Southwest Waves Goodbye to "Bags Fly Free" Era
United CEO Scott Kirby was more direct: "It'll be good for everyone else. It's the slaying of a sacred cow. I view it as a big deal."The baggage fee announcement is just the latest in a series of changes since activist investor Elliott Investment Management took a $1.9 billion stake in Southwest last year. The airline is also introducing assigned seating, premium seats, and red-eye flights—all features of traditional carriers it once proudly stood apart from.Last month, Southwest cut 15% of its corporate workforce, eliminating 1,750 jobs in the first mass layoffs in company history. The company estimates these cuts will save $210 million this year and $300 million in 2026.Southwest shares jumped more than 6% in Tuesday trading following the announcement.
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Earnings live: Intel to cut 15% of workforce, Tesla stock falls after earnings miss
Second quarter earnings season is in full swing, and the results have been largely positive so far, with more positive surprises than negative ones. Companies had a lower bar to clear coming into the quarter, as analysts tempered their expectations amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy. This week, investors will get a glimpse of how corporate leaders are navigating these challenges, with 112 S&P 500 companies reporting results, including GM (GM), Coca-Cola (KO), Alphabet (GOOGL, GOOG), and Tesla (TSLA). Data from FactSet published Friday showed that with 12% of the index having reported results, analysts now expect S&P 500 companies to report a 5.6% jump in earnings per share during the second quarter. Heading into the quarter, analysts expected S&P 500 earnings to rise 5% in Q2, which would mark the slowest pace of earnings growth since the fourth quarter of 2023. Here are the latest updates from corporate America. Intel stock rises on Q2 revenue beat, plans to cut 15% of workforce Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Southwest CFO says decision to lower guidance by $1 billion was 'macro-driven' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Blackstone assets under management surge, COO says dealmaking pause 'is behind us' Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Alphabet in 'AI (beast) mode': 5 takeaways from Google's earnings call Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Uptick in coal shipments boosts Union Pacific earnings Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. American Airlines restores 2025 forecast, flags economic worries for keeping it broad American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. Honeywell beats on earnings, raises 2025 forecasts on sustained demand for aerospace parts, services Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Keurig Dr. Pepper earnings beat estimates as energy drinks shine, but coffee inflation lurks Yahoo Finance's Brian Sozzi reports: Read more here. Tesla stock takes a leg down during earnings call Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Chart: Chipotle foot traffic declines for second straight quarter Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Southwest misses profit expectations as weak domestic demand erodes fares Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Wall Street looks to Google's earnings call for details on higher-than-expected capex number Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Mattel stock falls after the toymaker posts steeper sales decline than expected Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Chipotle plunges after company reports second-straight sales decline, cuts guidance Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. IBM results beat estimates on AI mainframe refresh, consulting revival Reuters reports: Read more here. T-Mobile dials up a big earnings beat, stock jumps T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. ServiceNow jumps after big earnings beat ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. Tesla misses on Q2 earnings, but says 'more affordable' model planned for 2025 production Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Google beats on Q2 earnings but increased capex spending sends stock lower Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Intel stock rises on Q2 revenue beat, plans to cut 15% of workforce Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel (INTC) second quarter revenue beat analyst estimates, but its earnings fell short of expectations. The chip giant also said it is slashing its workforce by 15% and expects to have approximately 75,000 employees by the end of the year. Intel's new CEO Lip-Bu Tan has already undertaken or is exploring several cost-cutting measures. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers. Yahoo Finance's Daniel Howley has more details on Intel's results: Read more here. Intel to report Q2 earnings as Wall Street looks for signs of turnaround Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Intel (INTC) will report its second quarter earnings on Thursday as the company's new CEO, Lip-Bu Tan, continues his attempt to turn around the ailing chip giant. Yahoo Finance's Dan Howley details what to expect when Intel reports: Read more here. Southwest CFO says decision to lower guidance by $1 billion was 'macro-driven' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Southwest (LUV) stock tanked on Thursday after the airline's earnings results missed estimates. Shares fell over 12% as the earnings call with investors began. (You can listen to the full call here.) Earlier on Thursday, Southwest CFO Tom Doxey told Yahoo Finance that the company's disappointing results were primarily caused by broader economic challenges, tariff uncertainty, and weaker consumer sentiment. Doxey confirmed that Southwest lowered its full-year pre-tax profit (EBIT) guidance to $600 million-$800 million from the $1.7 billion forecast previously. 