February 9, 2015 / 8:29 PM / 3 years ago

What to Watch in the Day Ahead - Tuesday, Feb. 10

(The Day Ahead is an email and PDF publication that includes the day’s major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT)

Coca-Cola Co is scheduled to report fourth-quarter results. Investors will be looking for an update on the progress og the soft drink giant’s announced $3 billion cost savings plan.

Pharmacy chain operator CVS Health Corp is expected to benefit from high prescription growth in the fourth quarter, helped by a strong cold/flu season. The company’s specialty drugs, and pharmacy benefits businesses are expected to do well. Results will, however, likely be pressured in the aftermath of the discontinuation of the tobacco business. The year-earlier quarter was the last full quarter to include tobacco sales. Sales are expected to miss estimates, according to Thomson Reuters StarMine data. Investors will be interested in any update to forecast.

Regeneron Pharmaceuticals Inc releases its fourth-quarter results, which will be driven by its blockbuster eye drug, Eylea. Its quarterly sales, preannounced in January, have beaten expectations, likely driven by a rising demand in patients with a type of diabetes-related swelling of the retina. Investor will be looking for any commentary on the progress and commercial potential of three likely blockbuster biotech drugs the company is developing with France’s Sanofi SA.

UBS Group AG, a Switzerland-based bank and investment manager, reports fourth-quarter and full-year results. Chief Executive Sergio Ermotti will address journalists.

Billionaire businessman Carlos Slim’s flagship company, America Movil, will report fourth-quarter results after the markets close. The phone company has been struggling to increase revenue as it faces tougher regulation in its biggest markets, Mexico and Brazil.

The No. 1 U.S. advertising company Omnicom Group Inc is expected to report a fourth-quarter profit well below average analyst estimate, mainly hurt by a weaker euro. However, the U.S. advertising market is expected to remain strong with companies such as Walt Disney and Viacom indicating that advertising spending is expected to return to television. The company has been looking to make acquisitions in the digital and social media space to deal with competition from Internet advertising companies such as Google and Yahoo. Analysts will be looking for guidance in the context of volatile foreign exchange rates.

The U.S. Commerce Department releases Wholesale Inventories, which are expected to have increased 0.2 percent in December. (1000/1500) Meanwhile, the National Federation of Independent Business issues Small Business Optimism Index for January. (0900/1400) In a separate report, U.S. Labor Department issues Job Openings and Labor Turnover Survey for December. (1000/1500)

Private equity firm KKR & Co LP is expected to report a decline in fourth-quarter earnings, as it fails to beat the cash it generated from assets sales a year ago.

Molson Coors Brewing Co is likely to report a fourth-quarter profit below analysts expectations, according to Thomson Reuters StarMine data. The company said in Novemebr it would be increasing marketing spending to boost sales which declined for four of the last five quarters. It had also warned of currency hurting results in the quarter, particularly in Canada. The beermaker had lso said it was engaged in discussions for potential acquisitions, so investors will also be looking out for any deal announcements.

Starwood Hotels & Resorts Worldwide Inc has been hurt by political instability in its international markets as well as a strengthening dollar. the operator of Sheraton and Westin chains, which has nearly half its properties outside North America, said in October its 2014 profit would be hurt by asset sales and leased hotel being converted to franchised contracts. Investors will be looking for comment on expected trends in 2015, especially since Starwood is the first of U.S. hoteliers to report fourth-quarter results.

Federal Reserve Bank of Richmond President Jeffrey Lacker will speak on “Education, Innovation and Economic Growth” before the the 30th Annual Emerging Issues Forum, Innovation Reconstructed. (0820/1320) Separately, Federal Reserve Division of Banking and Supervision Deputy Director Maryann Hunter will testify on “Community Banks” before the Senate Banking Committee. (1000/1500)

Internet content delivery service provider Akamai Technologies Inc is expected to report revenue slightly above analysts’ estimate according to Thomson Reuters StarMine data. Akamai has said that a stronger U.S. dollar would hurt revenue growth in the fourth quarter.

The world’s largest money-transfer company Western Union Co’s fourth-quarter results are expected to be in line with estimates, according to Thomson Reuters StarMine data. Western Union is facing price competition from its largest competitor, MoneyGram, which has cut prices to recover lost business from Wal-Mart’s new in-store offering.

Talisman Energy Inc, which in December agreed to be bought by Spanish peer Repsol, is expected to report a smaller loss in the fourth quarter due to cost cutting as it grapples with a slump in global crude prices. The company has been cutting jobs and is planning to sell assets. Investors will be looking for the company’s dividend, capital budget and production plans for 2015.

The largest U.S. milk processor Dean Foods Co is likely to report a fourth-quarter profit above analysts expectations, according to Thomson Reuters StarMine. The company had forecast in November its first quarterly adjusted profit in a year citing cost cuts and a steep fall in butterfat prices. Raw milk prices, after rising for years due to growing milk exports, have declined as production in the United States and Europe increase, and are expected to come down further in 2015 which will help boost margins. Investors will be looking out for comments on milk prices this year and the company’s forecast.

Kinross Gold Corp, the world’s fifth-biggest gold producer, is expected to report an adjusted profit compared with a loss a year ago, helped in part by lower costs in its large Russian operations where the rouble has slumped. The market will be looking for an update on plans to expand the Tasiast mine in Mauritania after Kinross’ CEO said in October that it was likely the company would not proceed with development if gold prices did not recover. When the company will announces its fourth-quarter and full-year results, the investors will also be looking for an update on the Russian operations and if Western sanctions are having any impact.

Real estate website operator Zillow Inc is expected to report a fourth-quarter profit slightly below analysts’ average estimate, according to Thomson Reuters StarMine data. Analysts said a decline in display revenue and a sequential deceleration in average revenue per user are likely to hurt sales. Investors are looking forward to the benefits expected after the completion of the company’s acquisition of Trulia.

Texas Instruments Chief Executive Rich Templeton will give a speech at a Goldman Sachs annual tech conference in San Francisco. Alibaba’s vice-chairman Joseph Tsai will also make a rare appearance.

Bank executives including Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley’s Greg Fleming, who oversees wealth and asset management, and Citigroup’s U.S. consumer banking chief, Jane Frazer, will give presentations at a Credit Suisse conference.

In the first Bank of Canada speech since its dramatic rate cut on Jan. 21, Senior Deputy Governor Carolyn Wilkins will address the Ottawa Economics Association on “Minding the Labour Gap”. (Compiled by Sourav Bose in Bengaluru; Editing by Joyjeet Das)

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