London pre-open: Stocks to edge higher

28th Apr 2011 07:46

Shares are expected to open higher as investors digest a raft of company updates.US healthcare reform measures and competition resulting from the expiry of exclusive rights over its drugs hurt revenues at drug giant AstraZeneca in the first quarter.Pre-tax profits fell to $3.565bn from $3.857bn in the first quarter of 2010, on revenues that were down to $8.292bn from $8.576bn. "Our first quarter revenue performance reflects the anticipated generic competition in the US and Western Europe, which we partially mitigated by our continued double digit growth in Emerging Markets," said chief executive David Brennan. Underlying earnings from Anglo-Dutch oil giant Royal Dutch Shell topped market expectations in the first quarter of 2011.First quarter 2011 earnings excluding certain items and on a current cost of supplies basis were $6.3bn, compared with $4.8bn in the first quarter of 2010. Broker Charles Stanley had forecast adjusted earnings of $5.8bn."Our first quarter 2011 earnings have risen from year-ago levels, driven by higher industry margins and our own operating performance," said Shell's chief executive officer, Peter Voser.Financial Times publisher and education group Pearson said first quarter revenue increased 9%, boosted by its education and publishing division, and still expects margin and earnings growth in 2011. The group, which has recently acquired a string of acquisitions including US software firm Schoolnet, said revenue at constant currencies rose 10% to £1.03bn.