Earnings live: SoundHound AI stock soars, The Trade Desk tanks as Q2 earnings season starts winding down

Yahoo

2 days ago

Second quarter earnings season is winding down, and with most of the reports in, the results have been mostly positive.
Companies had a lower bar to clear coming into the quarter, as analysts tempered their expectations amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy.
This week, investors heard from Tyson (TSN), AMD (AMD), Snap (SNAP), McDonald's (MCD), Disney (DIS), Uber (UBER), Lyft (LYFT), Palantir (PLTR), and more when they report results.
In the week ahead, AMC (AMC), Cava (CAVA), Cisco (CSCO), CoreWeave (CRWV), Deere (DE), On (ONON), and Oklo (OKLO), among others, will have their say.
Data from FactSet published Friday showed that with 90% of the index having reported results, analysts expect S&P 500 companies to report an 11.8% jump in earnings per share during the second quarter.
Heading into the quarter, analysts expected S&P 500 earnings to rise 5% in Q2, which would mark the slowest pace of earnings growth since the fourth quarter of 2023.
Here are the latest updates from corporate America.
Wendy's gloomy 2025 outlook sends shares lower
Wendy's beat Wall Street's estimates on the top and bottom lines on Friday; however, the company issued a weaker full-year financial outlook, sending shares about 1% lower in premarket trading.
This year, the company sees adjusted earnings per share in a range of $0.82 to $0.89, lower than its previous forecast of $0.92 to $0.98.
Global systemwide sales are also now projected to come in lower than previously expected for a decline of 3% to 5%, compared to the previous outlook of flat sales to a 2% decline.
In the second quarter, sales decreased 1.8% to $3.7 billion, led by a 3.3% decline in the US market.
The fast food chain reported revenue of $560.9 million, topping estimates of $558 million. Earnings per share were $0.29, also a beat against estimates of $0.25 per share.
On Wednesday, McDonald's (MCD) reported a return to sales growth after economic uncertainty and inflation weighed on consumers and eroded the restaurant chain's value perception.
Listen to the earnings call live here.
Trade Desk tumbles after CEO warns of tariff impact on large brand advertisers
Trade Desk (TTD) stock fell by a third during premarket trading on Friday — putting it on track to wipe roughly $12 billion from its market cap — after CEO Jeff Green warned that tariff uncertainty began to weigh on some leading global advertisers.
Reuters reports:
The Trade Desk's second quarter earnings of $0.18 per share were in line with analyst estimates. Revenue of $694 million beat analyst estimates of $686 million, according to S&P Global Market Intelligence. The company expects third quarter revenue of at least $717 million, roughly in line with estimates.
Read more here.
SoundHound stock soars on record revenue fueled by AI, automation demand
SoundHound AI (SOUN) reported record revenue in its second quarter results, as its expansion into new verticals, such as restaurants and hospitals, helped fuel 217% year-over-year revenue growth.
The stock rocketed 24% higher in premarket trading on Friday.
SoundHound develops artificial intelligence solutions that businesses use for automation and to create conversational experiences for their customers. In Q2, SoundHound reported strong growth in its automation, automotive, and enterprise AI for customer service verticals.
The company posted a GAAP loss of $0.19 per share on $42.7 million in revenue. Last year, SoundHound reported a loss of $0.11 per share and revenue of $13 million.
SoundHound also raised its 2025 revenue outlook to $160 million to $178 million, up from its previous forecast of $157 million to $177 million.
"The investments we are making are already showing high returns," SoundHound CFO Nitesh Sharan said on the company's earnings call. Sharan noted that the company sees a path to profitability "in the near-term horizon.
Listen to the earnings call here.
Under Armour forecasts downbeat quarterly sales, shares drop
Under Armour (UA) stock slumped by 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates.
The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty.
Reuters reports:
Read more here.
Expedia raises gross bookings, revenue growth forecast amid US travel demand recovery
Expedia Group (EXPE) stock leaped 15% higher in after-hours trading as Wall Street looked favorably on signs of a travel demand recovery, a raised gross bookings forecast, and double-digit profit growth.
Reuters reports:
Read more here.
Live Nation results show fans still spending on concerts, live events
Live Nation Entertainment (LYV) stock rose modestly after hours following second quarter results from the discretionary spending economic bellwether. The release showed that fans are still willing to spend on concerts and live events.
Reuters reports:
Read more here.
Gamblers' losses boost sportsbooks' fortunes in Q2
FanDuel-owner Flutter (FLUT) raised its forecast for full-year profit growth on Thursday after a winning streak for US gamblers ended, benefiting the world's largest online betting company.
A better-than-expected second quarter yielded core profits of $400 million, a 54% rise. Revenue came in at $4.19 billion, above estimates and up from $3.61 billion a year ago.
Flutter increased its annual profit forecast to $3.3 billion from $3.18 billion, projecting 40% year-over-year growth.
The company is looking into the regulatory landscape for prediction markets and considering an entry into that market, which allows users to bet on the outcomes of future events.
Earlier on Thursday, DraftKings (DKNG) also attributed healthy revenue growth to favorable outcomes.
Revenue increased 36% to $1.5 billion, while profits were $0.30 per share, double what Wall Street was expecting at $0.15 per share.
Flutter stock rose fractionally after hours. DraftKings shares were also muted, falling 0.35% on the day and another 0.2% after hours.
Read more here.
Gilead posts flat quarterly profit, raises full-year outlook
Reuters reports:
Read more here.
Pinterest beats revenue estimates but misses on earnings
Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations.
Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35.
Global monthly active users on the site increased 11% annually to reach 578 million.
The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%.
'I'm proud of our Q2 results — delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.'
Read more here.
Block stock surges on strong profit growth, raised guidance
Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon.
Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion.
Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories.
For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth.
Read more here.
Texas Roadhouse issues cautious inflation guidance, stock falls
Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading.
The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%.
"Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands."
For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year.
Investors are 'agitated by anything short of perfect' this earnings season
Yahoo Finance's Josh Schafer writes:
Read more here.
Sunrun stock soars 30% on strong results despite policy challenges
Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks.
In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence.
The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry.
"Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026."
The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer.
Tariffs loom over Crocs's third quarter financial outlook
Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business.
The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results.
"We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books."
On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%.
The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs.
Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share.
Peloton stock soars on swing to profit
Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year.
Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading.
The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter.
Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA.
Duolingo surges as AI-led growth, forecast raise boost investor confidence
The stock is on a tear, up over 25% in premarket trading.
Reuters reports:
Read more here.
Warner Bros. Discovery posts surprise profit
Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit.
The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results.
The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21.
Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines."
Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers.
The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets.
Read more here.
Eli Lilly second quarter earnings beat estimates, but stock dives on GLP-1 pill trial results
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
One call out on Airbnb
Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins.
If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid.
SoftBank swings to profit on vision fund gains ahead of AI push
Bloomberg News reports:
Read more here.
Wendy's gloomy 2025 outlook sends shares lower
Wendy's beat Wall Street's estimates on the top and bottom lines on Friday; however, the company issued a weaker full-year financial outlook, sending shares about 1% lower in premarket trading.
This year, the company sees adjusted earnings per share in a range of $0.82 to $0.89, lower than its previous forecast of $0.92 to $0.98.
Global systemwide sales are also now projected to come in lower than previously expected for a decline of 3% to 5%, compared to the previous outlook of flat sales to a 2% decline.
In the second quarter, sales decreased 1.8% to $3.7 billion, led by a 3.3% decline in the US market.
The fast food chain reported revenue of $560.9 million, topping estimates of $558 million. Earnings per share were $0.29, also a beat against estimates of $0.25 per share.
On Wednesday, McDonald's (MCD) reported a return to sales growth after economic uncertainty and inflation weighed on consumers and eroded the restaurant chain's value perception.
Listen to the earnings call live here.
Wendy's beat Wall Street's estimates on the top and bottom lines on Friday; however, the company issued a weaker full-year financial outlook, sending shares about 1% lower in premarket trading.
This year, the company sees adjusted earnings per share in a range of $0.82 to $0.89, lower than its previous forecast of $0.92 to $0.98.
Global systemwide sales are also now projected to come in lower than previously expected for a decline of 3% to 5%, compared to the previous outlook of flat sales to a 2% decline.
In the second quarter, sales decreased 1.8% to $3.7 billion, led by a 3.3% decline in the US market.
The fast food chain reported revenue of $560.9 million, topping estimates of $558 million. Earnings per share were $0.29, also a beat against estimates of $0.25 per share.
On Wednesday, McDonald's (MCD) reported a return to sales growth after economic uncertainty and inflation weighed on consumers and eroded the restaurant chain's value perception.
Listen to the earnings call live here.
Trade Desk tumbles after CEO warns of tariff impact on large brand advertisers
Trade Desk (TTD) stock fell by a third during premarket trading on Friday — putting it on track to wipe roughly $12 billion from its market cap — after CEO Jeff Green warned that tariff uncertainty began to weigh on some leading global advertisers.
Reuters reports:
The Trade Desk's second quarter earnings of $0.18 per share were in line with analyst estimates. Revenue of $694 million beat analyst estimates of $686 million, according to S&P Global Market Intelligence. The company expects third quarter revenue of at least $717 million, roughly in line with estimates.
Read more here.
Trade Desk (TTD) stock fell by a third during premarket trading on Friday — putting it on track to wipe roughly $12 billion from its market cap — after CEO Jeff Green warned that tariff uncertainty began to weigh on some leading global advertisers.
Reuters reports:
The Trade Desk's second quarter earnings of $0.18 per share were in line with analyst estimates. Revenue of $694 million beat analyst estimates of $686 million, according to S&P Global Market Intelligence. The company expects third quarter revenue of at least $717 million, roughly in line with estimates.
Read more here.
SoundHound stock soars on record revenue fueled by AI, automation demand
SoundHound AI (SOUN) reported record revenue in its second quarter results, as its expansion into new verticals, such as restaurants and hospitals, helped fuel 217% year-over-year revenue growth.
The stock rocketed 24% higher in premarket trading on Friday.
SoundHound develops artificial intelligence solutions that businesses use for automation and to create conversational experiences for their customers. In Q2, SoundHound reported strong growth in its automation, automotive, and enterprise AI for customer service verticals.
The company posted a GAAP loss of $0.19 per share on $42.7 million in revenue. Last year, SoundHound reported a loss of $0.11 per share and revenue of $13 million.
SoundHound also raised its 2025 revenue outlook to $160 million to $178 million, up from its previous forecast of $157 million to $177 million.
"The investments we are making are already showing high returns," SoundHound CFO Nitesh Sharan said on the company's earnings call. Sharan noted that the company sees a path to profitability "in the near-term horizon.
Listen to the earnings call here.
SoundHound AI (SOUN) reported record revenue in its second quarter results, as its expansion into new verticals, such as restaurants and hospitals, helped fuel 217% year-over-year revenue growth.
The stock rocketed 24% higher in premarket trading on Friday.
SoundHound develops artificial intelligence solutions that businesses use for automation and to create conversational experiences for their customers. In Q2, SoundHound reported strong growth in its automation, automotive, and enterprise AI for customer service verticals.
The company posted a GAAP loss of $0.19 per share on $42.7 million in revenue. Last year, SoundHound reported a loss of $0.11 per share and revenue of $13 million.
SoundHound also raised its 2025 revenue outlook to $160 million to $178 million, up from its previous forecast of $157 million to $177 million.
"The investments we are making are already showing high returns," SoundHound CFO Nitesh Sharan said on the company's earnings call. Sharan noted that the company sees a path to profitability "in the near-term horizon.
Listen to the earnings call here.
Under Armour forecasts downbeat quarterly sales, shares drop
Under Armour (UA) stock slumped by 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates.
The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty.
Reuters reports:
Read more here.
Under Armour (UA) stock slumped by 12% before the bell on Friday after the sportswear maker forecast second-quarter revenue below Wall Street estimates.
The company is grappling with muted demand in North America due to still-high inflation and tariff uncertainty.
Reuters reports:
Read more here.
Expedia raises gross bookings, revenue growth forecast amid US travel demand recovery
Expedia Group (EXPE) stock leaped 15% higher in after-hours trading as Wall Street looked favorably on signs of a travel demand recovery, a raised gross bookings forecast, and double-digit profit growth.
Reuters reports:
Read more here.
Expedia Group (EXPE) stock leaped 15% higher in after-hours trading as Wall Street looked favorably on signs of a travel demand recovery, a raised gross bookings forecast, and double-digit profit growth.
Reuters reports:
Read more here.
Live Nation results show fans still spending on concerts, live events
Live Nation Entertainment (LYV) stock rose modestly after hours following second quarter results from the discretionary spending economic bellwether. The release showed that fans are still willing to spend on concerts and live events.
Reuters reports:
Read more here.
Live Nation Entertainment (LYV) stock rose modestly after hours following second quarter results from the discretionary spending economic bellwether. The release showed that fans are still willing to spend on concerts and live events.
Reuters reports:
Read more here.
Gamblers' losses boost sportsbooks' fortunes in Q2
FanDuel-owner Flutter (FLUT) raised its forecast for full-year profit growth on Thursday after a winning streak for US gamblers ended, benefiting the world's largest online betting company.
A better-than-expected second quarter yielded core profits of $400 million, a 54% rise. Revenue came in at $4.19 billion, above estimates and up from $3.61 billion a year ago.
Flutter increased its annual profit forecast to $3.3 billion from $3.18 billion, projecting 40% year-over-year growth.
The company is looking into the regulatory landscape for prediction markets and considering an entry into that market, which allows users to bet on the outcomes of future events.
Earlier on Thursday, DraftKings (DKNG) also attributed healthy revenue growth to favorable outcomes.
Revenue increased 36% to $1.5 billion, while profits were $0.30 per share, double what Wall Street was expecting at $0.15 per share.
Flutter stock rose fractionally after hours. DraftKings shares were also muted, falling 0.35% on the day and another 0.2% after hours.
Read more here.
FanDuel-owner Flutter (FLUT) raised its forecast for full-year profit growth on Thursday after a winning streak for US gamblers ended, benefiting the world's largest online betting company.
A better-than-expected second quarter yielded core profits of $400 million, a 54% rise. Revenue came in at $4.19 billion, above estimates and up from $3.61 billion a year ago.
Flutter increased its annual profit forecast to $3.3 billion from $3.18 billion, projecting 40% year-over-year growth.
The company is looking into the regulatory landscape for prediction markets and considering an entry into that market, which allows users to bet on the outcomes of future events.
Earlier on Thursday, DraftKings (DKNG) also attributed healthy revenue growth to favorable outcomes.
Revenue increased 36% to $1.5 billion, while profits were $0.30 per share, double what Wall Street was expecting at $0.15 per share.
Flutter stock rose fractionally after hours. DraftKings shares were also muted, falling 0.35% on the day and another 0.2% after hours.
Read more here.
Gilead posts flat quarterly profit, raises full-year outlook
Reuters reports:
Read more here.
Reuters reports:
Read more here.
Pinterest beats revenue estimates but misses on earnings
Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations.
Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35.
Global monthly active users on the site increased 11% annually to reach 578 million.
The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%.
'I'm proud of our Q2 results — delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.'
Read more here.
Shares of Pinterest (PINS) dropped over 10% after hours after missing earnings expectations.
Revenue grew 17% year over year to $998 million, and earnings per share were $0.33. Wall Street was looking for revenue of $975 million and earnings per share of $0.35.
Global monthly active users on the site increased 11% annually to reach 578 million.
The results follow earnings from Meta (META), Amazon (AMZN), and Snap (SNAP). On one hand, Snap recorded its slowest quarter of revenue growth in a year. On the other, Amazon's online ad sales jumped 23% year over year, and Meta's advertising revenue rose 22%.
'I'm proud of our Q2 results — delivering 17% revenue growth and another quarter of record users. We're also excited that Gen Z has grown to over half of our user base,' said Bill Ready, CEO of Pinterest. 'Three years into our business transformation, I've never been more confident in Pinterest's ability to deliver for our users and advertisers. We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers. With this focus, we believe we're well-positioned to further capture market share.'
Read more here.
Block stock surges on strong profit growth, raised guidance
Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon.
Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion.
Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories.
For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth.
Read more here.
Block (XYZ) stock surged after hours as the Jack Dorsey-led fintech company reported 14% gross profit growth and raised its annual profit forecast. Shares were up 10% on Thursday afternoon.
Gross profits for the Square payment processing segment grew 11% year over year to $1.03 billion, while CashApp's gross profit grew 16% to $1.5 billion.
Block noted strength in consumer spending. In the second quarter, Square's gross payment volume, or the total monetary value of transactions, grew 10% annually (7% in the US and 25% internationally). The company said it observed notable strength in the food, beverage, and retail categories.
For the full year, Block sees $10.17 billion in gross profit and full-year adjusted operating income of $2.03 billion, representing 2% margin expansion growth.
Read more here.
Texas Roadhouse issues cautious inflation guidance, stock falls
Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading.
The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%.
"Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands."
For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year.
Texas Roadhouse (TXRH) said it expects greater commodity inflation in the second half of the year to weigh on profitability, which sent shares 3% lower in after-hours trading.
The company reiterated its outlook for positive same-store sales but noted that it expects commodity inflation of 5%, including the estimated impact of tariffs, and labor inflation of approximately 4%.
"Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands," Texas Roadhouse CEO Jerry Morgan said in an earnings release. "While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands."
For the second quarter, Texas Roadhouse earned net income of $125 million, or $1.86 per share, missing Wall Street estimates of $1.91 per share. Revenue of $1.51 billion rose 12.7% year over year.
Investors are 'agitated by anything short of perfect' this earnings season
Yahoo Finance's Josh Schafer writes:
Read more here.
Yahoo Finance's Josh Schafer writes:
Read more here.
Sunrun stock soars 30% on strong results despite policy challenges
Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks.
In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence.
The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry.
"Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026."
The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer.
Sunrun (RUN) stock rallied more than 30% on Thursday after the solar company reported a surprise profit on Wednesday, lifting shares of other solar stocks.
In the second quarter, Sunrun reported profits of $1.07 per share, compared to an expected loss of $0.12 per share. Sunrun recorded $569 million in revenue, also beating Wall Street estimates for $560 million, per S&P Global Market Intelligence.
The report offered a bright spot in what's been a turbulent quarter for renewables, as President Trump's signature budget law accelerated the phase-out of some solar and wind tax credits despite strong lobbying by the industry.
"Sunrun is well-positioned to continue to generate strong financial returns under the enacted legislation," Sunrun CEO Mary Grace Powell assured investors on the earnings call. "While the sunset of the 25D homeowner tax credit could lead to large declines for a segment of the market in certain geographies, Sunrun is positioned to continue to grow margins and volumes into 2026."
The Trump administration has also cracked down on permitting for wind and solar projects while propping up nuclear and fossil fuels. And tariffs prove to be another headwind. Powell said tariff costs were "at the low end" of its previously forecast range of $1,000 to $1,300 per customer.
Tariffs loom over Crocs's third quarter financial outlook
Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business.
The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results.
"We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books."
On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%.
The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs.
Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share.
Crocs (CROX) forecast a 9% to 11% decline in third quarter revenue on Thursday, as tariffs and a softer consumer spending environment weigh on the business.
The stock lost a quarter of its value, falling 25% to $79 per share in early trading after reporting second quarter results.
"We expect the Crocs brand to be down mid-single digits, led by declines in North America, offset in part by growth in international," Crocs CFO Susan Healy said in the company's earnings call. "This includes our expectation that the second half wholesale environment will be challenging for both brands based on the visibility we have in our current order books."
On the cost side, Crocs expects incremental tariffs to create a $40 million headwind in the second half of the year for a total impact of $90 million for the year. The shoe company imports most of its products from China, Vietnam, Indonesia, India, and Cambodia, which face tariffs in a range of 10% to 20%.
The company sees a 170-basis-point impact on adjusted operating margins in the third quarter, largely from tariffs.
Revenue for the June quarter slightly beat estimates at $1.41 billion. Adjusted diluted earnings per share of $4.23 also beat expectations of $4.02 per share.
Peloton stock soars on swing to profit
Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year.
Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading.
The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter.
Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA.
Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year.
Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading.
The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. "This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business," CEO Peter Stern said in a shareholder letter.
Peloton's outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA.
Duolingo surges as AI-led growth, forecast raise boost investor confidence
The stock is on a tear, up over 25% in premarket trading.
Reuters reports:
Read more here.
The stock is on a tear, up over 25% in premarket trading.
Reuters reports:
Read more here.
Warner Bros. Discovery posts surprise profit
Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit.
The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results.
The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21.
Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines."
Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers.
The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets.
Read more here.
Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit.
The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like "The Pitt" helped boost results.
The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21.
Higher box office sales boosted theatrical revenue by 38%, driven by box office hits "A Minecraft Movie," "Sinners," and "Final Destination: Bloodlines."
Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers.
The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets.
Read more here.
Eli Lilly second quarter earnings beat estimates, but stock dives on GLP-1 pill trial results
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
Yahoo Finance's Anjalee Khemlani reports:
Read more here.
One call out on Airbnb
Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins.
If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid.
Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins.
If there is any positive here, it's that when I caught up with Airbnb's CFO Ellie Mertz about the results, I got the sense demand is staying solid.
SoftBank swings to profit on vision fund gains ahead of AI push
Bloomberg News reports:
Read more here.
Bloomberg News reports:
Read more here.