Sheridan Admans, Investment Research Manager at The Share Centre, gives his thoughts on what to expect from companies announcing results w/c 17 June 2013.
Aggreko (Q2 trading update)
The group are set to report on second quarter sales and revenue, along with a trading update. Recently there have been concerns in the market over likely downgrades for the stock, leading to increased volatility in the share price. Trading reports over the last six months have been mixed, with the company pointing to subdued trading conditions. Investors will be hoping for some positive signs regarding the pipeline for future contracts. We currently list Aggreko as a HOLD
Also reporting: Whitbread (Q1 trading update) HOLD
Imagination Technologies (Q4 results)
The stock has had a tough time recently and the interim statement released in May stating weak licensing revenues did not help. Only a month on, we would not expect much to have changed but the management will probably reiterate that this is a temporary issue. The Pure brand of audio products has also seen a relatively flat performance in recent times; again this is expected to be temporary as new products are due to be launched. Another partial explanation in the weakness of the share price is competition from Arm Holding. Despite Imagination Technologies still being dominant in the video IP segment, investors will no doubt be seeking reassurances from the management. We currently list Imagination Technologies as a BUY
18 June, Consumer Price Indices, May 2013 – ONS
UK inflation, as measured by the CPI, fell to 2.4% in April from 2.8% the month before. The good news may be short lived, however, and the consensus is for inflation to rise again in the next few months. It may increase to a level more than a full percentage point above 2%, meaning that soon after he takes over as governor of the Bank of England Mark Carney may be forced to send a letter to the chancellor, detailing why inflation has risen so much above target.
19 June, Minutes of the Monetary Policy Committee Meeting held on 5 and 6 June – Bank of England
For four months in a row Mervyn King, David Miles and Paul Fisher at the MPC voted for additional QE, but were in the minority. It is unprecedented for the governor to be outvoted for so many successive meetings. In his last meeting as governor of the Bank of England, did Mervyn King vote in the minority again?
Other economic announcements:
EU Labour cost index, Q1 2013 – Eurostat
US Consumer Price Index, May 2013 – BLS
US Real Earnings, May 2013 – BLS
Producer Price Index, May 2013 – ONS
House Price Index , April 2013 – ONS
FOMC Meeting, June 18-19 – FED
Monthly Industrial Trends Survey – CBI
Retail Sales , May 2013 – ONS
Public Sector Finances, May 2013 – ONS