By Bill Peters
Earnings Watch: A quieter week ahead, with results due from Cisco and WeightWatchers
Cisco reports quarterly results on Wednesday.
This summer, creeping optimism has crashed into July’s flop of a jobs report, President Donald Trump’s widening trade war and signs of its potential impact. Sentiment on the economy and the consumer is muddled. IT consulting firm Gartner Inc. (IT) last week said even small spending decisions among its corporate clients were getting kicked up to top executives for sign-off – behavior its CEO said they’ve seen in “every recession.”
But overall, executives on quarterly earnings calls have talked about a recession a lot less over the last two months, according to a FactSet analysis published Friday.
FactSet searched for the word “recession” in earnings call transcripts for S&P 500 companies over a period that ranged from June 15 to Thursday. Over that period, “recession” came up on 16 earnings calls, marking an 87% drop from the first quarter.
Over that period, the harshest of Trump’s tariffs targeting specific nations were on hold or had yet to take effect, and markets had shrugged off his biggest threats. Investors were also awaiting more hard data on the trade war’s impact, betting that Trump was bluffing, or hoping the deals he struck with a handful of nations offered some clarity on the U.S.’ approach to negotiations. New U.S. tariffs kicked in on Thursday.
After two jam-packed weeks, the week ahead in earnings is quieter. More detail about how shoppers are doing will emerge later this month, when big retailers like Walmart Inc. (WMT) and Target Corp. (TGT) report results.
“The common theme across our food retail coverage includes a consumer seeking value,” BMO analysts said in a note on Friday.
This week in earnings
Eight S&P 500 companies report second-quarter results this week, according to FactSet.
Highlights include farming-equipment maker Deere & Co., as it tries to work around what, as of May, was a roughly $500 million hit from tariffs for its fiscal year. For more on the trade war’s impact on fashion, look to results from handbag and accessories maker Tapestry Inc. (TPR), which relies heavily on Vietnam, Cambodia and the Philippines for production.
Brinker International Inc. (EAT), the parent company of Chili’s, also reports, as casual-dining restaurants and their fast-food counterparts battle to offer the lowest prices. Earnings are also forthcoming from AMC Entertainment Holdings Inc. (AMC), Advance Auto Parts Inc. (AAP) and CAVA Group Inc. (CAVA)
The call to put on your calendar
WeightWatchers’ new start: WW International Inc. (WW), the company also known as WeightWatchers, reports quarterly results on Monday, after emerging from bankruptcy last month with a renewed focus on helping women through menopause. Weight-loss drugs like Wegovy have upended the way people think about their diets. While WeightWatchers last month said it wants to bring together “the best tools of modern medicine, like GLP-1s, with science-backed lifestyle change,” Wall Street will likely have questions about the road ahead.
The number to watch
Cisco sales: IT networking giant Cisco Systems Inc. (CSCO) reports results on Wednesday. The focus will be on the company’s moves in artificial-intelligence infrastructure, after showing momentum during the spring, as well as in quantum computing.
-Bill Peters
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08-10-25 1000ET
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