By Nathalie Tadena
The fourth-quarter earnings parade continues next week, with
Walt Disney Co. (DIS) and several media companies and Web firms
among those slated to release their latest results. Additionally,
data on productivity in the latest quarter and an initial public
offering from QGOG Constellation SA are on tap for the coming
week.
Quarterly Earnings Due From Disney, Media Firms
Analysts polled by Thomson Reuters project that Disney will post
weaker per-share earnings but slightly stronger revenue when the
entertainment giant releases its fiscal first-quarter results.
Disney has completed several multibillion-dollar acquisitions in
recent years, including a $4.05 billion deal for Lucasfilm Ltd.
that closed in December, and Chief Executive Robert Iger has said
the company is transitioning into a "more compelling growth
mode."
Disney posted a 14% increase in fourth-quarter earnings, driven
largely by growth from its media networks, particularly ESPN.
Other media companies due to report next week include Gannett
Co. (GCI), Time Warner Inc. (TWX) and News Corp. (NWS, NWSA), the
owner of Dow Jones & Co. Among the companies in the social
media and web space reporting next week are Expedia Inc. (EXPE),
Zynga Inc. (ZNGA), Linkedin Corp. (LNKD) and Yelp Inc. (YELP). A
wave of web companies have gone public over the past two years,
though some well-known Web stocks, such as social-gaming firm Zynga
(ZNGA) and daily-deals site Groupon Inc. (GRPN), have plummeted
after missteps and weak quarterly results.
Economic Reports to Gauge Productivity in Weak Quarter
Next week will offer news on productivity during a quarter in
which growth basically stalled. Productivity is an important
building block for rising profits and living standards. The stall
in output growth last quarter sets productivity up for a fall, say
economists surveyed by Dow Jones Newswires.
The median forecast of economists surveyed is that output per
hour worked declined at a 1.6% annual rate last quarter, after
growing 2.9% in the third.
With productivity declining, unit labor costs are projected to
have increased 3.2%, more than reversing the 1.9% drop in the third
quarter. The Labor Department will release the report Thursday.
QGOG Constellation to Debut
QGOG Constellation SA, a Brazilian energy-services company, is
scheduled to begin trading on the New York Stock Exchange on
Friday, in a debut that could raise as much as $577.5 million.
The company, which said it intends to use proceeds from its
initial public offering to pay for two ultra-deepwater drillships
and other capital expenses, expects its 27.5 million-share IPO to
price between $19 and $21 a share.
Apple's 128GB iPad Goes on Sale Next Week
Apple Inc. (AAPL) recently unveiled a 128-gigabyte version of
its iPad with retina display, looking to attract corporate users by
doubling the storage capacity of the fourth-generation iPad
versions currently available. The new 128GB iPad will be available
Tuesday and is priced well above Apple's other iPad models. The
wi-fi model will cost $799 and the wi-fi plus cellular version is
priced at $929.
K-V Pharmaceutical Looks to Remain in Control of Restructuring
K-V Pharmaceutical Co. (KVPBQ, KVPHQ) wants to remain in control
of its restructuring, but it may face a challenge.
A Manhattan bankruptcy judge on Tuesday is slated to consider
extending the time that the drug manufacturer is shielded from the
risk of its creditors taking the company's fate into their hands, a
request it was originally slated to take up the prior week.
The threat is a real one: K-V's unsecured creditors recently
said various investors are circling and have suggested they'd pay
the unsecured creditors more than K-V is currently proposing to
do.
K-V is proposing to restructure around its flagship drug,
Makena, and exit bankruptcy under the control of its senior-secured
noteholders.
To ensure its ability to press forward with that plan, K-V is
seeking an approximately four-month extension of a ban on rival
plans, through June 17.
Conferences
Among the significant conferences next week are the Credit
Suisse Energy Summit Monday through Thursday in Vail, Colo.; the
Stifel, Nicolaus & Company Technology Conference Tuesday
through Thursday in San Francisco, Calif., and the Cowen
Aerospace/Defense Conference on Wednesday and Thursday in New
York.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
--Kathleen Madigan, Melodie Warner, Jacqueline Palank and Dow
Jones Newswires staff contributed to this report.
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