By Ben Fox Rubin
Next week will bring a handful of big-name companies reporting
quarterly results, though the earnings calendar remains relatively
quiet between earnings seasons.
Also, a raft of IPOs are expected, along with U.S. housing and
factory data.
Barnes & Noble Nook Woes
Following dismal results for its Nook digital business in its
prior quarter, Barnes & Noble Inc. (BKS) Chief Executive
William Lynch acknowledged that the company has "to change," but
provided few details.
The division--which includes e-readers, tables and e-books--led
the company to post a small loss in the previous quarter and has
lagged behind larger tech firms such as Amazon.com Inc. (AMZN) and
Apple Inc. (AAPL) in the tablet wars.
Since then, rumors of Microsoft Corp. (MSFT) offering to buy the
Nook business caused the stock to fluctuate wildly.
Analysts polled by Thomson Reuters predict the company, which
reports Tuesday, to close out its fiscal year with a
fourth-straight loss and a 4% drop in revenue.
Other retailers reporting next week include drugstore chain
Walgreen Co. (WAG), home-goods company Bed Bath & Beyond Inc.
(BBBY) and athletic-gear company Finish Line Inc. (FINL).
General Mills, ConAgra to Report
General Mills Inc. (GIS), which reports Wednesday, is expected
to post 11% lower earnings despite a 6% rise in revenue.
General Mills and other food companies have tamed price
increases and started to see sales volumes recover, albeit slowly.
General Mills has selectively lowered prices even in some
categories, like on its U.S. yogurt business, and increased
in-store merchandising to spur sales as well. The company's U.S.
sales are being buoyed by new increased sales of snacks, baking
products and soups, but two of its largest categories, cereal and
yogurt, have slumped.
General Mills makes Cheerios cereal, Betty Crocker baking
products and Green Giant frozen vegetables, among other brands.
Also, ConAgra Foods Inc. (CAG), the maker of Hunt's ketchup and
Slim Jims, reports Thursday.
Monsanto, Smith & Wesson, Carnival
The short earnings calendar will also include agribusiness giant
Monsanto Co. (MON), gun maker Smith & Wesson Holding Corp.
(SWHC), cruise-line company Carnival Corp. (CCL) and Apollo Group
Inc. (APOL), operator of the University of Phoenix.
Large Group of IPOs Expected
A big group of companies are expected to go public next week,
including CDW Corp. and HD Supply Holdings Inc.
CDW, an electronics vendor, was acquired by private-equity firms
Madison Dearborn Partners LLC and Providence Equity Partners Inc.
for $7.3 billion in 2007. The company sells computers, software and
other products to businesses, government and health-care customers,
and suffered annual losses for three years after it was taken
private. The IPO could raise up to $738 million, according to CDW's
filing with the Securities and Exchange Commission.
HD Supply, the former commercial-supply arm of Home Depot Inc.
(HD) has filed plans for an IPO of over $1 billion. HD Supply was
bought by private-equity firms Bain Capital LLC, Carlyle Group LP
(CG) and Clayton, Dubilier & Rice Inc. for $8.5 billion in
2007.
The industrial-distribution company specializes in maintenance,
repair and operations, infrastructure and power and specialty
construction.
Housing and Factory Data Expected
Next week's data calendar is heavy on housing numbers and will
offer a look at new demand for factory goods.
Economists surveyed by Dow Jones Newswires expect good numbers
from the U.S. housing and manufacturing sectors. Investors may not
like that because positive numbers on the U.S. economy likely will
move the Federal Reserve closer toward tapering off its bond-buying
program.
On the housing front, the coming week will see reports on home
prices, new home sales and pending sales for existing homes.
New home sales, out Tuesday, should show demand was solid in
May, just as mortgage rates began to rise. The median forecast
expects a 2.2% increase to an annual rate of 464,000.
Kodak Moves Closer to Bankruptcy Exit
Eastman Kodak Co. (EKDKQ) next week will seek court approval to
let its creditors start voting on its latest restructuring plan,
which offers improved payment terms to two key creditor groups.
The Manhattan bankruptcy court on Tuesday will review Kodak's
disclosure statement, or restructuring-plan outline, which its
creditors will use to vote on the plan.
That plan now calls for a $406 million rights offering. Kodak
plans to use the proceeds from the sale of 34 million new common
shares to pay off bondholders owed $375 million. Previously, the
bondholders were to have received equity in the restructured
Kodak.
--Kathleen Madigan and Jacqueline Palank contributed to this
article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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