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Dow company Walt Disney Co is expected to report higher first-quarter revenue after strong results at its theme parks and TV networks. Analysts on average are expecting revenue of $12.2 billion and earnings of $1.10 per share, according to Thomson Reuters I/B/E/S.
U.S. service sector activity is expected to have grown at a steady clip in April, but an expected widening of the nation’s trade deficit on the back of a stronger dollar would serve as a reminder of the headwinds still facing the economy. The Institute for Supply Management is expected to report that its services gauge held at 56.3 in April, while data from the Commerce Department is expected to show that the U.S. trade gap widened to $41.3 billion in March from $35.4 billion in February. (1000/1400)(0830/1230)
Sprint Corp, the No.3 U.S. wireless carrier, will report its first-quarter results as it continues to step up promotions and pricing plans to attract subscribers in the middle of its turnaround plan. Analysts say Sprint’s cash flow has been squeezed, with heavy investments in network upgrades. Investors will keep an eye out for the company’s capital spending plan as well as signs that it may need to consider raising additional funds.
Discovery Communications Inc, the owner of Animal Planet and the Discovery Channel, is expected to report a first-quarter profit above the average analyst estimate, according to Thomson Reuters StarMine. The company, which forecast strong growth in its networks outside the United States, said better pricing would boost its U.S. advertising revenue in 2015.
Satellite TV company DirecTV is expected to post first-quarter revenue above the average analyst estimate, according to Thomson Reuters StarMine data. DirecTV, which is being bought by telecom company AT&T, is expected to benefit from higher subscription fees, even as it loses customers to rivals such as Time Warner Cable, which attracts subscribers by offering bundled Internet and phone connections. Investors will be looking for DirecTV’s outlook for the remainder of 2015.
News Corp reports first-quarter results after the markets close, providing some hints on whether declines in global print advertising have eased. Executives are expected to provide updates on the company’s efforts to expand into online real estate services.
Mylan NV, at the center of a high-stakes three-way acquisition drama among generic drug makers, is expected to report higher first-quarter profit and sales. But quarterly results will take a back seat as investors look for management commentary on the company’s strategy to buy Perrigo and fend off a takeover by Teva Pharmaceuticals.
Toronto-based gold producer Kinross Gold Corp is expected to report weaker first-quarter earnings due to lower gold prices. A weaker rouble is expected to benefit Kinross’s flagship Kupol mine in Russia in terms of costs. Investors are likely to ask Kinross, whose production levels will fall sharply toward the end of the decade, about its acquisition plans.
Crude oil refiner Western Refining Inc is expected to report a higher first-quarter profit as low oil prices help push up margins. Gains from weak crude prices were reflected in the company’s recent 13 percent dividend raise. Investors will want to know how a marginal rise in crude prices affects the company’s results in the coming quarters.
Oil and gas producer Noble Energy Inc is expected to report a much lower first-quarter profit, hurt by weak oil prices. Noble had cut about 220 jobs in the United States and investors will seek details about any further cost cuts and about capital plans for 2015.
Canada’s Agrium Inc reports first-quarter results after the markets close. Of interest is any update on ramping up production at the company’s Saskatchewan potash mine and outlook on planting and spending by U.S. farmers. U.S. grain-handling and food processing company Archer Daniels Midland Co also reports first-quarter results before the markets open.
Kellogg Co, the world’s largest maker of breakfast cereals, has said it expected adjusted net sales to be flat this year, with adjusted earnings staying flat or falling 2 percent. The company, which gets about a third of its revenue from outside North America, also warned of a challenging macroeconomic environment this year due to the stronger dollar. Kellogg reports first-quarter results before the markets open. Analysts expect cost savings from Kellogg’s ongoing “Project K” and higher spending on advertising and promotions to have helped the company.
