Market Watch: US Earnings Roundup. What Investors Need to Know This Week
It's earnings season in the US, and the latest batch of corporate results offers a mixed bag for investors trying to make sense of the current market environment.
From pharmaceuticals to streaming services, let's take a closer look at five notable names that made headlines this week
Spotify (NYSE: SPOT) shares fell 9.6%to $540.10 on Tuesday after the company gave a weaker-than-expected performance outlook for profit and subscriber growth. It saw a 12% increase in subscribers in the first quarter to 268 million, but investors weren't celebrating as the music streaming company missed profit expectations. The company reported an operating profit that fell short, weighed down by over €76 million in 'social charges'—essentially payroll taxes tied to employee salaries and benefits.
American Tower (NYSE: AMT) reported a revenue increase to $2,563 million, despite a sharp drop in net income to $489 million. Investor sentiment was lifted by a dividend hike to $1.70 per share and the issuance of $1 billion in senior notes, and while results were mixed, the broader outlook tied to 5G demand remains positive.
Starbucks (NYSE: SBUX) reported fiscal Q2 revenue of $8.76 billion, a 2% year-on-year increase that came in just below expectations. Adjusted earnings per share fell to $0.41 from $0.68 a year ago, missing forecasted projections. Global same-store sales declined 1%, driven by lower transaction volumes despite ongoing turnaround efforts under CEO Brian Niccol. The weaker-than-expected results led to a more than 6% drop in shares during after-hours trading.
Coca-Cola (NYSE: KO) beat Q1 earnings and revenue estimates, fueled by price hikes and steady demand for its beverages, including Fairlife and energy drinks. Despite a 2% decline in net revenues to $11.1 billion, the company maintained its full-year guidance, expecting 5-6% organic revenue growth and 2-3% EPS growth. The company also addressed concerns over tariffs, stating that the impact is expected to be manageable.
Pfizer (NYSE: PFE) beat earnings expectations in Q1 2025, reporting an adjusted EPS of $0.92. This was despite an 8% drop in revenue to $13.7 billion. The decline was driven by sharply lower sales of Paxlovid (an oral antiviral medication to treat COVID-19) as pandemic-related demand continues to fade.The earnings beat was powered by aggressive cost-cutting. Pfizer is targeting $4.5 billion in savings by end-2025 and reaffirmed its full-year guidance.
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Joanna Sng of The Smart Investor owns shares of Starbucks.
The post Market Watch: US Earnings Roundup. What Investors Need to Know This Week appeared first on The Smart Investor.
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