ARM, McDonald's On Deck Wednesday As AI Demand, Consumer Spending Face Test
Benzinga Insights 3 hours ago
Earnings
ARM Holdings headlines Wednesday’s reports, with investors looking for evidence that AI-related demand can support the chip designer after a sharp stock pullback. McDonald’s, Novo Nordisk, Uber Technologies, CVS Health
ARM Holdings headlines Wednesday’s reports, with investors looking for evidence that AI-related demand can support the chip designer after a sharp stock pullback. McDonald’s, Novo Nordisk, Uber Technologies, CVS Health and Emerson Electric report before the open; Qualcomm, McKesson, MercadoLibre and Motorola Solutions follow after the close.
Key Reports Before The Bell
McDonald’s (NYSE:MCD) — Q3 — 7:00 a.m. ET
- EPS: $3.38 est. vs. $3.22 a year ago (+5%)
- Revenue: $7.28 billion est. vs. $7.08 billion a year ago (+3%)
- Stock: +12.8% past month, -14.0% YTD, 23.1% below its 52-week high
- Analyst view: Buy consensus, $290 target (19 analysts)
The fast-food chain has beaten estimates in six of its past eight quarters, but the focus remains on whether U.S. execution and comparable-sales momentum can improve. In Q2, it beat on EPS but missed revenue. On its August call, management reported slower U.S. comparable sales growth of 0.8% amid broader strategic initiatives. Mizuho maintained its Neutral rating while lowering its target to $260 from $290 in October.
Novo Nordisk AS (NYSE:NVO) — Q3 — 1:30 a.m. ET
- EPS: $0.81 est. vs. $1.03 a year ago (-21%)
- Revenue: $11.39 billion est. vs. $11.74 billion a year ago (-3%)
- Stock: +6.8% past month, -21.2% YTD, 37.6% below its 52-week high
- Analyst view: Hold, $40 target (2 analysts)
The drugmaker has beaten estimates in seven of its past eight quarters, with the report set to test whether GLP-1 volume growth can offset lower realized prices. In Q2, it beat on both EPS and revenue. On its August call, management highlighted the global Wegovy pill launch, which had reached 1.5 million users, alongside continued strength in its obesity portfolio.
Uber Technologies (NYSE:UBER) — Q3 — 6:55 a.m. ET
- EPS: $0.91 est. vs. $0.81 a year ago (+12%)
- Revenue: $14.69 billion est. vs. $13.47 billion a year ago (+9%)
- Stock: -4.0% past month, -18.4% YTD, 33.4% below its 52-week high
- Analyst view: Buy consensus, $103 target (20 analysts)
Uber has beaten estimates in five of its past eight quarters, making bookings growth, margin expansion and progress toward autonomous-vehicle commercialization the key pressure points. In Q2, it missed on both EPS and revenue. On its August call, management emphasized 22% gross-bookings growth, more than $10 billion in free cash flow and the acquisition of Delivery Guru. UBS maintained its Buy rating while lowering its target to $106 from $110 on Nov. 2.
CVS Health (NYSE:CVS) — Q3 — 6:30 a.m. ET
- EPS: $1.64 est. vs. $1.60 a year ago (+2%)
- Revenue: $104.76 billion est. vs. $102.87 billion a year ago (+2%)
- Stock: +5.3% past month, +15.4% YTD, 17.2% below its 52-week high
- Analyst view: Buy consensus, $114 target (15 analysts)
The health-care company has beaten estimates in seven of its past eight quarters, with investors looking for continued operating discipline after management raised its full-year outlook in August. In Q2, it beat on both EPS and revenue. On its August call, management cited strong operating income and lifted full-year adjusted EPS guidance to $7.90-$8.10. Leerink Partners maintained its Outperform rating while lowering its target to $112 from $119 in October.
Emerson Electric (NYSE:EMR) — Q4 — 6:30 a.m. ET
- EPS: $1.85 est. vs. $1.62 a year ago (+14%)
- Revenue: $5.12 billion est. vs. $4.86 billion a year ago (+5%)
- Stock: +2.4% past month, +25.2% YTD, 2.9% below its 52-week high
- Analyst view: Buy consensus, $175 target (10 analysts)
Emerson has beaten estimates in seven of its past eight quarters, and the test is whether strong orders and margin gains can justify a stock trading near its 52-week high. In Q3, it beat on both EPS and revenue. On its August call, management pointed to 6% underlying sales growth, strong performance in Test and Measurement and Ovation, and wider segment margins. Morgan Stanley maintained its Underweight rating while lowering its target to $140 from $145 on Nov. 3.
