Balfour Beatty report due Wednesday

Balfour Beatty is due to report its first-half results for 2014 on Wednesday 13 August. The consensus is for revenue of £4.9 billion.

Balfour Beatty
Source: Bloomberg

Balfour Beatty is trading at 236p. The stock is down 27% since it posted its full-year figures for 2013 in March, when the company revealed a 32% decline in profits. The infrastructure company has had a difficult few months; in May the CEO, Andrew McNaughton, stepped down due to the poor performance and the company issued another profit warning in July.

There was a glimmer of hope for the troubled company as it entered into merger talks with Carillion. However, these talks ended shortly after they began, wiping out any gains made in Balfour Beatty’s share price on the back of the possible merger. Equity analysts are a touch on the bearish side. Out of the 12 ratings, two are buys, six are holds and four are sells.

The share price has found support at 220p but it has failed to fill the gap between 242p-285p. If the company was to reveal another profit warning it could move below 200p. Any signs of turnaround and stock could target 285p.

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