as Hays focus on driving productivity in still-challenging markets," UBS said. "Beyond the financials, we expect investor questions to focus on the group's strategic changes after Hays' recent decision to sell operations in six European countries and plans to exit seven further markets."

UBS pointed out that Hays currently trades on a trough multiple of 0.7x EV/GP - versus a typical through-cycle range of 1.0-2.6x - suggesting that investors continue to price in severe further earnings pressure as debates persist around potential market disruption risks and the scope for profit recovery.

On the macroeconomic calendar, German inflation figures for June are due at 0700 BST.