We are just two weeks away from the second quarter earnings season, and the lull phase of the first quarter reporting is slowly coming to an end. In the last week of June, eight S&P companies disclosed their earnings. Here is a quick glance at the financial results that were reported for the week ended June 28.
Out of the eight that reported, two missed on revenue and one on earnings per share; the remaining beat the average analyst consensus for both.
When roughly looking at the Q1 season, on average, about 79% of the companies beat their bottom line, while about 55% beat their topline numbers.
The biggest action of the week came from Nike (NKE) after its FY sales and FQ1 guidance landed short of expectations. The sports footwear apparel giant’s report raised concerns about consumer demand in North America, recovery in China, macro factors, and the impact of competition. During the earnings call with analysts (transcript), CEO John Donahoe said FY25 will be a transition year for the company, and revenue is anticipated to fall at a mid-single-digit clip. Thursday’s report sent its stock sliding as much as 20% on Friday, while also hitting the biggest intraday percentage drop since 2001.
On Tuesday after hours, FedEx (FDX) posted an earnings beat and better-than-expected guidance with its FQ4 report, and its shares shot up by as much as 16% the next day. The package delivery giant sees 2025 revenue growth at a low-to-mid single-digit rate and EPS of $20.00 to $22.000 vs. $20.75 consensus. Notably, the company said it is conducting an assessment of the role of FedEx Freight in value-creation plans. It also expects to buyback $2.5 billion of common stock, including $1.0 billion during the first fiscal quarter.
Shares of Carnival (CCL) were trending higher on Tuesday after the company’s FQ2 results beat Wall Street’s expectations and indicated robust demand for cruises, which was evidenced by a new record high in deposits. In addition, the cruiseline operator’s forecast indicated a 20% improvement in adjusted EBITDA for FQ3 and a +$275M revision to adjusted net income for the full year.
General Mills (GIS) on Wednesday reported a wide revenue miss after disclosing a 6.4% decline in its net sales for the fourth quarter, hurt by unfavorable net price realization/mix and lower pound volume. The food manufacturer also set disappointing 2025 organic sales guidance, in the 0% to +1% range vs. the consensus estimate of +1.2%.
Micron Technology (MU) shares tumbled 6.5% in extended-hours trading on Wednesday after the memory chipmaker issued guidance that was in line with estimates, overshadowing a stronger-than-expected third quarter. For Q4, it expects to earn between $1 and $1.16 per share on an adjusted basis, on revenue of $7.6B, plus or minus $200M. Analysts were expecting adjusted EPS of $1.02 and $7.58B in revenue. Adjusted gross margins are forecast to be between 33.5% and 35.5%, with the estimate at 34.5%.
Walgreens Boots Alliance (WBA) on Thursday reported mixed results, lowered its full-year outlook due to a tough overall backdrop for retail, and also announced a major round of store closures as part of a company-wide strategic review. The store closure news also dragged down peers like CVS Health (CVS) and pharmaceutical distributor Cencora (COR).
For the week ahead, wine, beer, and spirits company Constellation Brands (STZ) is the only S&P 500 company expected to report on Wednesday, July 3.
