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Next week brings another crush of earnings reports, though as we’ve turned the corner and are now more than halfway through, the outcome of the season has sort of coalesced in the minds of many - tech, industrials and global-focused companies are having a harder time of it than the financials and healthcare names. Next week brings staples and stalwarts like Disney, expected to keep raking in the bucks just six months before Star Wars starts the entire process over again. But we also have to contend with jobs figures on Friday, as investors ready for the first rate increase from the Fed in nearly a decade.
Media company and theme park operator Walt Disney Co on Tuesday is expected to report third-quarter profit above the average analyst estimate, according to Thomson Reuters StarMine. Disney’s quarterly results will include gains from the release of second film in the “Avengers” series - “The Avengers: Age of Ultron”. The company is also expected to rake in higher revenue in its park and resorts business unit, helped by the onset of summer break in June. However, Walt Disney’s reliance on revenue generated by its cable channels, especially ESPN, remains a concern amid a period of uncertainty in the cable industry.
CVS Health Corp, the second-largest U.S. drugstore operator, is likely to report second-quarter sales above analysts’ average estimate, according to Thomson Reuters StarMine. The company, which recently made multi-billion acquisitions of healthcare services firm Omnicare Inc and Target Corp’s pharmacies and clinics, reduced its full-year profit forecast to reflect a reduced share buyback target. When it reports on Tuesday, investors will look for updates on retail sales growth, which have taken a hit since the company stopped selling tobacco products last year, and integration of its acquisitions.
Friday’s jobs data is expected to show the U.S. economy created 222,000 new jobs in July. Also, the unemployment rate is expected to hold steady at 5.3 percent. Investors will be keeping an eye on the job growth numbers as the U.S. Federal Reserve chief Janet Yellen has made it clear she’s looking out for “some” improvement in the job market before voting for the first Fed interest rate rise in nearly a decade. On Wednesday, the ADP National Employment Report is likely to show U.S. private employers added 215,000 jobs in July, down from a previous month’s 237,000 jobs. Also, next week’s focus will be on Wednesday’s data on services sector growth, business activity index and employment index from the Institute for Supply Management. Separately, on Tuesday, the Commerce Department’s figures on new orders for manufactured goods is expected to have increased 1.8 percent in June after a drop of 1.0 percent in May.
Media company 21st Century Fox Inc reports on Wednesday fourth-quarter results for the first time since James Murdoch took over as CEO. Wall Street expects the company to post earnings of 37 cents per share, down from 42 cents a year earlier, according to Thomson Reuters I/B/E/S. The company is facing a weaker advertising market, ratings declines at the Fox broadcast network and tough comparisons for its film studio.
Drugmaker Regeneron Pharmaceuticals Inc - bolstered by strong demand for blockbuster eye drug Eylea - is set to report on Tuesday better-than-expected adjusted second-quarter profit for the first time in six quarters, according to Thomson Reuters StarMine. Regeneron had forecast sales of its flagship drug to be 30-35 percent higher this year.
Power company Duke Energy Corp is expected to report a lower second-quarter profit on Thursday, hurt by rising costs and weakness in its international business. The company, which is shifting its focus to regulated power markets from volatile wholesale markets, said in May it had cut about 15 percent of its workforce. Investors will want to know more about Duke’s cost-cut measures and its plans for its international operations.
Health insurer Aetna Inc, fresh off announcing plans to buy smaller rival Humana Inc, will announce second-quarter earnings and discuss its outlook on Tuesday. Investors will listen to see if the company, about to become the nation’s largest Medicare Advantage company, has had any feedback from antitrust regulators who will look closely at that business.
Cognizant Technology Solutions Corp announces second-quarter results on Wednesday. The IT service provider is expected to report results slightly above analysts’ average estimate, according to Thomson Reuters StarMine. Cognizant has been benefiting from higher spending by clients in North America, especially in its healthcare unit, which accounts for nearly a third of its total revenue. Cognizant reaffirmed its full-year revenue forecast earlier this month.
CBS Corp, owner of the CBS broadcast network and cable channel Showtime, is expected to report on Wednesday second-quarter revenue marginally below consensus estimates, according to Thomson Reuters StarMine. The company has been struggling to grow revenue as advertising dollars shift to digital platforms. The results from the owner of the most-watched U.S. television network will also provide an update on the health of the U.S. advertising market.
