Why ITV plc, Smiths Group plc and Intertek Group plc Should Lag The FTSE 100 Today

The FTSE 100 (FTSEINDICES: ^FTSE) has been pegged back a bit by earnings fears today, losing 34 points to 6,689 by just after midday. That is only four points down on the week so far, although the recent upwards trend does seem to be falling off a little.

But which shares are beating the FTSE down today? Here are three that are slipping:


ITV shares have had a great year, more than doubling over 12 months at one point. But they’ve fallen back a fraction in recent weeks, and the price dipped 2.6p (1.4%) to 184p this morning despite nine-month revenue growing 6% to £1,664m. The broadcaster also reported cost savings of around £25m, £5m ahead of target.

Chief executive Adam Crozier told us “ITV is now a stronger and more balanced business and as we move into 2014 we will continue to see growth across the company“, adding that he expects ITV to “deliver double digit revenue growth in Online, Pay & Interactive“.

Smiths Group

Smiths Group (LSE: SMIN) shares have also done well this year, picking up close to 40% over 12 months. But the price fell back 42p (2.9%) to 1,391p today, even though an update ahead of tomorrow’s AGM told us that things are going in line with expectations.

Revenue and headline operating profit are both heading upwards, and debt is slightly down from £744m at the end of July to £740m.

Forecasts for the year to July 2014 suggest a modest rise in EPS, with a dividend yield of 2.9%.


In contrast to the two above, Intertek Group (LSE: ITRK) shares have had an erratic year. And right now they’re only around 7% up over the past 12 months after a 131p (4.1%) fall today to 3,050p.

There were two pieces of news today, with a third-quarter update telling us that the “headwinds experienced in the first half of the year have persisted into the second half“, after the safety and quality specialist warned that weak mineral prices have impacted business in Europe. But with strength in China, the Middle East and other regions, the firm has seen revenue growth of 5% since 1 July.

In other news, we heard that Intertek has agreed to acquire US building products testing and certification company Architectural Testing, for $95m in cash.

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> Alan does not own any shares mentioned in this article.