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Thursday’s agenda: AstraZeneca and Unilever on report card

Published: 12:38 23 Apr 2014 EDT

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The first quarter updates season gets into full swing with Footsie heavyweights AstraZeneca (LON:AZN) and Unilever (LON:ULVR) reporting on Thursday.

Still fresh from a reported £60bn bid from US giant Pfizer, Astra is expected to announce first quarter sales of US$6.33bn, versus a consensus forecast of US$6.37bn.

That’s the view of Swiss bank UBS, which predicts core operating profit of US$2bn (consensus: US$2.05bn), and basic core earnings per share (EPS) of US$1.18, a couple of cents below the consensus forecast.

The shares have jumped £2.55 to £40.36 in the past two days on hopes of a takeover from Viagra maker Pfizer.

Anglo-Dutch consumer goods giant Unilever has already tipped the wink that first quarter performance will be weak.

JP Morgan Cazenove reckons the group achieved 3.3% growth in like-like-like sales in the first quarter “driven by weak volumes of 2.0% (on the back of Easter timing, US weather and weak EM demand) coupled with weak pricing at 1.3%”.

“We see a potentially weakening trend in pricing (from +1.4% in Q413) as pricing up in emerging markets may be less straight forward than the market has been used to, and could be a source of concern for margin and top-line acceleration in emerging markets,” JPMorgan said.

“In developed markets, weaker pricing amid a tough retail and competitive environment could also lead to price declines (especially in household) and margin pressure.”

Premier Foods (LON:PFD) joins the interim reporters. Its shares have been hit again in recent weeks, this time by fears of the impact a UK grocery price war would have on its stable of household-name food brands.

Broker Jefferies counters that while the background may have changed for the worse, Premier is a company that has changed for the better and can handle the new environment.

The US broker initiated coverage of the stock with a 90p price target, a 50% uplift on the market price, and ‘buy’ rating ahead of Thursday’s interim figures.

Also in the calendar is Barclays’ (LON:BARC) annual general meeting (AGM) so expect headlines about its controversial remuneration scheme for bosses.

Significant announcements expected:

Interims: Unilever, AstraZeneca, Premier Foods, African Barrick Gold (LON:ABG).

Final results: Trap Oil (LON:TRAP).

Trading statements: Anglo American (LON:AAL), Travis Perkins (LON:TPK), Croda International (LON:CRDA), Computacenter (LON:CCC), Pace (LON:PIC), Kenmare Resources (LON:KMR), Berendsen (LON:BRSN).

 

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