HCA Holdings Inc, the largest for-profit hospital operator in the United States, is set to report better-than-expected second-quarter profit on Wednesday, according to Thomson Reuters StarMine, helped by an increase in hospital admissions and visits. U.S. hospitals have been reaping the benefits of Affordable Care Act, with a rise in insurance coverage resulting in increase in number of medical bills being paid.
Dish Network Corp, the second-largest U.S. satellite TV company, is expected to report second-quarter revenue and profit below analysts’ average estimate. Dish has been losing pay-TV subscribers as rivals offer discounts to both new and existing subscribers in an increasingly competitive pay-TV market. Dish has amassed spectrum in recent years without building out infrastructure to offer its own wireless service. Investors will look for details on the company’s spectrum strategy, when it posts its results on Wednesday.
Breakfast cereals maker Kellogg Co’s second-quarter profit is likely to narrowly miss analysts’ average estimate, according to Thomson Reuters StarMine, when it reports on Tuesday. Investors will look for comments on dollar impact, progress on its cost-cutting plan and performance of its U.S. morning foods business, which includes cereal, and which has reported a rise in sales only once in the past eight quarters.
Discovery Communications Inc, the operator of channels such as Animal Planet and TLC, is expected to report second-quarter results slightly above consensus, according to Thomson Reuters StarMine. Discovery’s international networks, which account for nearly half of total revenue, has seen steady growth. However, all eyes will be on the impact of a strengthening dollar and rising costs in the coming quarters, when is posts results on Wednesday.
Sprint Corp is expected to report first-quarter revenue on Tuesday above the average analyst estimate, according to Thomson Reuters StarMine. Wall Street will look out for details on whether the company’s turnaround plan has helped gain more customers.
BCE Inc, Canada’s largest telecom company, announces second-quarter results on Thursday. The company is expected to make further market share gains on wireless leader Rogers Communications and industry-leading price increases should also help profit grow. Investors are eager to hear an update on the impact of a so-called ‘double cohort’ in which a greater than normal number of customers’ phone contracts expire. Also, Canada’s Telus Corp is expected to maintain industry-leading retention of customers. Investors will look for any sign that exploding use of mobile data has plateaued when it reports second-quarter earnings on Friday.
Video game maker Activision Blizzard Inc is expected to report second-quarter revenue above the average analyst estimate, according to Thomson Reuters StarMine. The company, which raised its full-year profit and revenue forecast in May, has been benefiting from its higher-margin digital business. Investors will be looking for update on launch of new games when it reports on Tuesday. On Thursday, Farmville maker Zynga Inc is expected to report second-quarter revenue slightly above average analysts’ estimates, according to Thomson Reuters StarMine as modest bookings from new releases “Empires & Allies and FarmVille: Harvest Swap” offset declines for catalog titles.
Mosaic Co, a producer of potash and phosphate, reports second-quarter results on Tuesday. Joc O-Rourke takes over as CEO on August 5 and investors will be keen to hear his ideas about leading the company. Canada’s Agrium Inc and US-based CF Industries Holdings Inc, both nitrogen fertilizer producers, report second-quarter results on Wednesday. Of interest is an update on Agrium’s expanding potash and nitrogen production, and CF’s own nitrogen capacity expansion in the United States.
Molson Coors Brewing Co and its U.S. joint venture with SABMiller, MillerCoors LLC, will report second-quarter results on Thursday. Molson Coors has been grappling with a strong dollar reducing the value of its sales, which are already hurt by weak demand, as consumers increasingly prefer craft beers and wine. Investors will look for updates on the dollar impact and whether the increased marketing is helping revive demand.
Hershey Co, the maker of Hershey’s Kisses and Reese’s Peanut Butter Cups, cuts its full-year revenue forecast for the third time in June, hurt by weak sales in China, and also announced job cuts. The company has been aiming to grow sales outside the United States, where sales have faltered as consumers move to healthier snacks. Investors will look for updates on market conditions in China, Hershey’s reassessment of its Shanghai Golden Monkey Food acquisition and plans for further acquisitions, when it posts its results on Friday.
Graphics-chip maker Nvidia Corp is expected to report second-quarter profit below average analysts’ estimate, according to Thomson Reuters StarMine. The company had forecast lower-than-expected second-quarter revenue in May, weighed down by lower demand due to a fall in PC sales and a strong dollar. Investors will be looking for third-quarter guidance, when it posts results on Thursday.
