US Earnings Week Ahead: Walt Disney, Uber, and Pepsi Co
By Kyle Rodda | 14:43 (UTC), 2 February 2024
The earnings season in the US continues, with major companies such as Walt Disney Co., Uber, and Pepsi Co. set to report their quarterly results. The latest reports from the Magnificent Seven have shown mixed results, and according to FactSet, the S&P 500 is projected to experience negative earnings growth for Q4, with further downgrades in estimates for the upcoming quarter.
Walt Disney Co. (DIS)
Walt Disney Co. is scheduled to report its earnings after the market closes on Wednesday, February 7th. Analysts expect a modest increase in earnings of 2.4%, reaching $1.01 per share, with a slight revenue growth of 1.3%. The anticipated performance is attributed to a slowdown in the parks and recreation segment as consumer spending normalizes post-pandemic. Investors are also focused on the company's strategic direction following the reinstatement of former CEO Bob Iger, amid ongoing concerns from activist investors regarding the company's recent performance.
Uber Inc. (UBER)
Uber Inc. will release its earnings before the market opens on Wednesday, February 7th. Analysts predict a significant drop in earnings per share (EPS), forecasting a 42% decline from the previous year to $0.17. Despite this, the market remains optimistic about Uber's future, as the company continues to dominate the market and benefits from increased customer mobility and growth in delivery services, particularly as consumers shift from dining out to dining in. Recent bullish trends in tech stocks have also contributed to Uber's share price reaching new all-time highs.
Pepsi Co. (PEP)
Pepsi Co. is set to announce its quarterly earnings before the market opens on Friday, February 9th. Analysts project a modest growth in earnings and revenue, estimating a 3.1% increase in earnings and a 1.6% rise in revenue, with EPS expected to be $1.72. Despite facing challenges such as rising costs and softening consumer demand, Pepsi's effective cost management and strong pricing power are expected to support its financial performance. Although the stock has shown a long-term uptrend, it remains below record levels as growth momentum appears to be slowing.