Wednesday preview: Sage Group to report annual results

2nd Dec 2014 15:11

Software company Sage Group on Wednesday is expected to report an increase in annual earnings under new chief executive Stephen Kelly.The consensus forecast on revenue is at £1.317bn, up from £1.315bn a year earlier. Earnings before interest, tax and appreciation (EBITDA) is pegged at £362m, compared to £359m the previous year."The first presentation from new CEO Stephen Kelly provides in our view a clear opportunity for management to re-invigorate the equity story," Numis said."With £310-330m/year of free cash flow, we think Sage could take net debt: EBITDA to 2.5x, shrink its equity base over 25%, and thus deliver EPS and TSR CAGRs of 14% and 17% respectively over three years."On the macro-economic calendar, a batch of services activity data will be released out of China, the UK, the Eurozone and the US.A report on Eurozone retail sales is projected to show a 1.6% rise in October following a 0.6% increase a month earlier. The ADP will publish its jobs report which is expected to reveal US employers added 224,000 jobs in November.Also Stateside, Federal Reserve official Charles Plosser speaks on the economic outlook in Charlotte, North Carolina, at 17:30 London time.His colleague Lael Brainard will speak on financial stability in Washington at 19:00.At the same time the central bank also releases its Beige Book, which will outline the outlook on current economic conditions. The market will be searching for clues as to when the Fed will raise interest rates.Wednesday December 03INTERIMSAPI Group, International GreetingsINTERIM DIVIDEND PAYMENT DATEBlackRock Smaller Companies TrustINTERIM EX-DIVIDEND DATEPalace CapitalINTERNATIONAL ECONOMIC ANNOUNCEMENTSCrude Oil Inventories (US) (15:30)ISM Non-Manufacturing (US) (15:00)ISM Services (US) (15:00)MBA Mortgage Applications (US) (12:00)PMI Composite (EU) (09:00)PMI Composite (GER) (08:55)PMI Services (EU) (09:00)PMI Services (GER) (08:55)Productivity (US) (13:30)Retail Sales (EU) (10:00)GMSC A SperatiFINALSBrewin Dolphin Holdings, Character Group, Innovation Group, Sage GroupIMSSTescoAGMSAdvance Frontier Markets Fund Ltd, Bioventix, Ceres Power Holdings, Global Market Group Ltd (DI), Haydale Graphene Industries, Madagascar Oil Ltd (DI), Purecircle Limited (DI)UK ECONOMIC ANNOUNCEMENTSBRC Shop Price Index (00:01)Official Reserves (09:30)PMI Composite (09:30)PMI Services (09:30)