Wednesday preview: Sainsbury issues third quarter update

7th Jan 2014 16:22

J. Sainsbury is expected to report a mixed third quarter trading update on Wednesday, according to Jefferies International. The broker estimates the UK supermarket may post a 1% fall in like-for-like sales, which would represent a sharp slowdown to the 1.4% growth reported in the first half."This would confirm both a tough trading backdrop and a weakening relative outperformance by the group," Jefferies said in a note issued last week."We have noted a step up in Sainsbury's gross margin action in recent weeks, but expect more constructive developments in cashflow/space dynamics to emerge as a more pondered reaction to industry challenges." Jefferies recommended a 'hold' rating and target price of 410p ahead of the group's update tomorrow. Rival supermarket Asda on Monday said it enjoyed a strong performance over the Christmas period online and in store ahead of its fourth quarter results in February. On tomorrow's agenda, other companies reporting including Domino's Pizza, Galliford Try and Persimmon. Afterwards will be the release of economic data including the Eurozone unemployment rate, German factory orders, US mortgage applications and US employment data. Wednesday January 8thINTERIMSTungsten CorporationINTERIM DIVIDEND PAYMENT DATE3i Group, De La Rue, Phoenix IT GroupINTERIM EX-DIVIDEND DATEAberdeen New Dawn Investment Trust, Dairy Crest Group, Latham (James), Monks Inv Trust, NewRiver Retail Ltd. (Reg S), Pinewood Shepperton, Solid State, Speedy Hire, Workspace GroupQUARTERLY EX-DIVIDEND DATEAssura Group Ltd., British Land Co, Investors Capital Trust 'A' Shares, Investors Capital Trust Units, Verizon CommunicationsINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Trade (GER) (07:00)Crude Oil Inventories (US) (15:30)Current Account (GER) (07:00)Factory Orders (GER) (11:00)FOMC Interest Rate Minutes (US) (19:00)MBA Mortgage Applications (US) (12:00)Retail Price Index (GER) (07:00)Retail Sales (EU) (10:00)Unemployment Rate (EU) (10:00)GMSParagon DiamondsFINALSIDOXANNUAL REPORTSWP GroupIMSSDomino's Pizza GroupSPECIAL DIVIDEND PAYMENT DATE3i GroupSPECIAL EX-DIVIDEND PAYMENT DATEEuropean Investment TrustTRADING ANNOUNCEMENTSGalliford Try, Robert Walters, Sainsbury (J)UK ECONOMIC ANNOUNCEMENTSBRC Shop Price Index (00:01)FINAL EX-DIVIDEND DATECharacter Group, Conygar Investment Company, DotDigital Group, Edinburgh Worldwide Inv Trust, European Investment Trust, ITE Group, Lowland Investment Co, Majedie Investments, Next Fifteen Communications, Octopus VCT 3, Octopus VCT 4, Paragon Group Of Companies, Smiths News, Spirit Pub Company, Standard Life European Private Equity Trust, WH SmithRD