Wednesday preview: Next, FirstGroup, 888, Service PMI

2nd Nov 2010 16:29

Fashion chain Next is scheduled to make an interim management statement on Wednesday. Panmure Gordon is forecasting a year on year decline of 1.0% in like for like retail sales in the third quarter, but the Next Directory should see a rise of about 8.0%. The Next Directory projection "compares with a Q3 [third quarter] outturn of +5.1% last year, and run rates of 7.2% in Q1 and 11.8% (implied) in Q2," the broker notes."We detected, at the interim results meeting in September, that senior management were more convinced of the value of leveraging internet sales (e.g. by investing in site upgrades) and as a result we upgraded our forecasts for the Directory division significantly," Panmure Gordon said.You wait ages for a trading update from a bus and train group and then two come along in quick succession; in this case it is FirstGroup bringing out interim figures a day after Stagecoach did likewise.It is barely more than a month since the group confirmed current trading was motoring along in line with expectations, since when most shares in the sector have received a boost from the government's comprehensive spending review being less hard on bus subsidies than feared.Charles Stanley is predicting pre-tax profit will rise to £75m from £69.7m, with earnings per share of 9.3p. KBC Peel Hunt is a shade more optimistic and is predicting £78m, and earnings per share of 10.4p."Management should reiterate its confidence of success in reducing debt to the target of 2.5x earnings before interest, tax, depreciation and amortisation, consistent with a 7% annual increase in the dividend, now yielding 5.5%," Peel Hunt said.Online gaming group 888 issues its key performance indicators for the third quarter. Panmure Gordon is forecasting total operating income of $59.6m, which would represent slippage of around 2% both on the previous quarter and the corresponding quarter of last year. "August benefitted from double-digit increases in daily revenue compared to July, with poker +15%, partly benefitting from the release of Poker version 6," the broker noted.On the economic front the service sector purchasing manager's index should show that activity expanded in October, albeit at a relatively modest rate. Economists predict the index value will be 52.6 (a value above 50 indicates expansion), compared to September's 52.8. On the other side of the pond it should be clear by morning what the fall-out has been like in the US mid-term elections. It is widely regarded as a foregone conclusion that the Democratic Party will lose control of the lower house, the House of Representatives, and there is a realistic chance of them losing control of the Senate as well, depending on how well the influence of the radical "back to the ideals of the 18th century" Tea Party on the Republican Party plays with the floating voters.INTERIMSAlterian, Canaccord Financial Inc., FirstGroup, Gail (India) Ltd. GDR (Reg S)INTERIM DIVIDEND PAYMENT DATEBrammer, Capital Shopping Centres Group, Cello Group, StatPro GroupINTERIM EX-DIVIDEND DATEAga Rangemaster Group, Collins Stewart, Downing Planned Exit VCT 2 'D' Shares , Downing Planned Exit VCT 3 'D' Shares , Hilton Food Group, Intertek Group, Laird, M&C Saatchi, Northern 2 VCT, Persimmon, Provident Financial, SThreeQUARTERLY EX-DIVIDEND DATEJPMorgan Claverhouse Inv Trust, Royal Dutch Shell 'A', Royal Dutch Shell 'B'INTERNATIONAL ECONOMIC ANNOUNCEMENTSPMI Composite (GER) (08:55)PMI Services (GER) (08:55)PMI Composite (EU) (09:00)PMI Services (EU) (09:00)MBA Mortgage Applications (US) (12:00)ADP Employment Change (US) (13:15)Challenger Job Cuts (US) (13:30)Factory Orders (US) (15:00)ISM Non-Manufacturing (US) (15:00)ISM Services (US) (15:00)Crude Oil Inventories (US) (15:30)FOMC Interest Rate (US) (17:15)Q3Endeavour International Corp., Yamana Gold Inc.GMSCMA Global Hedge PCC Ltd. EUR Shares, Intec Telecom Systems, ServocaFINALSEgdon ResourcesANNUAL REPORTAltona EnergyIMSSCapital Shopping Centres Group, Cobham, Logica, Next, Standard LifeSPECIAL EX-DIVIDEND PAYMENT DATEAsian Citrus Holding, Rensburg AIM VCTEGMSCMA Global Hedge PCC Ltd. EUR SharesAGMSJD Wetherspoon, Macau Property Opportunities Fund Ltd., Synairgen, Unitech Corporate ParksTRADING ANNOUNCEMENTSStandard LifeUK ECONOMIC ANNOUNCEMENTSBoE Inflation Report (09:30)BRC Shop Price Index (00:01)Official Reserves (09:30)PMI Composite (09:30)PMI Services (09:30)FINAL EX-DIVIDEND DATEAbcam, Anglo & Overseas, Ashmore Group, Asian Citrus Holding, BlueBay Asset Management, Go-Ahead Group, Interior Services Group, James Halstead, JPMorgan Overseas Inv Trust, Matchtech Group, Murgitroyd Group, United Carpets GroupQ1Centamin Egypt Ltd.