Coach Inc, the maker of Poppy handbags, has seen nearly two years of falling sales as it steadily loses to trendier rivals such as Michael Kors and Kate Spade. Analysts feel a lack of innovation has made the handbag market “boring.” Coach is expected to report fourth-quarter sales below analysts’ estimates, according to Thomson Reuters StarMine. Investors will look out for any changes in company strategies and forecast, when it reports on Tuesday. Luxury apparel retailer Ralph Lauren Corp is expected to report a drop in first-quarter profit and sales on Wednesday. Ralph Lauren’s sales have suffered due to intense competition from fast-fashion retailers, the stronger dollar and weak demand for its clothes in its biggest market, North America. Investors will look for forecast, comments on pricing in regions affected by foreign exchange and further initiatives in e-commerce. Michael Kors Holdings Ltd posts first-quarter results on Thursday. Once the hottest handbag maker and a favorite among investors, Michael Kors is now seeing a steady drop in sales as brand fatigue sets in. While investments in Kors’ e-commerce business may pay off in the long term, higher costs will hurt profits in the coming quarters, analysts say.
On Wednesday, refiner HollyFrontier Corp is expected to report a rise in second-quarter profit, helped by higher gasoline demand and improved refining margins. A 50 percent fall in crude prices since June 2014 has propped up refining margins. Investors will look for comments on refinery utilization rates in the second half of the year, when gasoline demand is typically low.
On Friday, cable TV company Cablevision Systems Corp is expected to post a second-quarter profit below Wall Street expectations, according to Thomson Reuters StarMine. Cablevision is expected to post another quarter of video subscriber losses, as telecom companies continue to eat into its subscriber base with competitively priced internet and satellite TV packages.
On Tuesday, Hyatt Hotels Corp, the owner of the Park Hyatt, Grand Hyatt and Hyatt Regency brands of hotels, is expected to report second-quarter profit and revenue above estimates, according to Thomson Reuters StarMine. The company has benefited in the past few quarters from higher levels of business travel within the United States and increased group bookings. Investors will be interested to see if the occupancy rates improve at the company’s hotels on the back of a booming lodging cycle.
On Thursday, cable TV network AMC Networks Inc is expected to report better-than-expected second-quarter profit, according to Thomson Reuters StarMine, helped by better cost management. AMC’s costs were rising as the channel invested in original programming to make shows that would match up to its now concluded hits “Breaking Bad” and “Mad Men”. AMC is also expected to report higher ad revenue, helped mainly by the series finale of “Mad Men” in the quarter.
The world’s biggest gold producer, Barrick Gold Corp, is expected to report a drop in second-quarter earnings on a weaker gold price and as costs hit their highest level of the year. When it announces its results on Wednesday, the market’s focus will be on Barrick’s progress in meeting its target of cutting debt by at least $3 billion this year.
Wearable fitness device maker Fitbit Inc is expected to post a revenue above Wall Street expectations in its first-quarter report as a public company, according to Thomson Reuters StarMine. Fitbit is expected to benefit from strong demand in the U.S. connected activity tracker market, in which the company has an 85 percent share. Investors will closely watch this earnings report to see if Fitbit can sustain that momentum, when it announces results on Wednesday.
Weight-loss and nutritional products maker Herbalife Ltd is expected to report second-quarter profit and sales below expectations, according to Thomson Reuters StarMine. The company is likely to have been hurt by the stronger dollar, along with ongoing issues of low sales, problems in China and allegations of a pyramid scheme over the past quarters. When it reports on Wednesday, investors will be looking to see the extent of the company’s recovery plans and for any revisions to its full-year forecast.
Offshore driller Transocean Ltd is expected to report a much lower second-quarter profit on Wednesday, as day rates continue to fall due to spending cuts by E&P companies. As oil and gas companies announce further cuts in capital spending plans, investors will look out for any comments on renewal of old contracts and updates on its plans for the older rigs. The company is also expected to provide a comment on its strategy to cope with high debt.
On Tuesday, Harman International Industries Inc, the maker of JBL and Harman Kardon audio systems is expected to report fourth-quarter earnings slightly above analysts’ average estimate, according to Thomson Reuters StarMine. New orders from automakers such as BMW and Daimler are expected to offset a strong dollar which has been blunting its edge against overseas rivals in its professional audio equipment business.
