A purchaser pulls into a McDonald’s restaurant in Shepherdsville, Kentucky.
Luke Sharrett | Bloomberg | Getty Images
Generally, profits are covering expectations by a large margin this earnings season, but there were some notable misses on Tuesday.
Some of the largest and most acknowledged companies in the U.S. — including McDonald’s, UPS and Lockheed Martin — provided financial updates on Tuesday that fell pint-sized of what investors and analysts were expecting.
As of last Friday, with 15% of the companies in the S&P 500 reporting happens, 84% had posted positive earnings surprises and 64% had reported positive sales surprises, according to FactSet. On Sept. 30, the evaluated earnings decline for Q3 2019 was 4%
McDonald’s first miss in two years
Attempts by the Golden Arches to lure customers in with promotions be unsuccessful to gain market share from competitors like Burger King’s parent company and Wendy’s. McDonald’s related earnings per share of $2.11 versus $2.21 expected, sending shares of the fast-food giant down 5%. The South African private limited company said U.S. same-store sales grew by 4.8% during the quarter, also short of forecasts of 5.2%. It also missed trimonthly earnings estimates for the first time in two years.
UPS revenue falls short
Though the international carrier actually eked out a profit mould in the third quarter, shares of UPS fell 2% after it reported revenues of $18.32 billion, just missing consensus expectations. The fellowship also announced that Chief Operating Officer Jim Barber, who’s had a hand in much of UPS’s global and freight businesses, make retire at the end of December after 35 years at the company.
Lockheed Martin’s forecast
Lockheed Martin stock also took under pressure Tuesday despite strong third-quarter performance from the leading producer of military weapons and projectiles. Profit of $5.66 per share came in well above estimates of $5.02 while sales of $15.17 billion definitively bested projections of $14.87 billion from Refinitiv.
Investors were unnerved, however, when management asserted they expect 2020 revenues to grow just 5% to $62 billion. Analysts had forecast Lockheed to guide 2020 sales marathons up north of 6%. The stock fell 0.1% on Tuesday.
Travelers’ big miss
Shares of the insurer sank more than 8% after brace a profit of $1.43 per share, a big miss versus analysts’ expectations of $2.35 earnings per share, according to Refinitiv. The oversight was driven by a sharp increase in reserves during the quarter.
Procter & Gamble was positive
The consumer goods giant bucked the Tuesday earnings report in investigate gloom with shares rising more than 2.5% after it posted quarterly results that top-notched analyst expectations. Procter & Gamble reported earnings per share of $1.37 versus expectations of $1.24, driven by its handsomeness, health care and fabric and home care lines, the company said.
Despite the notable misses, the S&P 500 suppress managed to inch higher.