The drip-feeding of major fourth-quarter results will continue in the coming week, notably from the oil and the drug sectors again.
After Royal Dutch Shell PLC (LON:RDSA) saw its earnings slightly miss expectations last week, despite the recent recovery in the oil price, blue chip energy peer BP PLC (LON:BP.) could please on Tuesday as its recent quarterly updates have proved a little disappointing.
Investors will be hoping that the oil giant’s fourth quarter replacement cost profit will improve on the previous quarter, and for the full-year overall the group should reverse the previous year’s losses as big write-downs should not feature again.
In a preview of the numbers, analysts at the Share Centre said: “Investors expect dividends to be maintained while going forward the view from management could become a bit more positive with the possibility of big oil companies once again thinking about expanding capital expenditure.”
Meanwhile, drugs blue chip GlaxoSmithKline will unveil its fourth-quarter numbers on Wednesday, hot on the heels of those from FTSE 100 peer AstraZeneca PLC (LON:AZN).
Like Astra, the trend for Glaxo in recent years has been one of falling revenues due to increased generic competition, however, this year analysts expect to see a jump in sales as a direct result of sterling’s weakness since the Brexit vote.
Analysts at Deutsche Bank expect Glaxo to deliver earnings per share growth, at constant exchange rates, at the top-end of its 11%-12% growth guidance.
Investors will also be looking out for progress on the drugs firms cost cutting programmes, news on R&D projects, along with any reaction to the new US administration’s rhetoric on controlling drug prices.
Knee bends ...
Elsewhere in the medical world, orthopaedic products group Smith & Nephew (LON:SN.) will report its fourth-quarter figures on Wednesday, with investors hoping the firm will build on the momentum from the previous three months.
S&N reported third quarter underlying revenue growth of 2%, helped by a 6% growth rate in emerging markets as its China business, which had experienced tough market conditions, returned to growth.
Food ingredients firm Tate & Lyle PLC (LON:TATE) will also update the market on Thursday, with investors keenest to hear about its management's’ thoughts about the implications of new US president Donald Trump’s trade barrier plans for its Mexican business.
Overall, Deutsche Bank analysts expect Tate to issue a relatively upbeat third-quarter trading update “highlighting strong profit growth, supported by ongoing strong business conditions in Bulk” sweeteners and foreign exchange factors.
Significant announcements expected
Monday
Finals: Randgold Resources PLC (LON:RRS)
Trading update: Gem Diamonds Limited(LON:GEMD)
Tuesday
Finals: BP PLC (LON:BP.), Plus 500 Holdings Limited (LON:PLUS), RM PLC (LON:RM.), St Modwen Properties (LON:SMP)
Interims: Mattioli Woods PLC (LON:MTW)
Trading updates: Bellway PLC (LON:BWY), UDG Healthcare Group PLC (LON:UDG)
Wednesday
Finals: GlaxoSmithKline PLC (LON:GSK), Rio Tinto PLC (LON:RIO), Smurfitt Kappa (LON:SKG), Tullow Oil PLC (LON:TLW)
Interims: Dunelm Group PLC (LON:DNLM), Hargreaves Lansdown PLC (LON:HL.), Sophos Group, PLC (LON:SOPH), UK Commercial Property Trust PLC (LON:UKCM)
Trading updates: Severn Trent PLC (LON:SVT), Victrex PLC (LON:VTX)
Thursday
Trading updates: Dairy Crest Group PLC (LON:DCG), Enterprise Inns PLC (LON:ETI); Grainger PLC (LON:GRI), Pennon Group PLC (LON:PNN), Tate & Lyle PLC (LON:TATE), Thomas Cook Group PLC (LON:TCG)
Interims: Ashmore group PLC (LON:ASHM), Frontier Developments PLC (LON:FDEV), InnovaDeRM PLC (LON:IDP)
Finals: Smith & Nephew PLC (LON:SN.), Henderson Group PLC (LON:HGG)
Friday
Trading update: Electrocomponents PLC (LON:ECM)