'There's an estimate of about $800 million to $1 billion in revenue degradation that has occurred as a result of the macro,' Doxey said. 'The number is large, but it is macro-driven.' He said that Southwest's domestic travel revenue outperformed peers. But the overall domestic segment underperformed international and premium travel, which are the strengths of other airlines like Delta (DAL) and United (UAL). Southwest's second quarter got off to a rocky start as consumer confidence plummeted to a three-year low after President Trump's "Liberation Day" tariff announcement in April. That translated to lower travel demand at the beginning of the peak summer season. However, things are improving, Doxey said. 'Demand fell off quite quickly during that period,' he noted. 'The great news is we're starting to see that stabilize.' Blackstone assets under management surge, COO says dealmaking pause 'is behind us' Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Blackstone (BX) surprised Wall Street analysts on Thursday when it reported its assets under management surged 13% to a record $1.21 trillion. Profits also rose 72% to $764 million, compared to the second quarter of last year, sending shares nearly 5% higher in early trading. Notably, Blackstone's No. 2 echoed other big banks in the company's earnings call in saying that the dealmaking pause is behind us. Yahoo Finance's David Hollerith reports: Read more here. Alphabet in 'AI (beast) mode': 5 takeaways from Google's earnings call Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Alphabet (GOOG, GOOGL) shares rose in early trading as investor sentiment grew positive on the stock following its bullish earnings call commentary and strong Q2 results. And my colleague Brian Sozzi jotted down some takeaways from the earnings call that help explain the bullish mood today: Sozzi noted that, in many ways, it's surprising that Alphabet stock is up just 1.5% this morning, as it's trading at only 19.3 times forward earnings on a PE basis (S&P 500 is at 24 times). Several Wall Street analysts agreed. "AI (beast) mode — it's time to close the valuation gap," KeyBanc analyst Justin Patterson said. Wedbush analyst Dan Ives added, "We continue see a favorable risk/reward for Alphabet and think there is a case for multiple expansion in the coming quarters as investors gain more comfort around the current macro environment, regulatory risk, and the impact of generative AI on the business." Read more takeaways from Google's earnings call here. Uptick in coal shipments boosts Union Pacific earnings Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. Union Pacific (UNP) second quarter profits exceeded Wall Street's expectations, driven by operational improvements, higher freight volumes, and improved pricing. The stock fell 2% ahead of the opening bell Thursday. The economic bellwether saw an uptick in coal shipment volumes in the second quarter, as well as in shipments of grain products and industrial chemicals. The improvement in coal shipments stood out after President Trump signed executive orders boosting the industry, which has been a weak spot for railroad operators. Union Pacific confirmed that it is in talks with Norfolk Southern (NSC) on a possible merger that would reshape the US's railroad industry. The magnitude of a combination of the railroad operators would put the deal under close regulatory and antitrust scrutiny. Here's what Union Pacific reported in Q2, per Reuters: Read more here. American Airlines restores 2025 forecast, flags economic worries for keeping it broad American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. American Airlines (AAL) maintained a broad 2025 forecast on Thursday, citing economic uncertainty, with one of the outcomes being a loss to profit. The carrier's shares fell 6% before the bell. The airline is facing challenges in the domestic travel market, where travel spending remains weak due to US tariffs and budget cuts. Reuters reports: Read more here. Honeywell beats on earnings, raises 2025 forecasts on sustained demand for aerospace parts, services Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Honeywell (HON) stock fell premarket despite reporting an earnings beat and guidance raise. Adjusted earnings per share of $2.75 exceeded Wall Street's estimates of $2.66 per share. Sales hit the top end of the company's guidance at $10.4 billion, compared to estimates of $10.1 billion. Strong demand for aerospace parts and maintenance services lifted Honeywell's results as it prepares to split into three companies. The company's aerospace division, its biggest revenue generator, posted a 10.7% jump in sales to $4.31 billion in the second quarter, as the Boeing (BA) and Airbus ( supplier benefited from rising demand and a shortage of new jets. Honeywell raised its revenue outlook and now expects between $40.8 billion and $41.3 billion