Earnings Data Deluge

We’re being spared major economic reports this Hump Day, so the market can better focus on the bevy of Q2 earnings reports coming down the pike. This is the busiest day of earnings reportage so far this quarter. Stocks are rebounding slightly from yesterday’s light selloff: the Dow +110 points, the S&P 500 +8, the Nasdaq +37 and the small-cap Russell 2000 +1 point at this hour.

We also await news on any new trade deals that might emerge; currently, we’re still incomplete on this matter with tariff deals remaining a moving target. But with Jobs Week behind us and CPI/PPI/Retail Sales still a week away, Q2 earnings will necessarily lead the way this morning.

Earnings Results at a Glance: Disney, McDonald’s & More

Even though we refer to this as “Q2” earnings season, The Walt Disney Company (DIS) reported fiscal Q3 results ahead of today’s opening bell. Earnings of $1.61 per year outperformed expectations of $1.46, for a +10.3% earnings beat in the quarter. Revenues, however, came up -0.14% light of the Zacks consensus to $23.65 billion, up from $23.16 billion a year ago.

The Disney+ streaming service, with +1.8 million new subscribers over the past year, now works with positive operating income of $346 million, and is considered the anchor of the entertainment conglomerate’s quarter. Parks & Experiences were also up notably in the quarter. Shares are down marginally on the news.

McDonald’s (MCD) also outpaced estimates on its Q2 bottom-line this morning, with earnings of $3.19 per share beating the Zacks consensus by 4 cents. Revenues of $6.84 billion amounted to a +1.92% surprise, up +5% year over year. Comps reached +3.8% overall — +2.5% in the U.S. and +4% Internationally. Shares are up +4.5% in early trading, now swinging into the green year to date.

Shopify (SHOP) shares are surging +14% ahead of the open on stronger-than-expected numbers in its Q2 report this morning: earnings of 35 cents per share on revenues of $2.68 billion in the quarter surpassed expectations by +25% and +5.5%, respectively. This is a nice bounce-back for the Canadian e-commerce giant; it’s the first earnings beat in the past three quarters.

Uber (UBER) beat earnings estimates by a penny to 63 cents per share, with revenues of $12.65 billion bettering the consensus by +1.57%. The rideshare leader also announced a $20 billion share buyback. UBER shares, which have risen +48% year to date, are down marginally on the news.

Wrapping up this earnings morning, Honda Motor Co. (HMC) posted a +90% earnings surprise in its fiscal Q1 report this morning — 97 cents per ADS versus 51 cents anticipated — which more than makes up for the -75% miss in the prior quarter. Planet Fitness (PLNT), a Zacks Rank #2 (Buy) coming into its Q2 report, beat estimates by +8.86% to 86 cents in the quarter. Shares are flat ahead of the open.

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This article originally published on Zacks Investment Research (zacks.com).

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