(MENAFN- ProactiveInvestors - UK) After Lloyds Banking Group PLC (LON:LLOY) disappointed with a downbeat outlook on Thursday, despite sharply higher profits, investors will hope for better from Barclays PLC (LON:BARC) on Friday.
Analysts reckon Barclays will report a sIMIlar first-half picture, given that it also saw a sIMIlar drop in profits in the first quarter of this year.
That performance was undermined by divisions it plans to get rid of, with plans to offload the Egyptian already in progress, on top of a decision to reduce its Africa stake.
Barclays plans to split itself into two divisions, UK and international, as it looks to restructure its operations to trade in a rapidly changing global banking environment.
CMC Markets says that while its investment bank produced some better-than-expected numbers in the first quarter, the lower yield environment of recent weeks is likely to produce sIMIlar contractions in profit expectations, which are likely to be more pronounced given its larger international exposure.
Reckitt Benckiser PLC (LON:RB.) bosses may face questions about market rumours of a takeover bid for Ireland's Perrigo Company plc (NYSE:PRGO) when the Nurofen and Durex condom maker reports interims on Friday.
There was unconfirmed speculation earlier this month that the maker of Nurofen, Strepsils and Durex condoms was running the rule over New York-listed Perrigo. Both companies declined to comment.
Reckitt appears set to be a major participant 'and arguably the salient beneficiary' of a major sector consolidation process, according to broker Whitman Howard.
Whitman analyst Chris Wickham, who has a 'buy' and a 9000p target price on the stock, said: 'RB generates around 90% of profits internationally.
"The analyst-polled consensus, with which we concur, is for a 4.9% second quarter sales growth rate and 1bn of H1 operating profit (22.7% margin).
"Earnings per share are expected to be 108.9p compared with last year's 99p.'
Other companies set to report include:
Interims: Centaur; Essentra; Foxtons; IMI; Indivior; International Consolidated Airlines; Laird; Pearson; UBM; Vesuvius.
Trading statement: Paragon.
AGM: Findel; Vodafone.
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