for the year, up from the $39.6 billion and $40.5 billion it had previously forecast. It also sees 2025 adjusted profit per share between $10.45 and $10.65, up from its previous forecast of $10.20 to $10.50. Read more here from Reuters. Keurig Dr. Pepper earnings beat estimates as energy drinks shine, but coffee inflation lurks Yahoo Finance's Brian Sozzi reports: Read more here. Yahoo Finance's Brian Sozzi reports: Read more here. Tesla stock takes a leg down during earnings call Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Tesla (TSLA) stock took a firm leg down during the company's quarterly earnings call on Wednesday as the company's CFO warned of "adverse impacts" from the "big bill" President Trump recently signed into law. Notably, the bill takes aim at two key tax credits that Tesla has taken advantage of to scale its company: the electric-vehicle tax credit and the solar tax credit. "The big bill has certain adverse impacts, even for the energy business," Tesla CFO Vaibhav Taneja. "We're doing our best to manage through this," he added. "But we will see shifts in demand and profitability." He said tariff costs increased to around $300 million this quarter. Tesla was down as much as 3.5% after seesawing between green and red right after the release of its earnings report — which you can see more details of by continuing to scroll. Also on the call, CEO Elon Musk predicted Tesla would "have autonomous ride-hailing reach half the population of the US by the end of the year." "That's at least our goal, subject to regulatory approvals," he added. Chart: Chipotle foot traffic declines for second straight quarter Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Chipotle (CMG) stock tanked 9% following second quarter results and as the earnings call began (listen to the live call here). As the chart below shows, foot traffic fell more than expected, accelerating the slowdown in traffic that began in the first quarter. Yahoo Finance's Brooke DiPalma reports that overall foot traffic fell 4.9% against the 4.4% drop that had been forecast by the Street. Chipotle cut its guidance and said it expects same-store sales to be flat for the full year. On the earnings call, CEO Scott Boatwright highlighted initiatives — in marketing, the value proposition, menu innovation, and a revamped rewards program — aimed at jump-starting sales. But Boatwright acknowledged that the fast-casual chain is facing a slowdown in trends and one of the most challenging consumer backdrops in years. Southwest misses profit expectations as weak domestic demand erodes fares Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Southwest Airlines (LUV) missed Wall Street estimates for second quarter profit on Wednesday as a sluggish start to the peak summer travel season has translated to weak domestic travel demand and softer fares. Southwest reported operating revenue of $7.24 billion in the quarter through June, compared with $7.35 billion a year earlier. The budget carrier reported an adjusted profit per share of $0.43, compared with analysts' average expectations of $0.51, according to data compiled by LSEG. While Delta Air Lines (DAL) and United Airlines (UAL) were buoyed by more affluent customers, low-cost carriers like Southwest have noted their price-sensitive customers are coming under pressure. Still, airline executives and analysts have signaled that travel demand has remained broadly steady. Read more from Reuters. Wall Street looks to Google's earnings call for details on higher-than-expected capex number Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Alphabet (GOOG) earnings indicated solid growth across the business, but it was the capital expenditures number that was "a bit concerning," according to Roundhill Investments CEO Dave Mazza. Google said capital expenditures will climb to $85 billion; it previously projected $75 billion. On the earnings call, investors will be looking for answers on where that spending is going. Rohit Kulkarni, senior research analyst at ROTH MKM, also weighed in on the initial Street reaction to Google's earnings. "Fundamentally, I think we're seeing acceleration in revenues in a very large company," Kulkarni said. "Google Search is accelerating. YouTube growth has accelerated. Google Cloud has accelerated, and even subscriptions have accelerated." "Having said that," Kulkarni added, "I think the stock reaction here is a knee-jerk reaction about where are you going to spend those extra $10 billion and what is the ROI that you're seeing from the existing spend? That's a sentiment that probably drives a lot of other megacaps, in my opinion." Google's earnings call is live now. You can listen in here. Mattel stock falls after the toymaker posts steeper sales decline than expected Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Mattel (MAT) posted a bigger-than-expected drop in second quarter revenue on Wednesday as cautious inventory planning by retailers amid global trade uncertainties weighed on demand, per Reuters. Barbie sales in North America were weak during the quarter, with worldwide gross billings for dolls declining 19%. The infant, toddler, and preschool category, which includes Fisher-Price, Baby Gear, and Power Wheels brands logged a 25% drop. The toymaker, which also sells popular brands such as Hot Wheels, Fisher-Price, and Uno, did reinstate its 2025 sales and profit forecast after pulling it last quarter in the midst of shifting tariff policies. The company now expects 2025 net sales to rise 1% to 3%, compared to its February target of a 2% to 3% increase. It forecast adjusted per-share profit between $1.54 and $1.66, below its prior estimate range of $1.66 to $1.72 apiece. Earlier in the day, rival Hasbro (HAS) raised its annual revenue outlook, betting on the strength of its digital games and cost-cutting efforts to weather the impact of mounting economic and tariff uncertainty. Shares of the company fell 4% in trading after the bell. Chipotle plunges after company reports second-straight sales decline, cuts guidance Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. Chipotle (CMG) on Wednesday reported another quarter of negative sales growth as the company navigates an uncertain consumer environment and new leadership deals with the most challenging backdrop for the chain in years. The company reported a same-store sales decline of 4% in the second quarter, more than the 2.9% decline Wall Street expected. Traffic fell more than expected, down 4.9%, compared to the 4.4% drop lower the Street predicted. That's an acceleration from the 2.3% drop seen in the first quarter, which marked Chipotle's first quarterly foot traffic decline since 2022. Chipotle also cut its guidance again, saying it now expects flat full year same-store sales growth, compared to an increase in the low-single-digit range. Ahead of Wednesday's report, analysts expected same-store sales to grow 0.8% for the fiscal year. Read more here. IBM results beat estimates on AI mainframe refresh, consulting revival Reuters reports: Read more here. Reuters reports: Read more here. T-Mobile dials up a big earnings beat, stock jumps T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Read more here. ServiceNow jumps after big earnings beat ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. ServiceNow (NOW) stock surged after its results beat expectations. Yahoo Finance's Brian Sozzi has the full report, including comments from its CEO: Read more here. Tesla misses on Q2 earnings, but says 'more affordable' model planned for 2025 production Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Tesla (TSLA) stock initially spiked 1% after reporting second quarter results but fluctuated as investors digested the earnings miss. Here's a look at the top takeaways investors were watching in Tesla's results: The core auto business: Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 9% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected. The cheap EV: Tesla said its "more affordable" model was still slated for 2025 production. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year. There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives. Robotaxi rollout Tesla said its purpose-built robotaxi was still scheduled for volume release production starting in 2026. Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming. Read more here. Google beats on Q2 earnings but increased capex spending sends stock lower Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Google parent Alphabet (GOOG, GOOGL) reported a top- and bottom-line second quarter beat and said capital expenditures will climb to $85 billion, $10 billion more than Google previously projected. Google stock initially moved lower following results but reversed higher as the earnings call kicked off. Yahoo Finance's Dan Howley reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
an hour ago
- USA Today
Southwest Airlines CEO: Company could eventually introduce lounges, long-haul flights
Against the backdrop of lower than expected earnings, Southwest Airlines CEO Bob Jordan hinted that the carrier will be doing more in the future to change its business model and become more like its U.S. competitors. Southwest reported earnings of $7.24 billion in the second quarter, though analysts previously expected the figure to be closer to $7.29 billion. Some of those changes could even include introducing lounges or expanding its fleet to serve destinations that are farther-afield from its current, domestically-focused network. "I want to reiterate that our current initiatives are not the endpoint in our product strategy and evolution. As we've stated before, we are committed to evolving further to meet the needs of our current and our future customers," Jordan said during the company's second quarter earnings call, which took place July 24. Southwest has already introduced checked bag fees and announced that it will officially introduce assigned and extra legroom seating in January 2026. Tickets for those flights go on sale next week. While those and other changes make Southwest more like other airlines, Jordan said they're just the first step in the company's overhaul. Among the "limited number of things" he said the airline can do down the road to capture more traveler demand are steps like introducing lounges or expanding the network by adding longer-range planes to its fleet. While Jordan acknowledged Southwest has no current plans to implement any of those measures, he said, "we're going to follow the customer and work very hard to give you reasons not to split your wallet," meaning to make Southwest more of a one-stop shop for airline customers. Contributing: Reuters Zach Wichter is a travel reporter and writes the Cruising Altitude column for USA TODAY. He is based in New York and you can reach him at zwichter@
Yahoo
2 hours ago
- Yahoo
Southwest Falls on $1 Billion Profit Cut From Tariff Fallout
(Bloomberg) -- Southwest Airlines Co. plunged after the carrier said it expects economic turmoil to wipe out as much as $1 billion of its annual pre-tax profit this year and offered shareholders a much-reduced outlook for the balance of 2025. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Can This Bridge Ease the Troubled US-Canadian Relationship? Earnings before interest and taxes for the year will be $600 million to $800 million, Southwest said in a statement on Wednesday that also included second-quarter results that fell short of analyst expectations. The carrier originally expected $1.7 billion in pre-tax profit at the start of the year. Southwest is one of a few companies so far to put a price on the fallout from President Donald Trump's efforts to reset global trade, inflation and economic uncertainty that caused travel demand to collapse early this year. Most carriers pulled financial guidance in April, saying it was impossible to forecast demand. Domestic leisure travel — Southwest's bread and butter — stabilized in the second quarter, 'and we already see signs that demand is coming back in volumes,' Chief Executive Officer Bob Jordan said in an interview on Thursday. Business travel remains down, largely on cutbacks in spending by state and federal governments, he said. 'My only caution is I've been in this business a long time and it's hard to read a few weeks into a trend,' Jordan said. 'I don't have any less optimism than anybody else, I'm just always cautious.' Rival American Airlines Group Inc., which also is highly dependent on the US domestic market, reinstated its annual earnings guidance on Thursday in a lower range than expected. Southwest Air fell 11% to $33.45 as of 2:08 p.m. New York time, its largest drop since April 10. The stock is down about 1% this year, compared with the S&P Supercomposite Airlines Index's roughly 10% decline. The carrier offered a more cautious outlook than larger rivals United Airlines Holdings Inc. and Delta Air Lines Inc. The airlines said earlier this month that travel in the US has picked up after being hammered at the start of 2025. Trump's dizzying tariff campaign, inflation and disruptions at some key airports rattled business and consumer confidence and cratered demand earlier in the year. United and Delta have extensive global networks and premium seating that Southwest lacks, allowing rivals to tap into markets where demand has remained stronger. Delta cited improved corporate travel and an uptick in consumer trips later in the year, while United said it may beat its 2025 earnings targets on the recovery in demand. Southwest is in the middle of rolling out an extensive makeover plan that breaks from a one-size-fits-all business model that set it apart from rivals for more than five decades. Premium fares with more leg room, assigned seats and a new boarding process will debut next year. The carrier also furloughed workers for the first time in its history earlier in 2025. Southwest's business overhaul and leadership shakeup followed a pressure campaign by Elliott Investment Management, one of its biggest shareholders. The airline began charging for checked bags in May, and said Wednesday that results have exceeded expectations with no negative effect on flight operations. Southwest said it expects $350 million in earnings before interest and taxes this year from checked bag fees that began on May 28. That will increase to $1 billion over the course of a full year, the carrier said. It also plans to start selling assigned seats July 29 for flights beginning Jan. 27. Southwest had to offer additional fare discounts after disappointing results with its new basic economy offering, with fewer customers than expected completing a purchase after considering the fare, the carrier said. That cut second quarter revenue from each seat flown a mile by nearly one-half percentage point before the airline could implement a fix, and will reduce the measure this quarter by one percentage point. That measure, known as unit revenue, will be in a range of up 2% to down 2% in the third quarter, while analysts were expecting growth of 1.7%. The airline said it's shifting its capital allocation framework from a cash target to a liquidity target of $4.5 billion, including $3 billion cash and a credit revolver of $1.5 billion. The shift is intended to help the carrier maintain an investment grade credit rating, Chief Financial Officer Tom Doxey told analysts on a call after the company reported results. Southwest also said its board of directors approved a new $2 billion share repurchase program, expected to be completed over a period of as long as two years. Southwest reported adjusted earnings of 43 cents per share in the second quarter, compared to the 53 cents per share analysts estimated. Its second quarter revenue was $7.24 billion, slightly less than the $7.3 billion analysts expected. (Updates throughout with Southwest's shares, details on bag fees, capital allocation.) Burning Man Is Burning Through Cash Elon Musk's Empire Is Creaking Under the Strain of Elon Musk It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan A Rebel Army Is Building a Rare-Earth Empire on China's Border How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. 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