Friday preview: Experian unveils quarterly results

11th Jul 2013 13:37

Experian's quarterly results on Friday are likely to reflect a softening in the growth of demand in Brazil, according to analysts. The global information group - which includes a blend of services such as business process outsourcing, software and IT, media and consumer internet - will report on the three months to end of June. The majority of the FTSE 100 firm's Latin American unit contributes to two fifths of the group's organic revenue growth and is the highest margin division in the group.Based on this, Canaccord Genuity said it believes the group appears to be in jeopardy as a result of economic weakness in Brazil. "We are cutting estimates to reflect Brazilian Real weakness and our view that demand growth in Brazil is set to soften," the broker said in a note last Thursday."We reduce our fiscal year 2014 and 2015 earnings per share to $0.90 and $0.98 resulting in our forecasts being 7.0% and 8.0% below consensus."Experian's Brazilian organic growth anticipated for 2014 of 8.0% has been gutted by sharp weakness in the Brazilian Real/ dollar rate - down by 10% since the company's March year-end. For the year to March 2013, Experian reported revenue growth of 10% and saw operating margins expand by 40 basis points to 26.6% which led to earnings growth of 9.0%.Free cash flow rose by 4.0% to $970m and net debt stood at $2.9bn.Also in focus on Friday will be the release of industrial production figures in Europe. In the past week, industrial production has showed signs of slowing in France, Germany and Britain. Friday July 12thINTERIM DIVIDEND PAYMENT DATEBritvic, Octopus Eclipse VCT 1, Smiths NewsQUARTERLY PAYMENT DATEAfrica Opportunity Fund Ltd., British Assets Trust, Real Estate Credit Investments PCC Ltd, Schlumberger Ltd., Yamana Gold Inc.INTERNATIONAL ECONOMIC ANNOUNCEMENTSIndustrial Production (EU) (10:00)IMSSExperianAGMSBurberry Group, Invesco Income Growth Trust, Thor MiningFINAL DIVIDEND PAYMENT DATE3i Infrastructure, Ashley (Laura) Holding, Booker Group, C&C Group, Densitron Technologies, European Residual Income Investments Cell, Harvey Nash Group, IFG Group, LondonMetric Property, Marks & Spencer Group, S & U, Sainsbury (J), TLA Worldwide , Tribal Group, WhitbreadRD