Wednesday, July 13
Thursday, July 14
Friday, July 15
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Yum! Brands (YUM)
Consumer Discretionary - Hotels, Restaurants & Leisure | Reports July 13, after the close.
The Estimize consensus is looking for earnings of 76 cents per share on $3.10 billion in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top. Compared to a year earlier, earnings are expected to grow by 9% with revenue remaining unchanged. Revisions activity since Yum’s last report show that EPS estimates are rising into the report, while sales have trended downward.
What to Watch: While the fast food industry has rebounded in recent years, Yum’s results have been mixed. Earnings have seen double digit gains in the last 3 quarters while revenue has been near zero or negative over the same time period. The stock has largely tracked these ups and downs, decreasing 5% in the past 12 months.
Yum Brands is responsible for operating notable chains such as KFC, Pizza Hut and Taco Bell. In recent quarters there have been robust domestic results which have offset sluggish growth internationally. The first quarter featured a system sales increase of 5% with same store sales up 2% over the same period. Yum China stood out compared to its other divisions, boasting an 11% rise in system wide sales and 6% in same store sales.
Comps are expected to remain high this quarter on the back of strength in the Taco Bell, KFC, and Pizza Hut brands. Taco Bell has been hugely successful with its breakfast offerings while menu innovation and increased efficiency in KFC and Pizza Hut should also drive comps. Emerging markets might have a difficult time sustaining its upward momentum due to currency headwinds. Meanwhile, China continues to face headwinds in the form of  a stagnant economy, fall out from food safety scandals and increasing competition.
Delta Airlines (DAL)
Industrials - Airlines | Reports July 14, before market open.
The Estimize consensus is calling for earnings per share of $1.62 on $10.55 billion in revenue, 7 cents higher than Wall Street on the bottom line and $17 million on the top. Compared to a year earlier this represents a 32% increase in earnings with sales expected to decline by 1%. Per share estimates have dropped 15% in the past 3 months and should continue to be cut over the next few days. Fortunately, the stock reacts well to earnings, rising 5% in the month following a report.
