Yahoo Inc. (YHOO) is preparing to lay off potentially thousands of employees starting next week as the Internet giant looks to slim down because of continued operating weakness, according to All Things Digital and other media.
Meanwhile, the initial public offerings market is expected to slow down a bit next week after natural-foods company Annie's Inc. (BNNY), mobile advertising service provider Millennial Media Inc. (MM) and a handful of others went public this week, showing improving demand in IPOs.
Bed Bath & Beyond, Monsanto To Report Quarterly Results
Bed Bath & Beyond, which consistently has beaten earnings estimates, is expected to post strong growth in its fiscal fourth quarter report Wednesday. The houseware retailer, which posted third-quarter same-store sales just above its forecast, should see continuing strength as industry sales trends have improved as the economy recovers. Gross margin should be an area of focus, as the company had been able to push margins higher in recent quarters thanks to fewer markdowns, but in the third quarter margins were flat. Its third-quarter earnings rose 21% on the same-store sales growth.
Monsanto is expected to report its fiscal second-quarter results, also on Wednesday, following surging profit in the preceding quarter. The world's largest seed maker has been seeing booming growth in South America after Brazil four years ago approved the sale of seeds with genetically modified traits, and as neighboring countries have enjoyed robust growth in the farm sector. The market in North America should be stronger than last year, Monsanto has said, as hot, dry weather hurt the 2011 seed crop. Investors will likely be looking for continued growth in corn seed sales, which jumped 46% in the first quarter on strong South America demand.
Other notable companies reporting next week include retailer Pier 1 Imports Inc. (PIR), auto-care shop Pep Boys-Manny Moe & Jack (PBY) and casual-dining chain Ruby Tuesday Inc. (RT).
Also, many major retailers, including Target Corp. (TGT), Saks Inc. (SKS), Costco Wholesale Corp. (COST) and Gap Inc. (GPS), are expected to release their March same-store sales and revenue figures on Thursday. Additionally, monthly auto sales figures will come out Tuesday.
Yahoo Layoffs Set To Begin Next Week
Yahoo may start laying off thousands of employees next week, according to multiple sources, and then announce a restructuring of the company the following week.
The swirl at the Silicon Valley Internet giant has grown more intense this week, as new CEO Scott Thompson has brought in top management for a series of meetings to outline the plans.
Although sources noted that Thompson and others said nothing was set in stone, what is emerging is a picture of a drastically slimmed-down organization with a focus on media, advertising and unknown initiatives.
Express Scripts, Medco Say Deal Could Close Next Week
Pharmacy-benefit managers Medco Health Solutions (MHS) and Express Scripts (ESRX) said Wednesday their planned merger could close as early as next week, indicating they are close to regulatory approval.
Pharmacy-benefit managers, or PBMs, handle drug benefits for corporations and health plans.
Express Scripts aims to acquire Medco in a cash-and-stock deal valued at about $29 billion, which could create the industry's biggest company.
Saying the merger could allow Express Scripts to push fees and drug prices higher, two pharmacy trade groups and several pharmacy companies filed a lawsuit in federal court Thursday aimed at stopping the deal.
Two Companies Expected To Go Public
Following a marathon week of initial public offerings, the IPO market is expected to take a breather next week, as just two biotech companies could go public.
Enerkem Inc., which develops renewable biofuels and chemicals from municipal waste, is expected Wednesday. Luca Technologies Inc., which is focused on using biotechnology to create and produce natural gas, postponed its IPO this past week, but may go public next week.
Hungary's IMF Negotiator To Visit Washington Next Week
Hungary's top negotiator with the International Monetary Fund, Tamas Fellegi, will be in the U.S. capital next week to hold informal talks with IMF officials.
Fellegi's meetings will be aimed at furthering preparations for the start of official negotiations between Hungary and the IMF and the European Union on a financial package.
Brazil To Announce More Tax Incentives, Lawmakers Say
Brazil's government will announce additional measures to ease the tax burden of local industries, as early as Tuesday, local congressmen said.
The lawmakers gave the information following a meeting with Finance Minister Guido Mantega.
"The minister said that he should announce measures next week to ease payroll taxes and increase investment by industry," said Hugo Leal, leader of the government-allied Social-Christian Party in Brazil's lower house.
Brazil's government late last week announced a series of measures extending tax reductions to Brazilian-based manufacturers of home appliances as part of an effort to spur greater economic growth this year.
Separately, Brazil's main financial exchange operator, BM&FBovespa S.A. (BVMF3.BR), will appeal a large misconduct fine and has high expectations for a reversal, Chief Executive Edemir Pinto said.
The BM&FBovespa operates Brazil's stocks, futures and commodities exchanges.
A local court this week ordered the exchange to pay up to BRL8.42 billion ($4.6 billion) in connection with alleged administrative misconduct related to foreign-exchange contracts carried out in 1999, a time when Brazil was faced with a currency crisis.
Conferences
Among the significant conferences next week are Global Hunter Securities Midwest Land Drillers Conference from Monday to Friday in Chicago; Needham & Co LLC Life Sciences Conference from Tuesday to Wednesday in New York City; Wells Fargo Tech Transformation Summit on Tuesday and Wednesday in San Francisco; and Bank of America Merrill Lynch New York Auto Summit from Wednesday to Thursday in New York City.
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