Royal Mail FY 2022 Revenue Seen Rising While Profit Slips — Earnings Preview

By Joe Hoppe

Royal Mail PLC is scheduled to report results for fiscal 2022 on Thursday. Here’s what you need to know:
REVENUE FORECAST: The U.K. postal company is expected to report revenue for the year ended March 27 of around 12.83 billion pounds ($16.03 billion) according to a consensus of 12 analysts taken from FactSet, up from GBP12.64 billion a year prior.

NET PROFIT FORECAST: Royal Mail’s net profit is expected to slip to GBP528.3 million, from GBP620 million a year before, a consensus of nine analysts from FactSet says.
WHAT TO WATCH:
-DIVIDENDS: The board are expected to declare a full-year dividend of 18.9 pence a share, a consensus of six analysts from FactSet forecast, up from 10.0 pence a year prior.
-PARCEL VOLUMES: Parcel volume fell 7% in the third quarter of fiscal 2022, a trend that is likely to increase in the fourth quarter due to a strong comparative from a year prior. “We then expect volumes to stabilize, but weak real-disposable income may provide some risks to this,” Peel Hunt analyst Alexander Paterson says in a research note.
Write to Joe Hoppe at joseph.hoppe@wsj.com