Coca-Cola, Groupon Earnings to Top Coming Week


NEW YORK (TheStreet) -- As Americans go back to work after Super Bowl Sunday, investors will hope for a final resolution to the long-delayed Greek debt negotiations before looking to digest a slew of U.S. corporate earnings.

After Greece failed again last week to come to an agreement with private investors on a debt writedown, investors are hoping they will see a resolution after a planned meeting between Greek Prime Minister Lucas Papademos and the head of the three parties of the coalition government over the weekend.

Greek government spokesman Pantelis Kapsis said the private sector bond swap deal was almost complete. "Within the day, we will have to finalize a series of alternative proposals which will be put before the political leaders so we can take the final decisions," he said.

The deal is a necessary step in receiving a second bailout from European Union and International Monetary Fund coffers before 14.4 billion euros in bonds mature on March 20.

On the other side of the Atlantic, U.S. corporate earnings will take the spotlight as few economic releases are scheduled for the week and nothing is on the docket until Thursday.

Investors will get a look at the books of three U.S. blue-chips from the Dow Jones Industrial Average as Coca-Cola ( KO) and Walt Disney ( DIS) report Tuesday, and Cisco ( CSCO) follows up on Wednesday.

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A slew of big Web-based companies will also report for a look into how online companies are faring as Facebook prepares its initial public offering. Big online names during the week include Open Table ( OPEN) Tuesday, Groupon ( GRPN) on Wednesday and Expedia ( EXPE) and LinkedIn ( LNKD) on Thursday.

Last week, U.S. markets extended gains after completing the best January in 15 years as a falling unemployment rate reaffirmed statements from Federal Reserve Chairman Ben Bernanke assuring legislators that the economy is improving. The Nasdaq advanced 3% for its best week since the week ending Dec. 2.

Nearly two-thirds of all S&P 500 companies saw growth in the fourth quarter, with 264 of 500 companies having reported earning, while 67% of companies beat estimates. With 68 companies announcing results in the coming week, investors are hoping to improve upon those trends.

Big names to announce earnings on Monday include Coinstar ( CSTR), whose RedBox DVD-rental kiosks looked to benefit from dwindling Netflix ( NFLX) subscriptions at the end of 2011.

Analysts expect Coinstar to report earnings of 64 cents a share on revenue of $498 million. Meanwhile, the second-largest Medicare provider, Humana ( HUM), is expected to see a profit of $1.20 a share on revenue of $9.24 billion, according to analysts polled by Thomson Reuters.

As Yum! Brands ( YUM) continues its expansion into Asia, the operator of the KFC and Pizza Hut chains is expected to see earnings climb to 74 cents a share from 59 cents the previous year as revenue jumps 13% to $4.03 billion.

Tuesday Coca-Cola and Disney will dominate headlines as they announced quarterly results. Analysts polled by Thomson Reuters expect Coca-Cola to earning 77 cents a share on revenue of $10.99 billion, while they see profits of 68 cents a share on sales of $11.05 billion for Disney. Meanwhile, Open Table is expected to earn 30 cents a share on revenue of $36.81 million.

Wednesday will be another big day for earnings, with Cisco expected to kick things off with earnings of 48 cents a share on $11.91 billion in revenue. Groupon, on the other hand, will report earnings for the first time since the company went public in November.

Other big movers reporting will include media giants Time Warner Cable ( TWX) and News Corp. ( NWSA), wireless operator Sprint ( S) and CVS Caremark ( CVS), the largest U.S. prescription drug provider.

Time Warner, the second- largest U.S. cable-television provider, is expected to see earnings increase to 87 cents a share, while analysts polled by Thomson Reuters expect News Corp. to report that earnings rose to 39 cents a share. Meanwhile, analysts are expecting far worse results from Sprint, which is expected to see a loss of 37 cents a share.

Pharmacy giant CVS is expected to see revenue climb 14% to $28.12 billion with earnings of 89 cents a share as rival Walgreen ( WAG) stands to suffer from the loss of Express Scripts ( ESRX) from its pharmacy network.

Investors will see the first major U.S. economic data release Thursday, while the European Central Bank's Governing Council meets.

Economists expect the Labor Department to report the number of Americans filing initial jobless claims to rise to 370,000 from 367,000 last week, according to Thomson Reuters. The report will be the first on jobs since the Bureau of Labor Statistics reported last Friday that the unemployment rate unexpectedly dropped to 8.3%, the lowest level in almost three years.

However, market players will listen carefully when ECB president Mario Draghi speaks at a press conference after the meeting for any commentary on the Greek debt situation for a hint into how the bank might get involved to prevent, or in the worst case scenario, organize, a bailout.

Outside the government data and statements, Thursday will be another busy day for corporate earnings. LinkedIn and Dunkin' Brands ( DNKN) will report earnings for the October through December period for the first time since their initial public offerings in May and July, respectively.

Analysts polled by Thomson Reuters expect online travel agency Expedia to report earnings of 54 cents a share on revenue of $815 million in the fourth quarter, while they see earnings of just 1 cent a share on revenue of $785.49 for Sirius XM Radio ( SIRI), the country's largest satellite-radio broadcaster.

Things will settle down for before the weekend Friday as the U.S. sees a couple economic data releases and a slowing of corporate earnings announcements.

Before the bell, the Department of Commerce is expected to report that U.S. international trade deficit increased to $48.5 billion in December from $47.8 billion the prior month.

Later in the morning the University of Michigan confidence survey is expected to stay flat at 74.0, its highest level in eight months, after jumping to that mark from 69.9 in December.

Of note on the Friday earnings calendar will be NYSE Euronext ( NYX), whose $9.5 billion proposed merger with Deutsche Boerse was rejected by the European Union last week.

-- Written by Kaitlyn Kiernan in New York.

>To contact the writer of this article, click here: Kaitlyn Kiernan

To follow the writer on Twitter, go to @Kaitlyn_Kiernan.

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