By Michael Calia
A few big names are scheduled to report results in an otherwise
light week for earnings, with Nike Inc. (NKE), Lennar Corp. (LEN),
Carnival Corp. (CCL) and Discover Financial Services (DFS) leading
the way.
On the economic front, markets will be keeping an eye on housing
data, consumer sentiment and U.S. economic growth.
Nike, Lennar, Carnival and Discover Reporting
Nike, reporting Thursday, looks for another slam dunk with
basketball-shoe sales soaring this year, with analysts polled by
Thomson Reuters expecting revenue growth of 8%. Sporting goods
retailer Finish Line Inc. (FINL), whose strong basketball results
have helped mitigate lower demand for running gear, is due to
report Friday.
Lennar is considered one of the top dogs in the homebuilder
sector, consistently reporting double-digit revenue growth in
recent periods amid a recovery in housing. Lennar, expected to post
earnings growth of 13% on 41% in revenue growth, and fellow builder
KB Home (KBH) report Tuesday.
Carnival, which split its chief executive and chairman roles
earlier in the summer, is facing its third straight year of lower
earnings as the cruise operator has been burdened by consumer
uncertainty and high-profile mishaps. The company, which reports
Tuesday, is expected to post a 15% decline in earnings with a 1%
drop in revenue.
Discover Financial Services, which has been helped recently by
fewer later credit card payments and increased loan growth, reports
Thursday.
Auto-related companies posting results
CarMax Inc. (KMX), the biggest used-car dealer in the U.S., and
AutoZone Inc. (AZO), the largest auto-parts dealer in the U.S., are
due to report results as the auto industry appears set to return to
an annual U.S. sales pace that was considered normal a decade
ago.
Other earnings to watch
Open-source software provider Red Hat Inc. (RHT), home-goods
retailer Bed Bath & Beyond Inc. (BBBY) and seasonings purveyor
McCormick & Co. (MKC) are also scheduled to report.
Expected IPOs
This week's expected initial public offerings include biotech
cancer-treatment developer Foundation Medicine Inc.,
data-management company Covisint Corp., eye-disease treatment
developer Ophthotech Corp., wind-power company Pattern Energy Group
Inc. and memory-based storage system producer Violin Memory.
Economic data to watch
The Standard & Poor's/Case-Shiller report for July,
considered a key indicator of U.S. home prices, is scheduled for
release Tuesday. The report for June showed continued growth but
indicated a slower pace could be on the way. Figures for pending
and new home sales for August are also on tap.
Markets will also get a look at the final take on the
Thomson-Reuters/University of Michigan's September consumer
sentiment data, due Friday. The early-September reading showed a
bigger drop than expected.
Also in store is the third take on gross domestic product growth
for the second quarter, which is scheduled to be released Thursday.
Earlier data showed GDP growth for the quarter was at a 2.5% annual
rate.
Write to Michael Calia at michael.calia@wsj.com
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