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The below stocks have been identified as having potential to register bigger than normal share price moves (up or down) today based on the news cited
Pearson narrows FY guidance for adj. op. profit from £520-560m to £540-545m; Total underlying revenues -1%, with US Higher Education Courseware -5%, offset by rest of business growing 1%+; Net debt more than halved. Digital transformation progressing to plan; Expect 2019 adj. op. profit £590-640m (+8-18%) with US Higher Education flat to -5% as underlying pressures continue.
Bovis Homes FY new homes +3.1%, in-line (Private -0.2%, affordable +11.2%). Avg. selling price +0.2% (Private +1%). Expects significant step-up in 2018 operating margin, profits slightly ahead of consensus. Forward sales +0.9% (value +0.6%); customer demand for new homes supported by attractive financing and government initiatives (Help 2 Buy). Early ‘19 encouraging. Final div +17%.
Diploma trading in-line, Q1 like-for-like revenues +8% YoY (4% organic). Revenues boosted 1% by FX. Industrial OEM rev. weaker after delivery delays, expected to recover in coming months. Op. margin in-line, slightly below last year. Johnny Thomson (ex-Compass CFO) appointed new CEO.
Tullow Oil FY oil production 88.2K bopd in-line with 87-91K guidance. Expects 93-101K in 2019. Expects FY18 revenue c. $1.8bn, cash flow c. $410m. Net debt -11.4% YoY. FY CapEx of c. $425m (7.6% less than anticipated) and 2019 CapEx ~$570m. Dividends no less than $100m in 2019.
(Sources: Company newswires, Bloomberg, CNBC, FT, Reuters, Wall Street Journal)
For more information on any of these individual news items, call into the trading floor
| Stock | Code | Close | High | Low |
| PERSIMMON | PSN | -0.1% | 3.8% | -0.7% |
| BOOHOO | BOO | -6.8% | 4.3% | -7.6% |
| PROVIDENT FINANCIAL | PFG | -20.7% | -16.2% | -23.3% |
| SPIRENT COMMUNICATIONS | SPT | 16.5% | 20.8% | 8.3% |
| FLYBE | FLYB | -36.0% | -2.7% | -51.7% |
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Prepared by Michael van Dulken, Head of Research