Services provided by Keywords Studios are used by 21 of the 25 games developers, so Tuesday's results should give a clue as to the state of the industry.
The February trading update sent the analysts that follow the stock running to their spreadsheets to update their forecasts, as the company said full-year revenues and adjusted profit before tax would be “comfortably ahead” of consensus forecasts.
Broker Numis now expects revenue of around €57.8mln and adjusted profit before tax of €7.8mln.
“We think that Keywords is likely to have generated organic revenue growth of about 20% in the year, supplemented by acquisitions to c.55% total, and to have delivered stable margins,” Numis's Will Wallis said.
“At the time of these results in particular we expect management to have a clearer perspective on major customers’ likely demand through 2016 than was available at the time of the trading update. We model organic growth in 2016 of 10%, alongside stable margins, which we believe is potentially conservative. We also continue to expect material acquisitions in due course, although we have no reason to believe that an acquisition will take place alongside the results,” Wallis added.
Significant announcements expected
Economic: UK – Construction PMI; US – Factory Orders.
Finals: AA plc (LON:AA.), Card Factory PLC (LON:CARD), EKF Diagnostics Holdings PLC (LON:EKF), Hostelworld Group PLC (LON:HSW), Instem PLC (LON:INS), Keywords Studios (LON:KWS), Martinco PLC (LON:MCO) , Moss Bros Group PLC (LON:MOSB), Silence Therapeutics PLC (LON:SLN), Thalassa Holdings Ltd (LON:THAL)
Economic: UK – Services PMI; US – ISM Non-manufacturing PMI, JOLTS Job Openings; Trade Balance.
Economic: US – Crude oil inventories, FOMC meeting minutes
Economic: UK – Halifax House Price Index; EU – ECB Monetary Policy Meeting Accounts; US – Unemployment Claims
No results expected
Economic: UK – Trade Balance, Manufacturing Production.