The Week Ahead: Telecity to show earnings strength but risks loom

Today

Telecity kicks off the week with the release of its full-year results, and Liberum Capital is expecting a strong set of numbers from the data centre operator. The broker's analysts are predicting its earnings-per-share will have risen to 24p, while they also note that last November the group said it planned to start paying a dividend this year.

However, they do warn of a number of upcoming risks that are not in the share price, predicting – among other headwinds – a pricing growth slowdown and increasing competition.

Results/Updates: Kofax, Monitise and Telecity.

Tomorrow

Could InterContinental's investors be in line for a treat on Tuesday? Many in the City believe the strength of the hotel group's balance sheet means additional cash returns could be on the horizon, either through a share buyback or an increase to the dividend, and tomorrow's results may provide a good opportunity.

In terms of the numbers, market expectations are for last year's operating earnings to total $544m (£345m), which would be a year-on-year jump of over 20 per cent. Panmure Gordon's analysts also expect the company to be upbeat on how 2012 has started, highlighting encouraging recent data from the hotel industry in the US.

Results/Updates: Fidessa, Hargreaves Services, InterContinental Hotels, Pennon and Yell.

Wednesday

Since dropping to an eight-month low just before Christmas, Sports Direct has been on the rise ever since. The retailer announces its third-quarter update on Wednesday and is expected to reveal that its retail sales growth – especially in the UK – has continued to be strong.

Singer Capital Markets believes the group could have managed a rise of as much as 13 per cent, although the broker warns that the performance of its brands and its newly acquired chains Cruise and USC will be rather less impressive.

Also in focus on Wednesday will be Domino's, with the pizza delivery company announcing its preliminary results, and Collins Stewart's Wayne Brown is not expecting major upgrades given the firm's in-line trading update at the start of the year.

In terms of the details, the analyst believes margin growth will not be as strong as Domino's has managed before, while he also warns that this year "could prove equally challenging" considering the current difficulties facing consumers.

Results/Updates: Domino's Pizza, Morgan Crucible, Thorntons, Sports Direct.

Thursday

It looks set to be a busy week for BAE Systems. Before the arms dealer's full-year results on Thursday there is the important matter of President Obama's budget request, which is due to be published today, and given that the US is BAE's largest market, comments on defence spending will be closely watched.

Hit by military budget cuts, Espirito Santo is expecting the group's revenues to have dropped nearly 12 per cent over 2011 to £19.8bn, although the broker believes the figures will "establish a template for resumed earnings growth from 2012 onwards".

Thursday is also Gavin Darby's first set of results as boss of Cable & Wireless Worldwide (CWW), with the troubled telecoms group unveiling its interim management statement. Former Vodafone executive Mr Darby was appointed to return CWW to profitable growth, but may end up fending off speculation of a £700m bid from his old employer.

Results/Updates: African Barrick Gold, BAE Systems, Cable & Wireless Worldwide, Halma, Kingfisher, Ladbrokes, Reed Elsevier and Talvivaara.

Friday

Having released an update little more than a month ago – when the engineer pleased the market by estimating its adjusted operating profit last year will have jumped 40 per cent – there should be few extra surprises from Spectris' preliminary results on Friday.

Despite having spent £360m on acquisitions, Numis Securities' Scott Cagehin still believes the group will finish the year with net debt of £340m, although the analyst also predicts that 2012 will see "a return to more normal sales growth ... as it starts to face tougher comparatives".

Results/Updates: Anglo American, S&U, Severn Trent and Spectris.

Economics Diary

TODAY CML regulated mortgage survey.

TOMORROW Consumer price index (CPI); Eurozone industrial production; Retail price index; RICS house price balance; US business inventories; US import prices.

WEDNESDAY Average weekly earnings data; Bank of England inflation report; Eurozone trade balance; Unemployment data; US Federal Open Market Committee minutes; US industrial production; US MBA mortgage applications.

THURSDAY European Central Bank monthly report; US housing starts; US initial jobless claims; US producer price index.

FRIDAY Eurozone current account; Retail sales; US CPI.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent