2 under-the-radar UK stocks to consider ahead of this week’s earnings reports

Earnings season is in full swing, with some of the UK’s biggest stocks having already reported this month. But I often find the best opportunities are in those stocks that seldom make the news.

With that in mind, I noticed two lesser-known FTSE 250 stocks with earnings due this week. One presents a compelling income opportunity while the other hints at recovery potential.

But are they worth considering?

Mitchells & Butlers

Pub group Mitchells & Butlers (LSE: MAB) is set to release its full-year results for the 52 weeks ended 27 September on Friday (28 November).Â

Analysts forecast full-year revenue of around Â£2.73bn and operating profit around Â£325mâÂ£327m, representing roughly 5% growth year-on-year. Shore Capital’s Greg Johnson has upgraded estimates to Â£325m, with EPS of around 30p (up around 14% year-on-year).

Performance has slowed this year as high inflation continues to suppress consumer spending. The company delivered 4.2% like-for-like sales growth for the full year, with food sales up 3.4% and drink sales rising 1.9%. Management confirmed in September that results should align with consensus expectations.

However, Q4 growth slowed to 3.1%, with some weakness in London venues and premium brands noted.

Inflation looks likely to be an ongoing challenge, expected to cost the pub operator around Â£130m next year (around 6%). The combination of wage increases and higher employer National Insurance contributions is a core contributor. Despite this, M&B said it’s confident it can navigate these issues through operational efficiencies and strategic investments.

Analysts are moderately confident, with around 66% giving the stock a Buy rating. The average 12-month price target is 347p, a 42.7% increase from current levels.

I don’t expect a big move after Friday’s results, so I see no reason to make big decisions today. However, if inflation eases, the recovery potential makes it one to consider in 2026.

Pennon Group

Water utility group Pennon GroupÂ (LSE: PNN) is set to report its Q2 2026 earnings Thursday (27 November). From what I can tell, investors anticipate a strong return to profitability after last year’s loss. Reports suggest that the company has implemented disciplined cost control and efficiency measures to improve performance.

A combination of increased metering and revised tariffs has helped improve revenue, though some income was deferred into fiscal 2027 to smooth customer billing. Despite elevated costs driven by a surge in water demand and network stress, efficiency gains in its capital programme helped offset these pressures.

Analysts now expect adjusted EBITDA to rise around 60% year-on-year to around Â£536m-Â£562m. While still ambitious, this is marginally lower than the prior 66%-67% growth guidance due to operational issues over the hot summer.

Although environmental incidents have reportedly halved since last year, the company still faces notable risks from pollution and storm overflow spills. Wastewater outcome delivery incentives are set to be neutral his quarter. However, after a major burst at the Dousland facility, water services faced some impact from network leaks and supply interruptions.

Still, the group’s on track to deliver its targeted 7% return on regulated equity (RORE) for Q2.

While analysts don’t expect much in the way of price gains, the stock’s 6.6% dividend yield makes it worth considering as part of a diversified income portfolio.

The post 2 under-the-radar UK stocks to consider ahead of this week’s earnings reports appeared first on The Motley Fool UK.

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Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Pennon Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.