Tuesday preview: FTSE earnings in focus

With earnings season in full swing, corporate results on the FTSE 100 and 250 will dominate Tuesday’s agenda.

Meggitt reports its first half results with analysts expecting the aerospace engineer to reveal higher revenues.

UBS forecasts a 10.8% increase in group revenue to £846m, supported by a 10.9% jump in Aircraft Braking Systems to £168m and a 78% surge in Polymers and Composites to 146m.

The bank sees a 3% fall in Control Systems revenues to £191m, a 2% decline in Sensing Systems revenues to £229m and a 3% drop in Equipment Group revenues to £111m.

UBS has forecast group operating profit of £152m for the half year.

“We expect investor focus to be on: 1) aftermarket trends and pressure from surplus parts, 2) implications from toughening conditions in the business jet market, 3) trends in Military and Energy business.”

Pharmaceuticals giant Shire is also among the FTSE 350 companies reporting. The second quarter results will be complicated by the merger of Baxalta on 3 June, according to Deutsche Bank.

“However, we expect the company to report pro forma combined revenue growth of 10% and our forecasts imply pro forma non generally accepted accounting principles (GAAP) earnings before interest and tax (EBIT) growth of 8%,” the bank said.

“We expect focus to be on possible updated synergy targets and guidance.”

Baxalta revenues are expected to have risen 11% at a constant exchange rate, reflecting growth in its Immunology and Hematology divisions, along with a positive contribution from the portfolio acquisition of blood cancer drug Oncospar.

Deutsche Bank said Shire’s second quarter results should also benefit from strong year-on-year growth in US prescriptions of central nervous system stimulant, Vyvanse, and ulcerative colitis treatment, Lialda.

Tuesday 2 August

INTERIMS

Clarke (T.), Cyprotex, Dialight, Direct Line Insurance Group, Fresnillo, Greggs, Hutchison China Meditech Ltd, InterContinental Hotels Group, LSL Property Services, Shire Plc, Tullett Prebon, Meggitt

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Personal Consumption Expenditures (US) (13:30)

Personal Income (US) (13:30)

Personal Spending (US) (13:30)

Producer Price Index (EU) (10:00)

Q2

Shire Plc

FINALS

Clipper Logistics , Filtronic

AGMS

Kodal Minerals

TRADING ANNOUNCEMENTS

Barr (A.G.)

UK ECONOMIC ANNOUNCEMENTS

PMI Construction (09:30)

FINAL DIVIDEND PAYMENT DATE

E2V Technologies, Hibernia Reit , Johnson Matthey, KCOM Group, TR Property Inv Trust, VP