Friday preview: Significant profit progress expected from Computacenter

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Friday preview: Significant profit progress expected from Computacenter

Thu, 17 August 2017
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Friday preview: Significant profit progress expected from Computacenter

(ShareCast News) - Friday is down to be the quietest day of August so far, with no top-tier macroeconomic data and only one FTSE 350 company due to report.
Computacenter is expected to post solid first-half results to follow a first quarter update from April where it notified of an improved outlook for the full year.

The independent IT infrastructure services provider believed the group's performance for 2017 as a whole would exceed current market expectations due to buoyant market conditions for new investments in technology, particularly by its German business, backed up by steady progress in France and the UK, as well as favourable currency movements.

Group revenue for the first quarter increased by 16% on an as-reported basis and 9% at constant currency rates, with services revenue up 14% and 7% at CCRs, and supply chain revenue climbing 17% and 11% at CCRs.

Barclays forecast half-year revenues of £1.6bn, representing 2.4% constant currency growth.

With weaker comparatives from last year, analysts expect a higher adjusted PBT growth in the first half and the company to return to a "more normalised seasonality".

"We look for £35.7m of the adjusted PBT to be delivered in H1, a significant 41% y/y improvement versus the weak comp and this is the main KPI."


In the absence of blockbuster data, currency traders craving In the early hours, German producer price data is expected to be unchanged on the month and easing to 2.2% on the year from 2.4% a month ago.

At 0900 BST the eurozone current account is forecast to slim to €27.3bn from €30.1bn, while there were no consensus numbers available for eurozone construction output out at the same time.

The Bank of Canada will at 1330 BST reveal consumer price inflation, which will move the dial on the Canadian dollar.

Later on a preliminary reading on the University of Michigan's US consumer confidence gauge for August could encourage some action for the greenback.

Friday August 18

Current Account (EU) (09:00)
Producer Price Index (GER) (07:00)
U. of Michigan Confidence (Prelim) (US) (15:00)


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