It’ll likely be the same old story for UK drugs giant AstraZeneca PLC (LON:AZN) when it publishes its third quarter report.
Product sales are likely to edge lower once again as loss of patents on its Crestor (statin) and Seroquel (bipolar) blockbuster drugs continue to have an impact on performance.
As has been the case in recent quarters, deals to sell-off ‘non-core’ parts of the business – such as a US$555mln deal to sell off its anaesthetics business to Aspen – should keep the coffers filled even as the blockbusters lose their hold on the market.
That can’t last forever though, so investors will be looking for updates on Astra’s pipeline, which looks to be in decent shape despite the failure of the much-hyped MYSTIC lung cancer trial over summer.
In short, the numbers themselves don’t really matter but the market will instead be looking at what lies beyond.
Argos to the rescue again, perhaps, for Sainsbury's
Sainsbury’s investors will be hoping the supermarket chain can surprise the markets once again on Thursday like it did with its first quarter update in August.
Back then Sainsbury’s said new addition Argos continued to perform well and grow its market share in the quarter which helped total retail sales jump 2.7% and the catalogue retailer will be in focus once again.
Argos had been the crutch keeping Sainsbury’s up for a little while, but the core business seems to be picking up again.
That said the company’s shares haven’t really done much in recent years as (until recently) low food price inflation and increasing competition weighed heavily.
Food prices are starting to rise again but rivals aren’t going anywhere. Like the rest of the ‘Big Four’ Sainsbury’s continues to lose market share to German discounters Aldi and Lidl.
To try to remain competitive Sainsbury’s has been looking to slash its cost base, including axing thousands of jobs, so that will be of interest too.
Pedal to the metal at Halfords
Elsewhere in the retail sector, bikes and car parts seller Halfords showed signs of being back on the right track in its last update, so shareholders will be hoping that the momentum has continued when the company issues its half-year results.
The trading update on 5 September covering the 20 weeks to 18 August revealed a particularly strong performance from the Cycling and Travel Solutions arms, but the Autocentres business remains in turnaround mode.
Chief executive Jill McDonald is off to run Marks & Spencer's clothing business - good luck with that one - so there probably will not be a lot of forward looking commentary in the results as Graham Stapleton, currently the head of Dixons Carphone's software business, will be taking over the helm in January and will have his own ideas about the future direction of the business.
Significant announcements expected
Trading update: AstraZeneca PLC (Q3) (LON:AZN), Aldermore Group PLC (Q3), (LON:ALD), Arrow Global Group PLC (Q3) (LON:ARW), Coca Cola HBC (Q3) (LON:CCH), IMI PLC (LON:IMI), Inmarsat Plc (Q3), (LON:ISAT), Beazley PLC (LON:BEZ), Derwent London PLC (LON:DLN), Informa PLC (LON:INF)
Interims: Dairy Crest Group PLC (LON:DCG), Halfords Group plc (LON:HFD). Prime People PLC (LON:PRP), Renewi PLC (LON:RWI), Sainsbury (J) PLC (LON:SSE), Wincanton PLC (LON:WIN)
Finals: Craneware PLC (LON:CRW), Gattaca Plc (LON:GATC), Go-Ahead Group PLC (LON:GOG)
Economic data: UK balance of trade data; US weekly jobless claims, US wholesale inventories
FTSE 100 ex-dividends: GlaxoSmithKline, Whitbread plc