Key Reports After The Bell
ARM Holdings (NASDAQ:ARM) — Q2 — 4:04 p.m. ET
- EPS: $0.42 est. vs. $0.39 a year ago (+8%)
- Revenue: $1.38 billion est. vs. $1.14 billion a year ago (+21%)
- Stock: -33.7% past month, +83.7% YTD, 55.2% below its 52-week high
- Analyst view: Buy consensus, $330 target (15 analysts)
ARM has beaten estimates in all of its past eight quarters, but investors will focus on whether licensing and royalty demand tied to AI can counter the stock’s recent weakness. In Q1, it beat on both EPS and revenue. On its July call, management highlighted record licensing and royalty revenue, introduced the ARM AGI CPU and said demand exceeded $2 billion for fiscal 2027 and 2028. Rosenblatt maintained its Buy rating while lowering its target to $250 from $270 in July.
Qualcomm (NASDAQ:QCOM) — Q4 — 4:00 p.m. ET
- EPS: $2.02 est. vs. $3.00 a year ago (-33%)
- Revenue: $10.15 billion est. vs. $11.27 billion a year ago (-10%)
- Stock: -9.6% past month, -4.5% YTD, 36.9% below its 52-week high
- Analyst view: Hold consensus, $202 target (18 analysts)
Qualcomm has beaten estimates in all of its past eight quarters, while the report faces a tougher comparison and a market debate over handset exposure versus newer data-center and AI opportunities. In Q3, it beat on both EPS and revenue. On its July call, management emphasized expansion into data centers, AI and full-stack software as it pursued growth beyond handsets. Bernstein maintained its Market Perform rating while lowering its target to $155 from $165 on Nov. 2.
McKesson (NYSE:MCK) — Q2 — 4:10 p.m. ET
- EPS: $10.74 est. vs. $9.86 a year ago (+9%)
- Revenue: $109.99 billion est. vs. $103.15 billion a year ago (+7%)
- Stock: +9.7% past month, +22.4% YTD, 2.4% below its 52-week high
- Analyst view: Buy consensus, $1,009 target (10 analysts)
McKesson has beaten estimates in all of its past eight quarters, with investors looking for continued strength in its North American pharmaceutical and oncology operations. In Q1, it beat on both EPS and revenue. On its August call, management cited 8% revenue growth, stronger adjusted earnings and raised full-year EPS guidance after a strong start to the fiscal year. Mizuho maintained its Neutral rating while raising its target to $1,020 from $905 in October.
MercadoLibre (NASDAQ:MELI) — Q3 — 4:15 p.m. ET
- EPS: $9.30 est. vs. $8.32 a year ago (+12%)
- Revenue: $10.70 billion est. vs. $7.41 billion a year ago (+44%)
- Stock: -10.1% past month, -17.0% YTD, 31.1% below its 52-week high
- Analyst view: Buy consensus, $2,214 target (9 analysts)
MercadoLibre has beaten estimates in just three of its past eight quarters, so the key question is whether credit growth and the broader commerce ecosystem can offset investment-driven margin pressure. In Q2, it beat on both EPS and revenue. On its August call, management described 75% credit-portfolio growth and improved asset quality, while acknowledging that strategic investments had reduced EBIT margin. Citigroup upgraded the stock to Buy from Neutral while lowering its target to $2,050 from $2,100 in October.
Motorola Solutions (NYSE:MSI) — Q3 — 4:10 p.m. ET
- EPS: $4.35 est. vs. $4.06 a year ago (+7%)
- Revenue: $3.28 billion est. vs. $3.01 billion a year ago (+9%)
- Stock: +7.6% past month, +27.9% YTD, 1.6% below its 52-week high
- Analyst view: Buy consensus, $537 target (6 analysts)
Motorola Solutions has beaten estimates in all of its past eight quarters, with the focus on whether record orders and public-safety demand can sustain premium growth expectations. In Q2, it beat on both EPS and revenue. On its August call, management reported double-digit growth across segments and technologies and raised full-year revenue guidance to approximately $12.975 billion. Piper Sandler maintained its Overweight rating while raising its target to $531 from $530 in September.
