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Tuesday preview: ARM Holdings and BP post results

ARM Holdings and BP will take the stage Tuesday as the FTSE 100 companies release fourth quarter and full year results.

ARM Holdings and BP will take the stage Tuesday as the FTSE 100 companies release fourth quarter and full year results.

Analysts at Jefferies International last week predicted that ARM, the British multinational semiconductor and software design company, is well positioned to deliver sales exceeding £151m for the fourth quarter and underlying earnings per share of 4.2p, up from 3.7p in the previous quarter.

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Jefferies on January 29th reiterated its 'hold' rating but raised its price target to 805p in line with changes to earnings estimates.

"We expect earnings growth to continue largely unperturbed through 2013-14 but see much of that reflected in recent trading (up 30% since Nov'12)," the broker said.

It added that sentiment was "still too strong" with the ARM's share price slowing down and will rise depending on better than expected first quarter guidance, cost control and faster than hoped tax benefits in the UK.

A normalised gross margin of 95.6%, up from 94.6%, was forecast for the quarter.

BP, on the hand, is expected to report a 34% profit fall after landing a $4.0bn fine last week over the Deepwater Horizon explosion and oil spill which killed 11 men in 2010.

Market forecasts say profits will drop to $3.3bn from $4.99bn in the same period in the previous year.

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Jefferies said on January 30th that BP needed to up its game against its competitors, particularly Royal Dutch Shell, with a new strategic focus.

Analysts suggested the group make acquisitions "in areas where BP is under-represented", a new avenue for production growth out its current portfolio and a higher dividend increase than the market expects.

Tuesday February 05

INTERIMS

Allocate Software

INTERIM DIVIDEND PAYMENT DATE

Anglo Pacific Group, Johnson Matthey, Workspace Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ISM Non-Manufacturing (US) (15:00)

ISM Services (US) (15:00)

PMI Composite (EU) (09:00)

PMI Composite (GER) (08:55)

PMI Services (EU) (09:00)

PMI Services (GER) (08:55)

Retail Sales (EU) (10:00)

Q4

ARM Holdings, BG Group, BP

GMS

Sports Stars Media

FINALS

ARM Holdings, BG Group, BP, Low & Bonar, St. Modwen Properties

IMSS

Victrex

AGMS

Albion Income & Growth VCT, Dewhurst, Dewhurst (Non-Voting), Numis Corporation, Victrex

UK ECONOMIC ANNOUNCEMENTS

BRC Sales Monitor (00:01)

Official Reserves (09:30)

PMI Services (09:30)

FINAL DIVIDEND PAYMENT DATE

Spirit Pub Company

RD

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