Thursday preview: Diageo releases third quarter interims

16th Apr 2014 14:19

UK beverages giant Diageo is expected to report revenue growth in its third quarter interims on Thursday.In its first half results the company reported weaker sales than analysts had forecast with a volume decline in Asia, Latin America and Nigeria. Emerging market volume was down 3% and net sales up just 1%.It was partially offset by a strong performance in US spirits and improvement in Western Europe."We do expect some top line improvement in the second half and our focus across the business on the six key performance drivers means that even though some markets may remain challenging, this business is in good shape for the medium and long term and we remain committed to achieving our performance ambition," the group said at the time. Numis predicts third quarter organic net sales growth of +1.6%, broadly in line with the second quarter's performance. The broker recommended a 'hold' rating and target price of 1,900."We expect another good performance in North America (40% of EBIT pre-central overheads), although North America is lapping tough (8%) comps and Emerging Markets softness and volatile currencies remain a concern," Numis said in a note on Wednesday. Investors will also be looking out for more details behind Diageo's bid to acquire a majority stake in India's United Spirits (USL). It is already the largest shareholder in USL with 28.8% and is now seeking to purchase an additional 26% stake. Thursday April 16thINTERNATIONAL ECONOMIC ANNOUNCEMENTSBloomberg Consumer Confidence (US) (14:45)Continuing Claims (US) (13:30)Initial Jobless Claims (US) (13:30)New Car Registrations (EU) (10:00)Philadelphia Fed Index (US) (15:00)Producer Price Index (GER) (07:00)Index Tertiary Activity (JP) (08:50)Reuters Tankan business confidence survey (08:30)ANNUAL REPORTDRS Data & Research , Henry Boot, Tarsus GroupIMSSDiageo, Ferrexpo, Lavendon, NCC, Taylor WimpeyAGMSAberdeen Smaller Companies High Income Trust, Belvoir Lettings, Carnival, Lavendon Group, Maintel Holdings, Taylor WimpeyFINAL DIVIDEND PAYMENT DATELaw Debenture Corp., Low & Bonar, Sinclair (William) HoldingsQ1Eurasia Drilling Co Ltd GDR (Reg S), Schlumberger Ltd.Friday April 18thINTERIM DIVIDEND PAYMENT DATEAbcam, Trifast, Waterman GroupINTERNATIONAL ECONOMIC ANNOUNCEMENTSLeading Indicators (US) (15:00)RD