Also Reporting Before The Bell
- Datadog (NASDAQ:DDOG) — $0.55 EPS on $1.15 billion revenue
- W.W. Grainger (NYSE:GWW) — $11.66 EPS on $5.07 billion revenue
- Cencora (NYSE:COR) — $4.57 EPS on $87.96 billion revenue
- Cenovus Energy (NYSE:CVE) — $1.21 EPS on $11.71 billion revenue
- Martin Marietta Materials (NYSE:MLM) — $5.62 EPS on $2.31 billion revenue
- SharkNinja (NYSE:SN) — $1.85 EPS on $1.87 billion revenue
- Royalty Pharma (NASDAQ:RPRX) — $1.18 EPS on $883.1 million revenue
- Kraft Heinz (NASDAQ:KHC) — $0.42 EPS on $6.08 billion revenue
- Medline (NASDAQ:MDLN) — $0.34 EPS on $7.71 billion revenue
- United Therapeutics (NASDAQ:UTHR) — $6.00 EPS on $781.6 million revenue
- Qnity Electronics (NYSE:Q) — $1.20 EPS on $1.49 billion revenue
- GLOBALFOUNDRIES (NASDAQ:GFS) — $0.49 EPS on $1.89 billion revenue
Technology: CDW (CDW), Trimble (TRMB), Ralliant (RAL), Avnet (AVT), Hut 8 (HUT), NICE (NICE), Camtek (CAMT), Clear Secure (YOU), Vishay Intertechnology (VSH) and Kyndryl Holdings (KD).
Industrials: Stanley Black & Decker (SWK), Owens-Corning (OC), Timken (TKR), Trex (TREX), Openlane (OPLN), ESAB (ESAB), Brink’s (BCO), ArcBest (ARCB), Navios Maritime Partners (NMM) and Kennametal (KMT).
Health care: Zimmer Biomet Holdings (ZBH), Charles River Laboratories International (CRL), Insulet (PODD), Bruker (BRKR), LivaNova (LIVN), Viridian Therapeutics (VRDN), Harmony Biosciences Holdings (HRMY), Perrigo (PRGO) and BioCryst Pharmaceuticals (BCRX).
Materials: Solstice Advanced Materials (SOLS), Westlake (WLK), Eagle Materials (EXP), Materion (MTRN), Avient (AVNT) and Scotts Miracle Gro (SMG).
Communication services: Chunghwa Telecom (CHT), New York Times (NYT), Madison Square Garden Entertainment (MSGE), Atlanta Braves Holdings (BATRA) and Autohome (ATHM).
Financials: Fidelity National Information Services (FIS), Circle Internet Group (CRCL), Blackstone Secured Lending Fund (BXSL), NCR Atleos (NATL) and Sprott (SII).
Consumer discretionary: Flutter Entertainment (FLUT), Wayfair (W), Acushnet Holdings (GOLF), Marriott Vacations Worldwide (VAC) and Versigent (VGNT).
Utilities: Brookfield Renewable Partners (BEP), Southwest Gas Holdings (SWX), Brookfield Renewable (BEPC) and Avista (AVA).
Consumer staples: Performance Food Group (PFGC), Reynolds Consumer Products (REYN) and Freshpet (FRPT).
Real estate: NNN REIT (NNN), Colliers International Group (CIGI) and Cushman & Wakefield (CWK).
Energy: TORM (TRMD) and Peabody Energy (BTU).
Plus 42 companies valued between $100 million and $2 billion, including Vermilion Energy, ATS and SolarEdge Technologies.
