Looking Forward - week beginning 12/05/2014
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The earnings season continues this week, with a variety of notable companies set to take centre stage, with companies including Lonmin having kicked things off today (12th May).
Paddy Power, TUI Travel, Cisco, Hilton Food, Dixons, Bovis Homes and John Menzies are also set to feature this week.
Meanwhile, Macy’s and Walmart will also report this week, ahead of a series of other US-based retailers set to update the market next week.
Platinum producer, Lonmin, reported a decline in revenue and earnings for the six months to 21st March, as the long-running wage strike in South Africa took its toll.
Revenue came in at $578m, down from $735m in the same period last year; and operating profit was $34m, down from $93m last year. Lonmin, whose shares are currently up around 1%, expects to update the market with more details on outlook once the strike has ended.
Tomorrow will see Paddy Power and TUI Travel among companies to update the market.
Regarding Paddy Power, the recent government controls on the sector (including the tax hike on fixed-odds betting machines) have been in focus of late. Given that the changes are set to invariably eat into profits, tomorrow’s focus is likely to be on any moves that the company is looking to take in a bid to counter the effects.
Companies reporting on Wednesday include Cisco, Hilton Food, and Macy’s.
There are expectations that US-based tech heavyweight Cisco is likely to report a decline in revenue and earnings for its third quarter, following a bit of a difficult time of late, which saw the company issue a sales and profit warning towards the end of last year.
That said, any decline in earnings is unlikely to be significant, given that the company has embarked on cost cutting measures to protect margins.
Walmart and Aviva are among companies reporting on Thursday.
Walmart takes centre stage this week, ahead of a series of market updates from several other US retailers next week. In contrast to declines in earnings during the company’s fourth quarter, expectations are for a moderate increase in Walmart’s first quarter earnings.
Bovis Homes and John Menzies will be among companies rounding the week off on Friday.
On the economics news front, watch out for US retail sales figures set to be released tomorrow (13th May). Additionally, Wednesday will see the release of the UK’s labour market report.