Outlook  Shutterstock A barrage of earnings reports will arrive next week. The Q1 earnings season so far has seen a record 87% of S&P 500 companies top estimates and earnings growth on average of 46%. Economic reports to watch include updates on ISM manufacturing, construction spending, factory spending and a the March jobs report at the end of the week. The World Vaccine Congress runs from May 4-6, while on the corporate calendar there are key events for Merck, (NYSE:MRK), Dell Technologies (NYSE:DELL), CarMax (NYSE:KMX) and Union Pacific (NYSE:UNP).
| | Welcome to Wall Street Breakfast, our preview of stock market events for investors to watch during the upcoming week. You can also catch this article a day early by subscribing to the Stocks to Watch account for Saturday morning delivery. |
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| Outlook Shutterstock A barrage of earnings reports will arrive next week. The Q1 earnings season so far has seen a record 87% of S&P 500 companies top estimates and earnings growth on average of 46%. Economic reports to watch include updates on ISM manufacturing, construction spending, factory spending and a the March jobs report at the end of the week. The World Vaccine Congress runs from May 4-6, while on the corporate calendar there are key events for Merck, (NYSE:MRK), Dell Technologies (NYSE:DELL), CarMax (NYSE:KMX) and Union Pacific (NYSE:UNP).
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| Earnings Earnings reports are set for DISH Network (NASDAQ:DISH) and XPO Logistics (NYSE:XPO) on May 3; CVS Health (NYSE:CVS), Pfizer (NYSE:PFE), Sysco (NYSE:SYY), DuPont (NYSE:DD), T-Mobile US (NASDAQ:TMUS), Caesars Entertainment (NASDAQ:CZR), Zillow (NASDAQ:ZG), Under Armour (NYSE:UAA) and Activision Blizzard (NASDAQ:ATVI) on May 4; General Motors (NYSE:GM), MetLife (NYSE:MET), Zynga (NASDAQ:ZNGA), Allstate (NYSE:ALL), Uber (NYSE:UBER) and Rocket Companies (NYSE:RKT) on May 5; Cardinal Health (NYSE:CAH), Anheuser-Busch InBev (NYSE:BUD), ViacomCBS (NASDAQ:VIAC), McKesson (NYSE:MCK) and Square (NYSE:SQ) on May 6; CIGNA (NYSE:CI) and Enbridge (NYSE:ENB) on May 7.
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| IPOs IPOs expected to start trading next week include Honest Company (HNST) and Five Star Bancorp (FSBC). Analyst quiet periods expire on UTime (NASDAQ:UTME) on May 3, as well as VectivBio (NASDAQ:VECT) and Reneo Pharma (NASDAQ:RPHM) on May 4. The IPO lockup period expires on Gatos Silver (NYSE:GATO) on May 3.
The Honest Company (HNST) is looking to raise as much as $439M in an IPO next week that could give co-founder Jessica Alba a stake valued at about $96M. Honest Company sells baby products, cleaning supplies and cosmetics. The company plans to sell 6.5M shares and existing shareholders will sell 19.4M shares in an expected range of $14 to $17. At the top end of the range, Honest would have a market value of $1.54M. Selling shareholders include private equity firm L Catterton, Institutional Venture Partners, Lightspeed Venture Partners and General Catalyst. Jessica Alba doesn't plan to sell any of her shares. them in the offering, according to the filing. The Los Angeles-based company had a net loss of $14.5M on revenue of $301M in 2020, compared with a loss of $31M on revenue of $236M the previous year. HNST expects 2019-2025 compound annual growth rates in the clean-and-natural part of those businesses to hit 16% for diapers/wipes, 10% for skin/personal care and 4% for household/wellness. | |
| Dividends Projected dividend increases (quarterly): Expected dividend hikes for next week include Vishay Intertech (NYSE:VSH) to $0.105 from $0.095, Sturm Ruger (NYSE:RGR) to $0.78 from $0.71, CNO Financial (NYSE:CNO) to $0.13 from $0.12, MSA Safety (NYSE:MSA) to $0.46 from $0.43, Chesapeake Utilities (NYSE:CPK) to $0.47 from $0.44, HP Enterprise (NYSE:HPE) to $0.1275 from $0.1200, Expeditors (NASDAQ:EXPD) to $0.55 from $0.52, Cabot Corp (NYSE:CBT) to $0.37 from $0.35, Pool Corp (NASDAQ:POOL) to $0.61 from $0.58 and PepsiCo (NASDAQ:PEP) to $1.075 from $1.0225. | |