Also Reporting After The Bell
- AppLovin (NASDAQ:APP) — $4.01 EPS on $2.08 billion revenue
- Manulife Financial (NYSE:MFC) — $0.83 EPS on $7.92 billion revenue
- Allstate (NYSE:ALL) — $6.97 EPS on $17.54 billion revenue
- MetLife (NYSE:MET) — $2.76 EPS on $20.00 billion revenue
- Aflac (NYSE:AFL) — $1.80 EPS on $4.21 billion revenue
- Edwards Lifesciences (NYSE:EW) — $0.74 EPS on $1.68 billion revenue
- Vivmark Residential (NYSE:VMRK) — $0.97 EPS on $1.30 billion revenue
- Sun Life Financial (NYSE:SLF) — $1.45 EPS on $8.09 billion revenue
- Revolution Medicines (NASDAQ:RVMD) — -$2.37 EPS on $27.6 million revenue
- Coherent (NYSE:COHR) — $1.93 EPS on $2.31 billion revenue
- Expedia Group (NASDAQ:EXPE) — $8.73 EPS on $4.73 billion revenue
- Nutrien (NYSE:NTR) — $0.75 EPS on $5.71 billion revenue
Health care: Steris (STE), Qiagen (QGEN), Bio-Rad Laboratories (BIO), Caris Life Sciences (CAI), Cytokinetics (CYTK), GRAIL (GRAL), BillionToOne (BLLN), Adaptive Biotechnologies (ADPT), Envista Holdings (NVST), Arcutis Biotherapeutics (ARQT), Veracyte (VCYT), Relay Therapeutics (RLAY), Acadia Pharmaceuticals (ACAD), Acadia Healthcare (ACHC), ADMA Biologics (ADMA), Clover Health Investments (CLOV) and Progyny (PGNY).
Technology: PTC (PTC), Fair Isaac (FICO), MKS (MKSI), SiTime (SITM), Figma (FIG), HubSpot (HUBS), Cognex (CGNX), Viavi Solutions (VIAV), Klaviyo (KVYO), Cirrus Logic (CRUS), Crane NXT (CXT), Fastly (FSLY), Ionic Digital (IOND), Vertex (VERX), Power Integrations (POWI), Veeco Instruments (VECO) and Amplitude (AMPL).
Financials: Corpay (CPAY), Chime Financial (CHYM), Primerica (PRI), Victory Capital Holdings (VCTR), Enact Holdings (ACT), MGIC Investment (MTG), Remitly Global (RELY), Blue Owl Capital (OBDC), Radian Group (RDN), Blue Owl Technology Finance (OTF), Sezzle (SEZL), Dave (DAVE), Palomar Holdings (PLMR), Genworth Financial (GNW), HCI Group (HCI) and Encore Capital Group (ECPG).
Materials: Amcor (AMCR), Royal Gold (RGLD), CF Industries Holdings (CF), Pan American Silver (PAAS), Coeur Mining (CDE), Albemarle (ALB), B2Gold (BTG), OceanaGold (OGC), Warrior Met Coal (HCC), Aris Mining (ARIS), Trekor Metals (TGB), Fortuna Mining (FSM), Titan America (TTAM) and Ingevity (NGVT).
Energy: Tenaris (TS), Texas Pacific Land (TPL), Permian Resources (PR), Western Midstream Partners (WES), APA (APA), Chord Energy (CHRD), South Bow (SOBO), Magnolia Oil & Gas (MGY), Murphy Oil (MUR), Kinetik Holdings (KNTK), Solaris Energy Infrastructure (SEI), Comstock Resources (CRK) and Gulfport Energy (GPOR).
Industrials: ITT (ITT), Curtiss-Wright (CW), Paycom Software (PAYC), Watts Water Technologies (WTS), U-Haul Holding (UHAL), Matson (MATX), Joby Aviation (JOBY), VSE (VSEC), Tutor Perini (TPC), Mueller Water Products (MWA), CoreCivic (CXW) and Allegiant Travel (ALGT).
Real estate: Host Hotels & Resorts (HST), American Homes 4 Rent (AMH), Zillow Group (ZG), Macerich (MAC), Rayonier (RYN), Tanger (SKT), Park Hotels & Resorts (PK), LandBridge (LB) and Smartstop Self Storage REIT (SMA).
Utilities: Atmos Energy (ATO), Eversource Energy (ES), National Fuel Gas (NFG), Black Hills (BKH), Ormat Technologies (ORA), NorthWestern Energy Group (NWE) and American States Water (AWR).
Communication services: News (NWS), TKO Group Holdings (TKO), Snap (SNAP), Lumen Technologies (LUMN), Magnite (MGNI) and AMC Entertainment Holdings (AMC).
Consumer staples: Coca-Cola Consolidated (COKE), e.l.f. Beauty (ELF), Interparfums (IPAR) and Coty (COTY).
Consumer discretionary: Cava Group (CAVA), Dutch Bros (BROS), Grand Canyon Education (LOPE) and Pattern Group (PTRN).
Plus 115 companies valued between $100 million and $2 billion, including Sunrun, Western Union and Redwire.