Aug. 3, 2012, 4:11 p.m. EDT
Disney profits, Man United IPO on tap next week
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By Nathalie Tadena
As earnings season quiets down next week, Walt Disney Co. DIS +1.61% and Macy's Inc.M +2.36% are among the recognizable names due to report their latest results.
A handful of companies are also scheduled to go public next week. U.K. soccer club Manchester United's debut will make it the first sports teams to go public in the U.S. in a long time.
On Wednesday, Eastman Kodak Co. EKDKQ +8.82% will auction off more than 1,000 of its lucrative imaging patents, which are worth as much as $2.6 billion.
Though earnings season quiets down next week, a handful of big-name companies including media giant Walt Disney and Macy's are due to report results.
Analysts polled by Thomson Reuters project Disney to post stronger top- and bottom-line results. The company is expected to benefit significantly from its release of "The Avengers" superhero movie, which became the all-time third-highest-grossing movie domestically, a welcome change for the company following the second-quarter flop "John Carter." The company has been seeing strength in its cable channels, thanks to higher programming fees and advertising sales, as well as in its theme parks business.
Meanwhile, retailers are projected to post a mixed bag of results next week. Macy's, which has been one of the industry's strongest performers, is expected to report another quarter of improved profit. Earlier this week, Macy's reported that its second-quarter sales jumped 3% to $6.12 billion, slightly above the $6.11 billion estimate from analysts, and said its spring season met its expectations.
Analysts see weaker profit from department-store chain Kohl's Corp. KSS +1.93% and high-end retailer Nordstrom Inc. JWN +1.95% . Kohl's efforts to better compete on price have weighed on its bottom line, while Nordstrom has projected higher overhead expenses for the year amid increased spending for e-commerce. Both companies recently reported quarterly revenue figures that missed analyst expectations.
English soccer club Manchester United's shares are expected to begin trading on the New York Stock Exchange late next week. The company is aiming to sell 16.7 million shares in its initial public offering at a price between $16 to $20 each. The shares are set to price Thursday.
Manchester United, one of the most successful teams in professional soccer, would be the first sports teams to go public in the U.S. in quite some time. The last team to do so was the Cleveland Indians Baseball Co., which launched in 1998, according to data tracker Dealogic, and was later taken private.
Manchester called off plans for a $1 billion initial public offering in Singapore last year amid volatile markets.
Other companies expected to debut next week include restaurant operators Bloomin' Brands Inc. and CKE Inc. and recovery services provider Performant Financial Corp.
Eastman Kodak Co. EKDKQ +8.82% next week will put more than 1,000 of its lucrative imaging patents on the auction block, a sale the company's creditors are counting on for payment.
The imaging company is seeking to keep the auction process confidential, but The Wall Street Journal reported that Apple Inc. (AAPL), Microsoft Corp. (MSFT), Google Inc. (GOOG) and Samsung Electronics Co. (005930.SE) are among the giant technology companies that are vying for the patents.
Worth as much as $2.6 billion, the patents cover the technology used in digital cameras, smartphones and tablet computers to capture, transmit, manipulate and store images. According to Kodak, it has been able to earn more than $3 billion over the past decade by licensing the patents.
The patent auction is slated for Wednesday, but Kodak will head to the Manhattan bankruptcy court Monday to seek approval of a bonus plan for executives and managers.
Data on the June U.S. trade deficit and July import prices are among the economic reports on tap next week.
The U.S. trade gap narrowed for the second straight month in May, as exports picked up and falling oil prices helped drive down imports. Meanwhile, the cost of goods imported into the U.S. posted the largest decline in more than three years in June, also reflecting the continued fall of oil prices.
Among the significant conferences next week are Jefferies Group Inc.'s Global Industrial and Aerospace & Defense Conference Tuesday through Thursday in New York, the Credit Suisse Industrials Conference on Tuesday and Wednesday in New York, and Tudor Pickering's Hotter 'N Hell Energy Conference Wednesday and Thursday in Houston.
-Jacqueline Palank and Dow Jones Newswires staff contributed to this article.
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