The Week Ahead: Three-month forecast to hold key for CSR shares

 

Today

 

The poor economic situation in the UK and the US was blamed by CSR in October when the chipmaker warned fourth-quarter revenues would miss market expectations. The group kicks off the week with its results for the period, and with Liberum Capital not expecting any further surprises – positive or negative – from the numbers, the broker's analysts believe how CSR's share price reacts will be all down to its forecast for the first three months of the new financial year.

They predict it will manage first-quarter sales of $210m, a 12 per cent fall from the previous quarter. They also say that while another share buyback is possible, "we believe management may wait until further into its current transition".

Results/Updates: CSR, International Ferro Metals, Lo-Q and XP Power.

Tomorrow

With Drax announcing its full-year results on Tuesday, Deutsche Bank expects its operating profits to have fallen over 20 per cent to £267m thanks largely to an increase in coal costs. However, the broker believes the Square Mile will be more interested in the government's decision, expected this spring, on whether to give further support for producing renewable electricity by co-firing biomass with coal, so any comments on this will be closely examined.

Results/Updates: Albemarle & Bond, Amec, Croda, Dechra Pharmaceuticals, Devro, Dragon Oil, Drax, Genus, Morgan Sindell, Rathbones and Segro.

Wednesday

The reporting season for the housebuilders continues with Barratt Developments' interim figures on Wednesday. The group expects operating profits over the period to have shot up 40 per cent, so a key factor will be whether it believes it can continue this level of growth for the rest of the year. Any insight on the state of the housing market will of course be scrutinised.

Results/Updates: Barratt Developments, Filtrona, Galliford Try, Hays, Logica, Micro Focus, Millennium & Copthorne Hotels, Rexam, St James's Place and Travis Perkins.

Thursday

After Imperial Tobacco released its first-quarter figures earlier in the month, it is British American Tobacco's turn to update the market on Thursday. Citigroup believes the group will announce earnings per share for the year of 194p, which would be a jump of 10.4 per cent from the previous 12 months.

The broker's analysts also expect operating earnings to have risen 9.2 per cent, although they point out this would be significantly lower if rival Japan Tobacco had not suffered severe supply disruption in the wake of the earthquake and tsunami in the country. They also believe BAT will be questioned on plain packaging laws – set to be introduced in Australia later this year – as well as the outlook for Japan, although they predict "little hard news" on both subjects.

Royal Bank of Scotland continues the run of results from the sector with its full-year numbers on Thursday. Shore Capital's Gary Greenwood expects it to reveal another statutory pre-tax loss, thanks partly to costs for restructuring and PPI mis-selling payouts. He predicts operating profits will have risen to £2.14bn from £1.91bn over the previous twelve months.

Results/Updates: Avocet Mining, Ashmore, Bodycote, British American Tobacco, Capita, Capital Shopping Centres, Centaur Media, Centrica, Colt, Go-Ahead, Informa, Kier, Lancashire, Mondi, New World Resources, Redrow, Royal Bank of Scotland, RSA, Sinclair IS Pharma and Wentworth Resources.

Friday

Lloyds, the other state-owned bank, reports full-year results this week, with boss Antonio Horta-Osorio at the helm after having missed the group's last update in November when he was on sick leave. One of the key areas of focus, according to Morgan Stanley's Chris Manners, will be impairment charges. The analyst is expecting that for the last three months of the year these will have risen to £2.3bn because of an increase in wholesale loan losses.

Results/Updates: Berendsen, Hammerson, Lloyds, New Britain Palm Oil, Rightmove and William Hill.

Economics Diary

TODAY Rightmove house price index.

TOMORROW Public sector net borrowing;

WEDNESDAY Bank of England Monetary Policy Committee minutes; Eurozone flash manufacturing PMI; Eurozone flash services PMI; Eurozone industrial new orders; US crude oil inventories; US existing home sales.

THURSDAY BBA mortgage approvals; CBI industrial order expectations; US unemployment claims.

FRIDAY Preliminary business investment data; Revised GDP.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Graduate Recruitment Resourcer

£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...

Recruitment Genius: Telesales Executive - OTE £32,000+

£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat