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Stocks attempted a rebound this morning after yesterday’s explosive session, while some big earnings announcements got off to good starts.
Pfizer (PFE) bettered earnings estimates but lowered its revenue guidance, while Coca-Cola (KO) beat earnings expectations and reaffirmed its guidance. Both were featured on yesterday’s Market Action.
KO delivered a solid third quarter, with its sixth consecutive profit beat. Revenue came in better than expected. Case volume also rose more than forecast, which may be the most important number because it suggests the underlying business is stabilizing. (That’s key because KO had lost customers to non-carbonated drinks for years.)
The company’s third-quarter 2018 comparable earnings were 58 cents per share. The bottom line improved 14 percent from the year-ago period, driven by ongoing productivity efforts and disciplined growth strategies. Currency translation negatively impacted earnings by 8 percent.
Coca-Cola (KO) chart, with 50-day moving average.
These results grew from the company’s new strategies to evolve as a consumer-centric total-beverage company. KO jumped almost 2 percent and are challenging its highest level since early February.
PFE had adjusted earnings per share of 78 cents, above most estimates. That was a 16 percent gain year over year. The drug giant’s revenue climbed just 1 percent to of $13.3 billion to match consensus. Excluding the impact of the strong U.S. dollar, revenue would have risen 2 percent.
Another company on the Market Action list, Under Armour (UAA) reported earnings of $0.25 per share — double the Street’s $0.12 estimate. Sales of $1.44 billion beat expectations by 2.5 percent in the quarter. The athletic-apparel company’s shares ripped more than 20 percent as a result.
This afternoon will bring Facebook’s (FB) earnings. Any weakness from this name might bring on a downside test. It could be time to buckle up tight again.
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