Tuesday preview: M&S and Vodafone report

Marks & Spencer (M&S) and Vodafone are expected to make waves Tuesday when they release their full-year results.

Marks & Spencer (M&S) and Vodafone are expected to make waves Tuesday when they release their full-year results.

Analysts forecast M&S will report its lowest annual profit in four years, as the retailer's struggling general merchandise division continues to offset a rise in food sales.

The firm's clothing business has posted seven consecutive quarters of underlying sales declines, prompting an overhaul of the division to draw in more customers.

M&S is anticipated to post a pre-tax profit of £640 to £670m with a consensus of £658m, according to a company poll reported by Reuters. The group made a £706m profit the year earlier.

However, Panmure Gordon, which forecasts a pre-tax profit of £666m, reiterated a 'buy' rating saying the company's new clothing range may facilitate growth down the road.

"[...] We think that the market should be careful not to underestimate the positive effect that a well-received womenswear collection could have on the company's financial performance," the broker said.

Chief Executive, Marc Bolland, recently unveiled the company's new strategy to boost its fashion department along with a new autumn/winter collection which was well-received by analysts.

Meanwhile, Vodafone is expected to reveal annual results that show the impact of the continuing Eurozone crisis and European regulation on its core business.

Vodafone will report a drop in sales in the wake of heightened competition, analysts predict.

They have also projected that the company will show its growing reliance on Verizon Wireless for profits. Last week, Vodafone announced that will receive more than £2.0bn from its stake in the US join venture with Verizon.

Verizon Wireless, which has been at the centre of takeover rumours by Verizon for months, is paying a total of $7.0bn to shareholders at the end of June.

Vodafone, which owns 45% in VZW, will receive $3.2bn, while Verizon will pocket the rest.

Jefferies International, which recommended a 'hold' rating, said the announcement suggested an "upside to full-year expectations".

"We continue to see status quo as the most likely outcome for Verizon Wireless ownership given the on-going attraction of tax-free dividend income to Vodafone," the broker said.

"However, we don't believe Verizon's ownership ambitions have receded. Indeed extracting dividends upfront would be tax efficient if a deal were forthcoming."

Tuesday May 21th

INTERIMS

Greencore Group, Paragon Group Of Companies, Renew Holdings, Zytronic

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Producer Price Index (GER) (07:00)

GMS

Bankers Petroleum Ltd.(CDI)

FINALS

Big Yellow Group, Bloomsbury Publishing, Burberry Group, Chamberlin, China Food Co, Intermediate Capital Group, JZ Capital Partners Ltd, Marks & Spencer Group, Telecom Plus, Vectura Group, Vertu Motors, Vodafone Group

IMSS

Bwin.party Digital Entertainment

SPECIAL DIVIDEND PAYMENT DATE

Standard Life

AGMS

Alent, Cathay International Holdings Ltd., Chariot Oil & Gas Ltd., Concha, Escher Group Holdings, Glanbia, Hydrogen Group, Impax Environmental Markets, Instem, Invesco Perpetual UK Small Companies Inv Trust, JSC KazMunaiGaz Exploration Production GDR (Reg S), Kakuzi Ltd., Martin Currie Global Portfolio Trust, Regus, Royal Dutch Shell 'A', St James's Place

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (09:30)

Producer Price Index (09:30)

FINAL DIVIDEND PAYMENT DATE

Brady, Holders Technology, Kazakhmys, Rentokil Initial, Rotork, Standard Life, Taylor Wimpey

Q1

AFI Development, X5 Retail Group NV GDR (Reg S)

RD

Recommended

Too embarrassed to ask: what is short selling?
Too embarrassed to ask

Too embarrassed to ask: what is short selling?

Short sellers are often accused of unfairly driving share prices down to make a quick buck. But short selling is a perfectly legitimate – if risky – t…
26 Jan 2021
Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin does consume a lot of energy – but here’s why it’s worth it
Bitcoin

Bitcoin does consume a lot of energy – but here’s why it’s worth it

Some people question bitcoin’s legitimacy because it uses huge amounts of electricity to maintain its network. But that’s not a failing, says Dominic …
27 Jan 2021
Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail
US stockmarkets

Joe Biden’s spending spree will lift American spirits and markets – but it comes with a sting in the tail

New US president Joe Biden is planning to throw trillions of dollars in stimulus at his country’s economy. Markets will love that. But it comes with a…
25 Jan 2021
Think Tesla is a bubble? This might be the best way to bet on it bursting
Oil

Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. …
25 Jan 2021