The coming week is a shortened one but not without a slew of news. Investors will hear a number of economic reports including consumer confidence, gross domestic product and durable goods. Also, a number of companies are slated to report quarterly results including TiVo Inc. (TIVO), Costco Wholesale Corporation (COST), and HJ Heinz Co. (HNZ).
Novell Inc. (NOVL) is slated report its fiscal second-quarter results after the bell Thursday, and analysts expect the company to post earnings of $0.06 per share, even with the same time last year, on revenue of $218 million, according to Reuters Estimates.
Investors trading into earnings should know that this stock is a strong performer between the sessions, demonstrating a consistent tendency to follow through with more aggressive, same-direction next-day movement following its evening earnings events. It’s posted more robust next day trade following 15 of the last 20 after-hours earnings events we’ve tracked. In the near-term, the stock is maintaining its follow-on trend, adding to its after-hours performance in next-day trade in three of the past four quarters.
Marvell Technology Group (MRVL) is due with its first-quarter results after the bell Thursday and is expected to report earnings of $0.04 per share, down from $0.24 a year ago, on revenue of $510.6 million.
Marvell has a tendency to see its after-hours performance narrow or reverse course in next day trade, with only a few exceptions. In the near-term, the stock’s performance is shifting, the stock has widened in three of four quarters with the most recent quarter being the exception. On March 3, the stock rallied 8.9% in after-hours trading after the company reported results that topped the Street. The stock trimmed the gain slightly the following regular session, ending up 7.2%.
Last week, investors got a peak at how well retailers are faring after companies from Wal-Mart Stores (WMT) to Wet Seal Inc. (WTSLA) reported their sales results for April. For the most part, April retail sales were better-than-expected, showing signs that their declines are slowing. Next week, earnings from Wal-Mart, Macy’s Inc (M), Kohl’s Corp. (KSS) and Nordstrom Inc. (JWN) will give investors a better idea of their outlooks for the near future.
Investors will continue to hear earnings results from a number of companies this week including Starbucks (SBUX) and Motorola (MOT), just to name a few. On Wednesday, investors will also get their first peak at how well the economy fared in the first-quarter, when advanced gross domestic product is released.
Stocks will likely continue to test their lows in the coming week after touching their lowest levels since 1997 this past week. Investors continued to get hammered with disappointing economic news including a weaker-than-expected gross domestic product and steep drop in existing home sales. Investors also digested Citigroup’s deal, in which the government and private investors will convert preferred stock into common shares.
Investors will be closely watching Capitol Hill for signs of an expected financial package. Treasury Secretary Tim Geithner is expected to disclose the administration’s plans to address still-ailing financial institutions. The creation of a “bad bank” to warehouse bad loans is widely expected. Anticipation for a financial package sent stocks soaring on Friday despite a disappointing unemployment report. This week earnings will continue as investors hear results from Beazer Homes (BZH), SOHU.com (SOHU) and UBS (UBS), just to name a few.
