The Royal Mail has received mixed forecasts from traders ahead of its full-year results on Thursday.
It marks the UK postal service's first annual results since its successful initial public offering in October 2013.
Berenberg expects the firm to post revenue growth of 2.4% to £9.5bn, with a 10.8% increase in parcel revenue to offset a 4% fall in UK letter and market mail revenue.
"Consequently, 2014 will be the first year in which the revenue contribution from parcels will be more significant than revenues from letters," the broker said.
The analyst also predicts earnings before interest, tax and transformation costs of £615m in 2014, 3% ahead of the £597m consensus.
Espirito Santo, on the other hand, said it was concerned the rate of decline in letter volumes will become "unmanageable, it will be unable to evolve its parcel service offering quickly enough to maintain market share and the market itself will struggle to absorb the level of new capacity".
Cantor Fitzgerald forecasts full-year revenue of £9.4bn with operating profit before transformation costs of £680.
In March, Royal Mail announced a further 1,300 job cuts, with total transformation costs for the full-year lifted by £70m to £230m. "We expect an update on cost cutting and negotiations with the unions," Cantor said.
A day ahead of its results, Royal Mail said it is planning a limited Sunday service, the first time the since the group's inception 498 years ago.
The service will begin within the M25 this summer and, if successful, may be expanded nationally.
It will deliver parcels ordered from on-line retailers, rather than all regular post, in a bid to reduce the number of "while you were out" cards left during the week.
"Through these new Sunday services we are exploring ways to improve our flexibility and provide more options for people to receive items they have ordered online," Moya Greene, Royal Mail's Chief Executive, said.
Thursday May 22nd
INTERIM EX-DIVIDEND DATE
Impax Asset Management Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
HSBC 'flash' manufacturing PMI (China) (10:45)
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
Existing Home Sales (US) (15:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Speech President San Francisco Fed
"Flash" manufacturing PMI (EZ) (08:58)
"Flash" services PMI (EZ) (08:58)
Dairy Crest Group, Electrocomponents, Halfords Group, HydroDec Group, Investec, Max Property Group, Mothercare, QinetiQ Group, Royal Mail, SABMiller, United Utilities Group, Mitchells&Butlers, SAB Miller, Young&Co. Brewery
SPECIAL DIVIDEND PAYMENT DATE
Fresnillo, Hikma Pharmaceuticals
Irish Continental Group Units
Air China Ltd., Aminex, Amlin, Bwin.party Digital Entertainment, Dunedin Income Growth Inv Trust, Empresaria Group, Ferrexpo, Guinness Peat Group, Henry Boot, Hochschild Mining, Hydro International, Hydrogen Group, Irish Continental Group Units, Keller Group, Noricum Gold Ltd (DI), North Midland Construction, Northern Petroleum, Partnership Assurance Group , ProPhotonix (Reg S), PV Crystalox Solar, Quarto Group Inc., Regal Petroleum, Restore, Revolymer, Safestyle UK , Scisys, SeaEnergy, Skyepharma
Amlin, Arrow Global
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
GDP (output, income & expenditure) (09:30)
Index of Services (09:30)
Public Sector Finances (09:30)
FINAL DIVIDEND PAYMENT DATE
Chesnara, Hikma Pharmaceuticals, Mondi, Octopus AIM VCT 2, Prudential, Standard Life