Estee Lauder Cos Inc is expected to report third-quarter sales below analysts’ expectations, according to Thomson Reuters StarMine data, as a stronger dollar eats into sales from markets outside the United States. Estee had earlier cut its full-year profit forecast to reflect a rise in the dollar. However, the Chinese government will reduce import duty on consumer products from June to boost consumer spending. Analysts say the move bodes well for the company. Investors will look for updates on Estee’s full-year forecast.
Exchange and clearing house operator Intercontinental Exchange Inc is expected to report higher first-quarter earnings, helped by a rise in energy futures and U.S. equities trading volumes.
Home and auto insurer Allstate Corp is expected to report better-than-expected revenue and profit for the first quarter, according to Thomson Reuters StarMine data. The company had a dream fiscal year 2014 as it beat estimates in all the four quarters. Allstate maintained its combined ratio outlook for 2015 and investors will be interested in what the company plans to do to sustain growth.
Online lender LendingClub Corp is expected to report a first-quarter loss, hurt by higher expenses and low interest rates. The company has cut its rates nearly four times in the past year due to increasing competition in the small business lending industry.
Och-Ziff Capital Management Group, one of only a handful of publicly traded hedge fund companies, is expected to benefit from inflows into its credit and real estate funds. The conservatively run company, which reports first-quarter results, is known for delivering strong returns with less volatility than peers and has drawn investments from pension funds, private bank clients, and foreign governments in recent years.
Online commerce company Groupon Inc is expected to post a first-quarter profit above Wall Street’s expectations, according to Thomson Reuters StarMine data. Investors will be looking for the company’s plans and outlook for the remainder of 2015.
Electronic Arts Inc, the publisher of the “FIFA” and “Madden NFL” video games, is expected to report fourth-quarter revenue above analysts’ estimates, according to Thomson Reuters StarMine data, driven by strong sales of its sports titles. EA is expected to benefit from advertising on mobile devices and from charging gamers for additional features for its online games.
Nutrition products maker Herbalife Ltd, which is in a war with activist investor Bill Ackman, is expected to report first-quarter sales below analysts’ expectations, according to Thomson Reuters StarMine data, hurt by a stronger dollar that reduces the value of sales from markets outside the United States. The U.S. government is investigating the company after Ackman’s campaign accused it of working as a pyramid scheme. Latest developments include Ackman saying Herbalife executives are hiring their own criminal lawyers as investigations heat up. Investors will be interested in any updates related to the investigation and the company’s forecast.
Hyatt Hotels Corp, the owner of the Park Hyatt and Grand Hyatt brands, is expected to report first-quarter revenue and profit above analysts’ estimates, according to Thomson Reuters StarMine. The company, which gets more than three-fourths of its revenue from the United States, has benefited from the increase in business travelers and tourists traveling to the United States. Investors will be interested in whether group bookings bring in more revenue, signaling growing confidence in the U.S. economy.
Office supply retailer Office Depot Inc is expected to report first-quarter sales below the average analyst estimate, according to Thomson Reuters StarMine data, hurt by continued weak demand for office products such as pens and paper in North America. Office Depot will not provide outlook or hold a conference call, due to its proposed merger with larger rival Staples. Investors will be interested in any updates on the deal.
Canada’s trade deficit is expected to have narrowed again in March to C$850 million ($702 million) from C$984 million. Analysts will watch for the impact of the stabilization in oil prices on exporters. (0830/1230)
Mexico’s central bank will release its private sector survey on inflation and growth after analysts lowered growth expectations to 2.95 percent and saw inflation of 3.11 for 2015 in the prior survey.
LIVE CHAT: Scilla Huang Sun, portfolio manager of the Julius Baer Luxury Brands Fund at Swiss & Global AM, looks at consumer spending power. Scilla Huang Sun, portfolio manager of the Julius Baer Luxury Brands Fund at Swiss & Global Asset Management, discusses the health of consumer spending, particularly across emerging markets, at 0400 ET (0800 GMT). To join the Global Markets Forum, click here bit.ly/1kTxdKD
Compiled by Ayesha Sruti Ahmed in Bengaluru; Editing by Kirti Pandey