Earnings season is beginning to wind down, but the second full
week of February will still be full of earnings reports from a
variety of companies.
Companies as diverse as McGraw-Hill (NYSE:
), Michael Kors (NYSE:
), Goodyear Tire (NASDAQ:
), Cisco (NASDAQ:
), Zillow (NASDAQ:
), Weight Watchers (NYSE:
), Cabela's (NYSE:
), Pepsico (NYSE:
), and Goldcorp (NYSE:
) will all report earnings during the week.
McGraw-Hill will report earnings on Tuesday. In a typical
quarter, the holding company generally wouldn't attract much
investor attention, but this isn't a typical quarter. McGraw-Hill
has become a hot stock over the last week as it is the parent
company of the ratings agency Standard & Poor's.
Last Tuesday, the Obama administration sued S&P over its
rating of mortgage-backed securities and CDOs, alleging that the
faulty ratings contributed to the global financial crisis. The
government is seeking $5 billion in a civil lawsuit -- a little
less than one-third of McGraw Hill's market cap.
But The Benchmark Company's Ed Atorino isn't concerned. He
reiterated his Buy rating last week and $57 price target. Atorino
believes that McGraw-Hill will report a strong quarter on Tuesday,
though he freely admits that the market might not give the company
credit for it.
"[The lawsuit] is totally politically motivated," Atorino told
Benzinga. "[S&P] has done nothing wrong. Ratings don't predict
Fashion designer and retailer Michael Kors (NASDAQ:
) is also set to report Tuesday. Analysts currently expect the
company to post earnings per share of $0.41 on revenue of $540.30
Since the company's IPO in late 2011, shares of Michael Kors are
up well over 130%. In the last three months alone, shares have
rallied just over 13%.
Despite the move to the upside, analysts at Morgan Stanley
remain bullish with an Overweight rating and $68 price target.
"KORS is our top pick into earnings," Morgan Stanley states.
"KORS is a leading retail growth story with high estimate
achievability in our view. The company continues to capitalize on
the unique advantage created by founder Michael Kors' fame."
Networking giant Cisco will follow on Wednesday. Analysts expect
the company to report an earnings per share figure of $0.48 on
revenue of $12.06 billion. Over the last three months, shares are
up well over 25%.
Analysts at Citigroup remain positive on Cisco. In a note
released Friday, they reiterated their Buy rating and $24 price
"We expect revenues will be at least in line with management's
guidance," Citigroup writes. "Further, we expect sequential growth
in switching and routing. By geography, we expect to see relative
strength from North America and potential for Europe to beat very
On the economics front in the U.S., investors will get data on
retail sales Wednesday and industrial production and consumer
Internationally, the Chinese New Year -- which lasts the whole
week -- will keep the Shanghai stock exchange closed all five days.
The Hong Kong exchange will be closed Monday, Tuesday and
Wednesday, while Singapore will only be closed Monday.
Japan's market is also closed Monday, but for Founder's Day.
Brazil's stock exchange will be closed Monday through Thursday due
Overall, the market should continue to be dominated by earnings
reports throughout the week. Without any political headlines, the
market might continue to trade on fundamentals. Risks out of Asia
should be limited with the holiday, but Europe might continue to
represent a threat to the bulls.
Earnings from: American Financial (NYSE:
), Nielsen Holdings (NYSE:
), Loews (NYSE:
) China, Japan, Hong Kong, Singapore and Brazil Markets Closed
Earnings from: Coca-Cola (NYSE:
), McGraw-Hill, Western Union (NYSE:
), Level 3 Communications (NYSE:
), Rackspace Hosting (NYSE:
), Michael Kors, Goodyear Tire China, Hong Kong and Brazil Markets
Closed; U.S. Federal Budget Balance (Expected -$2B); South Korean
Unemployment Rate (Prior 3%)
Earnings from: Comcast (NASDAQ:
), CenturyLink (NYSE:
), Dean Foods (NYSE:
), Whole Foods (NASDAQ:
), Zillow, Lorillard (NYSE:
) China, Hong Kong and Brazil Markets Closed; U.S. Core Retail
Sales (Expected 0.1%); Japanese GDP (Expected 0.1%)
Earnings from: Cabela's, Pepsico, Goldcorp, Alpha Natural Resources
), Molson Coors (NYSE:
) China and Brazil Markets Closed; German GDP Expected (Expected
-0.5%); Eurozone GDP (Expected -0.4%)
Earnings from: JM Smucker (NYSE:
), Campbell Soup (NYSE:
) Chinese Market Closed; U.K. Retail Sales (Expected 0.8%
Year-over-Year); U.S. Industrial Production (Expected 0.2%
Month-over-Month); U.S. University of Michigan Consumer Sentiment
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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