Wendy’s Co, the no. 3 U.S. hamburger chain is expected to report second-quarter profit and sales below analysts estimates, according to Thomson Reuters StarMine, hurt by higher beef costs and intense competition in North America, much like market leader McDonald‘s. Wendy’s remain among a handful of U.S. restaurant chains which have not completely expanded into the breakfast category. On Wednesday, investors will be looking ahead to any comments on this section, particularly as the company seems to be struggling to attract customers.
XPO Logistics Inc’s revenue has soared in the past few quarters as its strategy of growing through acquisitions pays off. The logistics company, which reported total revenue of nearly $2.5 billion last year, has said since it was on track to achieve $9.5 billion in sales this year, mainly due to the acquisition. When it reports second-quarter results on Wednesday, investors will be looking for comments on what XPO’s dealbook looks like for the rest of the year, given the company still has some cash it raised from parties led by Singapore’s GIC.
WellCare Health Plans Inc posts second-quarter results on Wednesday. The company is expected to beat Wall Street estimates according to Thomson Reuters StarMine as the health insurer keeps medical costs low and adds more members.
GoDaddy Inc, the website-hosting and domain-registration company is expected to report second-quarter earnings slightly ahead of consensus expectations, according to some analysts. Investors will be looking for comments around growth in customer base and updates on entering new markets and how they plan on penetrating existing markets further, when it posts its results on Wednesday.
Life and mortgage insurer Genworth Financial Inc is expected to report second-quarter profit on Tuesday, in-line with analysts’ estimates, according to Thomson Reuters Starmine. French insurer AXA said in July that it is in exclusive talks to buy Genworth’s Lifestyle Protection Insurance unit, as Genworth attempts to simplify its business. The insurer’s CEO said in April that the company is also considering going private and would be open to selling its long-term care insurance unit, among other strategic options.
Time Inc, the publisher of Time, People and Sports Illustrated magazines, is expected to report second-quarter profit below analysts’ average estimate, according to Thomson Reuters StarMine. Analysts expect 2015 to be a rough year for Time as the company restructures its business and reinvest in video offerings, mobile platforms and events to compensate for declining ad revenue. When it reports on Tuesday, investors look for a breakup of the restructuring plan and details on the company’s digital roadmap.
Newspaper publisher New York Times Co is expected to report second-quarter results slightly below Street consensus, according to Thomson Reuters StarMine. New York Times, like its peers, has been under immense pressure to find new avenues of growth as print advertising revenue shrinks and spending moves toward digital ads, which are cheaper and offer quick and quantifiable returns. When it posts results on Thursday, investors will look to see how cost cuts and digital offerings can help defend profits in the near term.
The maker of “Shrek”, “Madagascar” and “Kung Fu Panda” film franchises DreamWorks Animation SKG Inc will likely report second-quarter profit below analysts’ average estimate, according to Thomson Reuters StarMine. The studio kick started a major restructuring plan earlier this year after a string of box-office misses. Whenit reports on Tuesday, investors will look for new details on restructuring and business diversification.
Offshore rig contractor Rowan Cos Plc is expected to report a higher second-quarter profit, helped by resilient demand for some high-tech rigs and lowered prices. When it reports on Wednesday, investors will for commentary on future rig demand and pricing.
Solar energy company Sunrun Inc is scheduled to start trading on the Nasdaq on Wednesday. Sunrun, which installs and maintains solar panels for homes, has about 79,000 customers across 13 states as of March 31. The residential solar market in the United States has grown dramatically in recent years, largely due to cheap prices for panels, particularly those made in China. Separately, the initial public offering of budget fitness chain Planet Fitness Inc is scheduled on Thursday. The company, majority owned by buyout firm TSG Consumer Partners, has more than 950 fitness centers in the United States, most of which are franchised.
On Tuesday, Halyard Health Inc, which makes surgical masks and gowns, is likely to report lower-than-expected second-quarter profit, according to Thomson Reuters StarMine, hurt by a stronger dollar. Halyard Health, which was spun-off from Kimberly-Clark in November, gets nearly a fourth of its sales from outside the United States.
Canada’s economy is likely to add 9,900 jobs in July, countering a shed of 6,400 jobs in June. Coupled with the job data on Friday, the unemployment rate for July is expected to hold steady at 6.8 percent. (0830/1230) On Wednesday, data from the Statistics Canada is expected to show a trade deficit of C$2.80 billion in June, compared to a shortfall totaled C$3.34 billion in May. (0830/1230)
Mexico’s May gross fixed investment data will be released on Tuesday. On Thursday data will show how consumer confidence fared in July after hitting a 7 month high in June. On Friday the statistics office will release inflation data for July after the indicator reached a new record low of 2.76 percent in the first half of the month. Separately, on Thursday, the national automakers’ association of Brazil releases data for auto production for the month of July. Also, inflation in Brazil as measured by the IGP-DI price index is due on Friday.
