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Week Ahead: Telit expected to reveal benefit from sterling's slide

Among the big names reporting this week include insurance giants Legal & General, Old Mutual, Standard Life and Prudential

Telit wireless
Telit specialises in machine-to-machine wireless communication

The flood of results should ease off this week, allowing smaller, growth companies such as Telit Communications some time in the spotlight.

The industrial Internet of Things specialist releases interims on Monday, having announce a partnership with Indian information technology titan Tech Mahindra last week.

“We expect the interims to show that the company is on course to meet and beat consensus forecasts as there will be a positive translational FX [foreign exchange] impact from the recent USD/GBP move of around 10% when earnings are converted from US cents to GB pounds; however, we believe that some of this has already been factored into the Telit share price, given the recent momentum seen in the shares (+22% since the Brexit vote),” said Peel Hunt.

Full-year revenue forecasts range from US$375mln to US$391mln, while earnings per share are tipped to land somewhere between 23 and 25 cents, inclusive.

“Looking ahead, we see a continued growth in demand in Telit's end markets for the Industrial Internet of Things, and the company is well positioned to take advantage of the underlying demand, with upside risk to estimates from contracts such as smart metering and as developers and integrators look to migrate North American 2G or 3G IoT devices to LTE,” Peel Hunt said.

Purified cannabinoids biotech company GW Pharmaceuticals surprised Numis Securities with positive Phase 3 headline results for Epidiolex for the treatment of Dravet back in March and Lennox-Gastaut Syndromes in June, as it expected both these trials to fail.

“We now await further data from the trials, particularly around the drug-drug interactions with Clobazam and details of GW’s subsequent interactions with the US FDA [Food & Drug Administration] that are expected to inform the ongoing Phase 3 Dravet syndrome study,” the broker said.

“The second Phase 3 trial in Lennox-Gastaut is expected to report in Q3, and we await updates from several of GW’s competitors in the orphan epilepsy space in the coming weeks with Zogenix and SAGE also reporting on the 9th August,” it added.

Significant announcements expected

Monday

Interims: Telit Communications Plc (LON:TCM).

Tuesday

Interims: GW Pharmaceuticals PLC (LON:GWP), Legal & General Group PLC (LON:LGEN), Quarto Group Inc (LON:QRT), Regus PLC (LON:RGU), SIG PLC (LON:SHI), Standard Life PLC (LON:SL.), Worldpay Group PLC (LON:WPG)

Wednesday

Final: Trafalgar New Homes PLC (LON:TRAF)

Interims: Interserve PLC (LON:IRV), Prudential PLC (LON:PRU)

Thursday

Final: UK Select Trust Ltd (LON:UKT)

Interims: Aldermore Group PLC (LON:ALD), Coca-Cola HBC (LON:CCH), Derwent London (LON:DLN), Grupo Clarin (LON:GCLA), Hastings Group Holdings PLC (LON:HSTG), Old Mutual Group PLC (LON:OML), PageGroup PLC (LON:PAGE), Tritax Big Box Reit PLC (LON:BBOX), TUI AG (LON:TUI)

Trading statement: Glencore PLC (LON:GLEN)

Friday

Interims: FBD Holdings PLC (LON:FBH), JSC TBC Bank (LON:TBCB)

Trading statement: Volution Group PLC (LON:FAN)

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