Mobile phone giant Vodafone is among a string of high profile companies reporting results this week.
Vodafone, which reports its figures tomorrow, has experienced a challenging time in its core European markets, including the UK, Germany, Italy and Spain.
But the company has started reaping the benefit of cost-saving measures earlier than expected as competition in the mobile market continues to hot-up.
On Friday it also announced plans to join the battle for broadband business by unveiling details of its #25-a-month Vodafone at Home service. The product, which will be available to its contract customers from January, offers unlimited broadband and inclusive landline calls to any UK landline.
The firm said last month it was dumping Carphone Warehouse as a sales point for its contract mobile phones in favour of retailer Phones 4U.
Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said: "With Vodafone management having only recently updated investors regarding its German, Italian and Spanish businesses, room for negative surprises within the results have been reduced."
Barclays Wealth forecasts earnings before interest and tax for the period to hit #5.92 billion compared with #5.9 billion last year, while Investec Securities reckons revenues will be up 7.5 per cent to #15.7 billion.
Supermarket chain Sainsbury’s reports half-year results on Wednesday and analysts are expecting figures to show further signs of the recovery. Last month Sainsbury’s said like-for-like sales were up 6.6 per cent in the second quarter of its financial year, meaning the business has now grown sales for seven quarters in a row.
Chief executive Justin King said the company’s performance was helped by spells of good weather, which led to greater focus on fresh and healthy food.
Sainsbury’s is not alone in making progress along the recovery path with rival Morrison and resurgent Marks & Spencer also reporting positive steps. Under a three-year recovery plan called Making Sainsbury’s Great Again, Mr King has taken on extra staff and invested more money in price cuts.
And, despite the intense competition, the chain has impressed and looks to have good momentum as it heads towards the important Christmas period.
Philip Dorgan, an analyst at Panmure Gordon stockbrokers, expects pre-tax profits of #191 million against a consensus of #185 million. William Hobbs, from Barclays Wealth, sees a figure of #193 million compared with #118 million last time. Meanwhile, budget airline easyJet tomorrow looks set to report a boost in profits, despite the pressures of higher fuel costs and terror scares.
In September easyJet estimated a profits rise of between 40 per cent and 50 per cent on last year, but now believes it will be "slightly ahead" of those expectations.
The Luton-based carrier had offered guidance earlier in the year which pointed to a ten to 15 per cent profits growth for the year to September 30.