American International Group Inc, the No. 1 commercial insurer in the United States and Canada, is likely to report another decline in second-quarter earnings due to low interest rates, weak insurance prices and muted returns from alternative investments. Industry rates for commercial property and casualty insurance - AIG’s strong suit - fell for the third quarter in a row and analysts said this week that they expect this to persist. Analysts also say the $28.3 billion Ace-Chubb deal could put even more pressure on commercial property and casualty insurers to consolidate. Investors will keep an eye out for M&A hints.
The auto industry is scheduled to report sales for the month of July and analysts expected the U.S. automakers to report a seasonally adjusted annual rate of 17.20 million units in the month from June’s 17.16 million units. (1330/1730)
Federal Reserve Board Governor Jerome Powell speaks in Washington on “The Structure and Liquidity of Treasury Bond Markets” before the Brookings Institution’s “Are There Structural Issues in the U.S. Bond Markets?” conference.
AllState Corp, the largest publicly traded home and auto insurer, which has reported better-than-expected quarterly profit in the past eight quarters, is expected to report better-than-expected second-quarter results, according to Thomson Reuters StarMine. The company has increased fixed-income purchases by about 60 percent, according to its annual filing, amid warnings on Wall Street that abstinence from market-making could trigger wide price swings during a crisis. Investors will be interested in the company’s expansion plans and what it plans to do to sustain growth.
HSBC Holdings Plc reports its first-half results, amid an ongoing review as to whether it should move its headquarters and a long-running cost cutting campaign that’s seen it shed 50,000 jobs and sell businesses in Brazil and Turkey, among others. Chief Executive Stuart Gulliver has pinned the bank’s hopes on a pivot towards Asia and streamlining the investment banking unit’s balance sheet.
Oil and gas producer Noble Energy Inc is expected to report a much lower first-quarter profit, hurt by weak oil prices. The focus this quarter will be on the company’s plans for its U.S. shale operations. Noble acquired peer Rosetta Resources in May to enter two top U.S. shale fields- Eagle Ford and Permian Bain. The deal also helps Nobel reduce its dependence on international assets in politically unstable regions such as in Israel’s offshore Leviathan gas field or in the Falkland Islands.
Loews Corp is expected to report a fall in second-quarter profit, hurt by lower revenue from its second-biggest subsidiary, Diamond Offshore Drilling. CNA Financial, Loews largest subsidiary’s earnings are also expected to be hurt by lower investment income. Loews, which is controlled by New York’s wealthy Tisch family, has over the years trimmed CNA’s operations to focus on property & casualty business.
Diamond Offshore Drilling Inc, one of the largest offshore drilling contractors in the world, is expected to report a lower second-quarter profit as oil and gas producers slow down drilling activity amid a steep fall in crude prices. Diamond Offshore, which has 33 rigs, said in May it would scrap three rigs. Investors will want to know if the company plans to scrap more rigs. They will also want to know about the company’s expectations for demand and pricing, particularly for high-priced ultra-deepwater rigs.
LIVECHAT: MARKETS PREVIEW - Brian Jacobsen, Wells Fargo Funds Management It's a big week for U.S. data, with ISM, manufacturing and the all-important labor figures lined as the corporate reporting season heads into its final big week before tapering toward consumer and retail names. Brian Jacobsen, chief portfolio strategist at Wells Fargo Asset Management, returns to the Forum to preview market activity ahead of the data. (1000/1400) Separately, Alpha Now analyst Greg Harrison scores the best and the rest from the U.S. earnings season. Over a lackluster hump in the earnings season, Harrison returns to the Forum to give some perspective on the winners and losers and what second-quarter said about what to expect in the third-quarter. (1100/1500) To get into the conversation, click here: bit.ly/1kTxdKD
Mexico’s PMI will show how factory sentiment fared in July, after reaching a nearly 1-year low in June. Mexico’s central bank will also release its most recent growth and inflation poll, which will show if analysts further cut their 2015 growth forecast from 2.6 percent in the prior survey. Separately, Brazil’ government data will show the figures for trade balance. (1400/1800) (Compiled by Nivedita Balu, Editing by Sriraj Kalluvila)