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The Markets
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Pharma & Biotech

Tuesday's agenda: James Bond to boost Cineworld's third quarter

Kingfisher and Cineworld will update on their respective third quarters on Tuesday

B&Q, Brico and Screwfix owner Kingfisher reports its third quarter results on Tuesday.

French same store sales are expected to prove broadly flat, having gained by 1.3% in the second quarter while UK same store sales could prove similar to the second quarter at around 5.5%.

Investors will be keen to see how its Screwfix business is getting on, and whether the trend of consumers using tradesman and not DIY is still persisting.

Any news on further store closures at its B&Q chain, or news on its turnaround plan will be keenly followed.

Keith Bowman at Hargreaves Lansdown, said: “Adverse currency movements may have dragged further on profits, whilst an additional update on the DIY retailer’s ‘One Kingfisher’ strategic plan could be forthcoming.”

Elsewhere, a generally uninspiring list of film releases in the third quarter are unlikely to dampen the results of Cineworld according to Numis Securities.

The broker reckons the firm will be boosted by average prices, which rose 8% in the first half, when it reports its third quarter update on Tuesday

Despite the dearth of blockbusters, the release of the latest in the James Bond franchise, Spectre, is expected to have helped slowing admissions rates.

The film, which broke box office records by becoming the highest grossing film on a Tuesday, took in £6.3mln beating Skyfall’s opening day of £6.2mln in 2012.

The unusual decision to release the film on a Monday paid off for the film and UK market box office, which saw admissions up by 60% over the last six weekends.

This should ensure Cineworld’s admissions growth is much higher than the 1.6% of the first half, Numis said.

“In a slower market in third quarter, we would expect Cineworld to perform better against its peers, in admission terms, largely due to an estimated 30% of Cineworld’s admissions being subscription members,” it added.

Significant announcements expected:

Final: Paragon Group (LON:PAG), Renew Holdings (LON:RNWH), Shaftesbury (LON:SHB), Greencore Group (LON:GNC), Mitchells & Butlers (LON:MAB), Compass Group (LON:CPG)

Interim: AFI Development (LON:AFRB), Signet Jewelers (LON:SIG), De La Rue (LON:DLAR), Pets at Home Group (LON:PETS), CML Microsystems (LON:CML), Severfield (LON:SFR), Babcock International Group (LON:BAB), Creston (LON:CRE), Telecom plus (LON:TEP), AO World (LON:AO.)

Trading statement: Kingfisher (LON:KGF), Intertek Group (LON:ITRK), Cineworld (LON:CINE)

Economic: US – Durable goods orders, GDP, consumer confidence

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