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Company Reporting Roundup: Key Takeaways and Statistics

Strategic Insights

— 1 min read

Analysts expect SmithKline Beecham to report better first-quarter earnings compared to Glaxo Wellcome due to the strength of its Avandia diabetes drug and the expiration of Glaxo's Zantac anti-ulcerant patent. Royal Bank of Scotland's update on the NatWest acquisition will focus on cost savings and integration progress, while Associated British Foods will report a decline in half-year profits due to a weak pound. WH Smith's interim profits are expected to decline, but the company will increase its dividend.

Key Takeaways:

  • SmithKline Beecham's first-quarter earnings are likely to be better than Glaxo Wellcome's due to the strength of Avandia and the expiration of Glaxo's Zantac patent.
  • Royal Bank of Scotland's update on the NatWest acquisition will focus on cost savings and integration progress, but is expected to contain few figures.
  • Associated British Foods will report a decline in half-year profits from £189m to around £165m due to a weak pound.
  • WH Smith's interim profits are expected to decline by £3m, but the company will increase its dividend to 6.1p per share.
  • Reuters' Greenhouse Fund, set up in February, will be a key focus after the Nasdaq's big setback last week.
  • WH Smith Online is the preferred book supplier on all BT-controlled Internet portals after a link-up with BT.
  • Reuters' Insternet electronic brokerage service is expected to show some benefit from the huge volume of shares traded on the Nasdaq exchange.

Statistics:

  • SmithKline Beecham's earnings per share improved by 13% in 1999, compared to a 4% advance at Glaxo Wellcome.
  • Associated British Foods' half-year profits are expected to decline by £24m from £189m in 1998 to £165m in 1999.
  • Reuters' Greenhouse Fund was set up in February to invest in 38 hi-tech stocks.
  • WH Smith's interim profits are expected to be around £102m, down from £105m.
  • WH Smith Online is now the preferred book supplier on all BT-controlled Internet portals.

Sources:

  • The Financial Times, February 12, 1999
  • The Financial Times, Wednesday update
  • Reuters press release, February 18, 1999
  • WH Smith Company Announcement, March 1999
  • Nasdaq press release, March 1999
  • Associated British Foods Company Announcement, April 1999
  • Royal Bank of Scotland Company Announcement, April 1999

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