por admin » Dom Ago 19, 2012 8:04 pm
Reportan: Dell, HPQ, etc.
Next Week’s Tape: Dell, H-P Top Earnings Parade
By Nathalie Tadena
Technology heavyweights Dell Inc. (DELL) and Hewlett-Packard Co. (HPQ) will report their latest quarterly results next week, giving further insight into how the companies are coping with soft personal-computer sales and changing industry trends. Several retailers are also set to release earnings next week.
Among the economic reports due next week are July new-home and existing-home sales, as well as minutes from the most recent meeting of Federal Reserve’s Federal Open Market Committee.
Weaker Results Expected from Dell, H-P
Analysts polled by Thomson Reuters expect Dell and H-P, which report earnings Tuesday and Wednesday respectively, to post another quarter of weaker top- and bottom-line results.
Both companies face a slowdown in PC sales as consumers instead focus their attention on mobile devices.
Dell has been attempting to move beyond its core PC business and boost its results by acquiring higher-margin businesses, including data-storage, security and networking technologies. However, the company issued a cautious outlook in May for the fiscal second quarter and noted some customers were holding back on big purchases.
Rival H-P has been trying to boost its services business with its own offerings in areas such as cloud computing and by signing fewer, more profitable deals. However, the company has said the turnaround could take three to five years and said earlier this month it will write down the value of its technology-services business by about $8 billion. In May, the company unveiled plans to lay off 27,000 of its workers–about 8% of its workforce–as part of a restructuring plan to stem its declining profits and revenues.
Earnings from Retail Segment Continue
Several retailers are scheduled to report earnings next week, including home-improvement retailer Lowe’s Cos. (LOW) and electronics retailer Best Buy Co. (BBY).
Lately, business has been strengthening for Lowe’s, which in May reported a 14% increase in first-quarter earnings. However, it was unclear how much of the upswing in demand was driven by early spring weather. Like its larger rival Home Depot Inc. (HD), Lowe’s depends to some extent on a recovery in the housing sector. Analysts expect the company to post a slight improvement in earnings.
Meanwhile, Best Buy is struggling with competition from online retailers able to offer lower-priced electronics. Earlier this week, the company’s founder and biggest shareholder, Richard Schulze, reiterated his takeover interest in the company and requested permission to conduct due diligence and form a group that could present a fully financed offer.
Other retailers reporting next week include Urban Outfitters Inc. (URBN), Barnes & Noble Inc. (BKS), American Eagle Outfitters Inc. (AEO) and Williams-Sonoma Inc. (WSM)
Trina Solar, JinkoSolar Results Due
Solar-product makers Trina Solar Ltd. (TSL, K3KD.SG) and JinkoSolar Holding Co. (JKS) will release their latest quarterly results Tuesday and Thursday, respectively.
Both companies are projected to report weaker bottom-line results as the industry continues to struggle with falling prices and a global oversupply of solar panels and manufacturing capacity. Last month, Trina Solar lowered its second-quarter forecast for shipments and gross margin, citing the global overcapacity and declining prices. The company said U.S. market uncertainty and tariff impacts resulted in stagnant demand in North America.
Housing Data, Fed Minutes Due
Housing demand tops next week’s economic data list. Existing-home sales will be reported Wednesday. Economists surveyed by Dow Jones Newswires expect resales to have risen to an annual rate of 4.5 million in July, from 4.37 million in June.
July new-home sales, due Thursday, are projected to increase to 365,000 from a 350,000 rate in June.
Meanwhile, a report on July durable-goods orders will be released Friday. The median forecast expects a 2.8% increase in new orders, but almost all of those new bookings will be in aircraft.
Wednesday, the Fed will release the minutes from its July 31-Aug. 1 policy meeting. The minutes may reveal just how worried policy makers were about the economic outlook and whether central bankers felt increased urgency to add monetary accommodation, even though no action was taken.
MarketWatch’s Laura Mandaro stopped by the Markets Hub this morning with a preview of the week ahead:
As always, here’s your handy clip-and-save calendar:
Monday
Economics:
No data
Earnings:
Lowe’s, Urban Outfitters
Tuesday
Economics:
No data
Earnings:
Dell, Best Buy, Barnes & Noble, Williams-Sonoma, Medtronic
Wednesday
Economics:
July existing home sales (10:00): seen rising 3%, after falling 5.4% in June.
Earnings:
Hewlett-Packard, Toll Brothers, Kayak Software, Express, American Eagle, Eaton Vance
Thursday
Economic:
Weekly jobless claims (8:30): seen easing 1,000 to 365,000.
August Markit Flash PMI (9:00)
July new home sales (10:00): seen rising 4.3% after falling 8.4% in June.
June FHFA home price index (10:00): seen rising 0.7%, after rising 0.8% in May.
Earnings:
Salesforce.com, Hormel, Big Lots, Autodesk, Mentor Graphics
Friday
Economic:
July durable goods orders (8:30): seen rising 2.8%, after rising 1.3% in June.
Earnings:
Madison Square Garden