By Ben Fox Rubin
H&R Block Inc. (HRB), Smithfield Foods Inc. (SFD) and
Navistar International Corp. (NAV) are among a small group of names
reporting next week during a light week for earnings.
Still, there should be considerable excitement from perfume
maker Coty Inc.'s IPO, which is expected to raise over $1
billion.
Also, the data calendar will include information on retailing
and the industrial activity.
Diamond Foods, Annie's, Smithfield Foods Reporting
Diamond Foods Inc. (DMND), which reports Monday, has seen its
stock tumble since late 2011 when revelations that the company had
wrongly accounted for payments to walnut growers forced out
Diamond's CEO and chief financial officer, scuttled a $2.35 billion
deal to buy Pringles and caused Diamond to restate several
financial reports.
The company, whose products include Kettle chips, Emerald snack
nuts and Pop Secret popcorn, is expected to post a narrower loss in
the latest period but 15% lower revenue, according to analysts
polled by Thomson Reuters.
Other food companies reporting next week are organic foods maker
Annie's Inc. (BNNY) and pork-producer Smithfield Foods Inc. (SFD),
which recently agreed to be acquired by Shuanghui Group for about
$4.8 billion.
H&R Block Expected to See Strong Tax Season
H&R Block Inc. (HRB) reports Wednesday on its most crucial
period of the year.
The tax preparer reported a wider loss in its prior quarter, as
a delay to the start of the U.S. tax season pushed down the
company's revenue. Despite that recent weakness, H&R Block
could see the delay shifting some profits into the latest period.
It's expected to post a 28% rise in income and a 13% increase in
revenue.
H&R Block usually fares better in the fiscal second half
after posting losses in its fiscal first half because of the
seasonal nature of tax preparation.
The company has turned its focus back to its core
tax-preparation business, after shedding its brokerage and
mortgage-lending operations. At the same time, H&R Block has
worked to bolster its software offerings to compete with
tax-software leader Intuit Inc. (INTU) and to attract more online
tax filers.
Others reporting next week include commercial-truck maker
Navistar International Corp. (NAV), Pep Boys-Manny Moe & Jack
(PBY), Restoration Hardware Holdings Inc. (RH) and Men's Wearhouse
Inc. (MW). From Canada, women's yoga and activewear apparel maker
Lululemon Athletica inc. (LULU) is reporting.
Coty Initial Public Offering Expected
Coty Inc.'s long-awaited IPO is expected to come out next week,
with the offering expected to hit over $1 billion.
The perfume maker first filed to go public 11 months ago,
shortly after its unsolicited attempt to buy Avon Products Inc.
(AVP) with the help of Warren Buffett fell flat. At that time, Coty
said it expected to raise as much as $700 million, a placeholder
figure.
The company won't receive any proceeds from the debut. Instead,
the majority owner Joh. A. Benckiser will be selling a stake worth
$806 million at the upper end of the expected price range, while
private-equity firms Berkshire Partners and Rhone Capital are both
selling equal stakes worth $126 million at the upper range.
Other companies expected to go public next week are
networking-hardware company Gigamon Inc. and Aratana Therapeutics
Inc., which develops prescription medications for cats and
dogs.
Retail and Industry Data Expected
After Friday brought the all-important look at May labor
markets, next week government agencies will report how retailing
and the industrial activity fared last month.
Annual revisions to the monthly retail data, released May 31,
showed that, except for car-buying, shoppers were less enthusiastic
about spending in April. The Commerce Department will report May
sales on Thursday, and economists expect a modest rebound took
place last month.
Industrial output is on tap next Friday. Early surveys of
manufacturers showed activity was weak or contracting last
month.
Additionally, the Federal Reserve will report on production
levels for manufacturers, utilities and mines.
Kodak Gets Closer to Exiting Bankruptcy
Eastman Kodak Co. (EKDKQ) will seek to step closer toward the
exit from bankruptcy protection by asking a judge to let its
creditors start voting on its restructuring plan.
The Manhattan bankruptcy court on Thursday will review Kodak's
disclosure statement, the outline of its restructuring plan that
creditors will use to cast their votes.
That plan, which Kodak will ask the court to review in August,
would see Kodak exit Chapter 11 protection under the control of its
bondholders and unsecured creditors. Bondholders owed $375 million
would get 85% of Kodak's new common shares, while unsecured
creditors--a group that includes retirees--would get the remaining
15% on account of claims worth as much as $2.2 billion.
-Kathleen Madigan and Jacqueline Palank contributed to this
article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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