The week ahead: US interest rates, Micro Focus, Bellway, Carpetright
9th December 2016 16:14
by Lee Wild from interactive investor
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As the City starts to wind down for the festive season, company reports will be noticeably thin on the ground. Keep your eyes peeled for news from Micro Focus and the US Fed.
Monday 12 December
AGM/EGM
Concha
Tuesday 13 December
There should be no surprises at housebuilder
AGM Tuesday, given we had full-year results and an update in October, according to analysts at Peel Hunt.brought us up to speed six weeks ago, too, and finance director Neil Page and chief executive Wilf Walsh have been buying shares since at 200p or less.
We already know that UK like-for-like sales were down 2.9% in the 25 weeks to 22 October, a sharp deterioration from the 1% decline in the first weight weeks.
So Peel Hunt expects interim results to show a decline in half-year pre-tax profit to £5.7 million from £9 million a year ago. That reflects a decline in gross margin of 200 basis points as the floorings giant battles competitors.
Trading statement
Begbies Traynor, Zytronic, Hollywood Bowl Group, Pressure Technologies
AGM/EGM
Tristel, Bellway, Ediston Property Investment Company
Wednesday 14 December
The Federal Reserve's two-day policy meeting concludes Thursday, and rate-setters are widely-tipped to raise borrowing costs by a quarter-point to a target range of 0.5-0.75%.
If they do - and few doubt they will - it'll be a year since the last hike and only the second in a decade. But because a move this time is so widely expected, the focus is likely to be more on hints as to the pace of future hikes.
Currently, markets are pricing in three further 25-basis point increases during 2017 as Donald Trump's policies are tipped to trigger an increase both in economic growth and inflation.
Soon to be one of the world's largest infrastructure software businesses,
will release it's first results after announcing its acquisition of Hewlett Packard Enterprise's Software Business Segment (HPES) on Wednesday.The deal is expected to close by the third quarter of 2017, but results from Hewlett Packard last month showed the software business was "moving along the expected path in a reassuring fashion", Numis analyst David Toms said at the time. Margins were improving and turnover was stable.
The broker still has his target price for the Newbury-based tech company under review, but now reckons his forecasts are conservative. Toms has pencilled in $1.4 billion of sales for the 2017 financial year, with pre-tax profit of $547.6 million and earnings per share of 174 cents, representing growth of 10%/26%/18% respectively.
Earnings is expected to grow by 6-8% the year after, although revenue will be stagnant.
Micro Focus's market value has swelled by 60% over the last year, and investors will be hoping they are in for a repeat.
Trading statement
Micro Focus, Dixons Carphone, FreeAgent Holdings, John Wood Group
AGM/EGM
Bowleven, Orchard Funding Group, Mobile Streams
Thursday 15 December
Trading statement
Falanx Group, Centrica, PZ Cussons, Petrofac, Go-Ahead Group
AGM/EGM
Sareum Holdings, Tiso Blackstar, Innovaderma, Gunsynd, GCM Resources, Leaf Clean Energy Company
Friday 16 December
Trading statement
Polar Capital Technology Trust
AGM/EGM
Upland Resources
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.