| M&A The go-shop period on the $1.1B buyout by ORBCOMM (NASDAQ:ORBC) by GI Partners. ORBCOMM stockholders will receive $11.50 in cash per outstanding share, representing a premium of ~52% to the closing share price on April 7 and a 50% premium over the 90-day volume-weighted average share price through that date. | |
| Events Merck (MRK) introduces women's health company Organon ahead of the planned spinoff to shareholders. Organon is said to be strategically positioned to be a leader in a $61B market for medicines and health solutions for women. Analysts think that the Organon spinoff leaves Merck as a leaner and higher growth company, although the heavy reliance on KEYTRUDA is said to require MRK to revisit its strategic priorities. Look for some early revenue projections on Organon following the event. Other notable events include investor days for Myriad Genetics (NASDAQ:MYGN), Union Pacific (UNP) and CarMax (KMX). Looking to the stars, ARK Invest holds a webinar to discuss why the space industry is primed for takeoff and delve into the new ARK Space Exploration & Innovation ETF (BATS:ARKX).
Vaxart's (NASDAQ:VXRT) will present at the World Vaccine Congress Washington that will be held virtually from May 4-6. Shares of Vaxart have soared 60% in the last few sessions in anticipation of the talk and strong interest on stock from the WallStreetBets crowd. Execs from Moderna (NASDAQ:MRNA), Novavax (NASDAQ:NVAX) and BioNTech (NASDAQ:BNTX).
The record date for the Canadian Pacific (NYSE:CP) five-for-one stock split is on May 5. "We believe that the share split will encourage greater liquidity for CP's common shares and provide opportunities for ownership by a wider group of investors than is currently available," says Keith Creel about the split. CP is in the middle of a rails battle with Canadian National Railway (NYSE:CNI) for Kansas City Southern (NYSE:KSU).
A new version of Beyond Meat's (NASDAQ:BYND) signature plant-based burger will be available at retail outlets next week. The new version removes mung beans from the ingredient list and adds some vitamins and minerals to make the product taste meatier. It also has fewer calories (230 instead of 260) and less fat (14 grams versus 18 grams) per patty. The newest recipe is expected to eventually replace the current product. Restaurants that serve the Beyond Meat burger will start getting the new version in June.
Conferences rundown: Notable conferences running during the week include the Oppenheimer 16th Annual Industrial Growth Conference and 2021 Virtual Wells Fargo Industrials Conference.
Go Deeper: Check out Seeking Alpha's Catalyst Watch for a detailed list of events to watch | |
| Barron's mentions The upside for investors from investing in legalized marijuana is broken down in this week's cover story. "Over time, recreational sales will probably come to the 20 states that now allow sale by prescription. That could spur the remaining state holdouts to fall in line, if federal legalization doesn't happen first. So, sales can't help but grow," predicts Barron's. Some of the lesser-known companies looking to grow U.S. sales include Columbia Care (OTCQX:CCHWF), Harvest Health & Recreation (OTCQX:HRVSF), Ayr Wellness (OTCQX:AYRWF), and TerrAscend (OTCQX:TRSSF). Also profiled favorably this week is Altra Industrial Motion (NASDAQ:AIMC). The company is said to be benefiting from a stronger economy and the shift to automation, which should help to lift its earnings and shares. A case is also laid out as to why auto insurer Progressive (NYSE:PGR) is a growth-stock in a slow-growth industry.
Sources: EDGAR, Bloomberg, CNBC, Reuters, Renaissance Capital
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