By Ben Fox Rubin
Earnings season continues next week with a focus on Internet
companies, insurers and media firms. The most notable names include
Facebook, AIG, Visa and MasterCard.
Other market-moving news should come from April's payroll data
on Friday and a Fed policy meeting.
Facebook Among Crop of Internet Firms Reporting
Facebook Inc. (FB), which reports Wednesday, has made progress
in its major push to improve its presence in the mobile space, with
its fourth quarter showing improved mobile-ad revenue and
mobile-user numbers. While that trend is expected to continue, the
world's largest social network still needs to contend with high
expectations from Wall Street, as its stock price has generally
flattened out in recent months and is still nowhere near its
initial public offering price. Analysts polled by Thomson Reuters
expect a first-quarter profit of 12 cents and revenue growth of 36%
to $1.44 billion.
Other Internet firms reporting next week are LinkedIn Corp.
(LNKD), Yelp Inc. (YELP), OpenTable Inc. (OPEN) and Shutterfly Inc.
(SFLY).
Visa, MasterCard Quarterly Results also Wednesday
Visa Inc. (V) and MasterCard Inc. (MA) also will come out with
their results Wednesday, providing key details on consumer spending
levels during the sluggish economy.
Credit-card spending growth has been muted recently, as the
traditionally lighter first quarter faces pressure from higher
payroll taxes and delayed tax refunds. Nomura said this week that
it expects MasterCard's consumer-credit processing business to be
pressured by weak volume growth from Citigroup Inc. (C), its
largest U.S. card issuer, while Visa is expected to outperform its
peer amid a few contract wins.
Wall Street expects Visa will post 13% growth in per-share
earnings, and MasterCard will report a 15% gain.
Media Firms, Insurers and More
There will be no lack of big-name companies reporting next week,
with groups of movie and TV companies and insurers both coming
out.
Media firms will include Time Warner Inc. (TWX), CBS Corp.
(CBS), Comcast Corp. (CMCSA) and Viacom Inc. (VIA).
Also, insurers American International Group Inc. (AIG), Hartford
Financial Services Group Inc. (HIG), Prudential Financial Inc.
(PRU), and MetLife Inc. (MET) will report.
Additional large and notable companies reporting include health
insurers Aetna Inc. (AET) and Humana Inc. (HUM), restaurant
companies Bloomin' Brands Inc. (BLMN) and Domino's Pizza Inc.
(DPZ), pharmaceutical firms Pfizer Inc. (PFE) and Merck & Co.
(MRK), nutritional-supplements maker Herbalife Ltd. (HLF) and
utility giant Duke Energy Corp. (DUK).
April Payroll, Fed Meeting Next Week
Each day of next week will usher in top-tier news on the
economy. The most important report will be next Friday's payrolls
report, but the other highly significant event of the week will be
another policy meeting at the Federal Reserve.
Economists do not expect much change in Fed policy, and the
consensus view is that next week's economic reports will look
sluggish as the U.S. hits another spring slowdown.
March payrolls disappointed, with only 88,000 jobs added.
Economists expect a better increase in April, but not by much. The
median forecast calls for nonfarm payrolls to increase 150,000 in
April. The jobless rate is forecast to remain at 7.6%.
Patriot Coal, Kodak Bankruptcy Proceedings
The St. Louis bankruptcy court next week will host a trial over
whether Patriot Coal Corp. (PCXCQ) can impose wage and benefit
concessions upon its unionized miners and retirees.
Beginning Monday, Patriot will argue for the right to shed
obligations it says are unsustainable and may keep it from
successfully reorganizing.
On Wednesday, a Manhattan bankruptcy judge will take up Eastman
Kodak Co.'s (EKDKQ) plan to sell some of its document-imaging
assets to Brother Industries Ltd. (BRTHY) for $210 million, subject
to higher bids at auction.
--Andrew R. Johnson, Kathleen Madigan and Jacqueline Palank
contributed to this story.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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