Disney, Pepsi, Uber Set to Report During Lackluster Earnings Season

Their results will shed light on the evolving state of the economy as companies in technology and other sectors face a streak of layoffs, businesses and consumers slow their spending, and as the Federal Reserve works to quell inflation by raising interest rates. A total of 95 S&P 500 companies will report earnings in the week ahead, according to FactSet. 

With about 50% of the S&P 500 having reported their results so far, earnings are on track to see a 5.3% decline from the year-ago period, according to FactSet. That result would mark the first year-over-year earnings decline since the summer of 2020, when the Covid-19 pandemic gripped the economy. 

In addition, fewer companies than usual are beating Wall Street’s estimates this earnings season. So far, of the S&P 500 companies that have reported their quarterly results, 70% had per-share earnings above analyst estimates. That percentage is below the five-year average of 77%.

Among those missing estimates are some industry juggernauts that have been some of the strongest performers in recent years.

Apple Inc.

on Thursday reported an earnings miss as manufacturing disruptions in China hurt its ability to deliver premium iPhones. Chief Executive

Tim Cook

pointed to continued global challenges such as the war in Ukraine, inflation and the lingering effects of the pandemic. 

“We know that Apple is not immune to it,” he said. Apple shares rose following its earnings report, continuing a trend of investors’ dismissing concerns about weaker profits. Overall, the S&P 500 index is up 7.7% in 2023.

The ride-sharing rivals

Uber

and

Lyft Inc.,

set to release earnings Wednesday and Thursday respectively, will share how companies in the gig economy are faring as the U.S. jobless rate is at the lowest level in five decades. 

Disney

and

Fox Corp.’s

earnings, due Wednesday, will provide insight into the state of streaming services as increased competition and an uptick in households who are cutting the cable-TV cord damps user growth. Disney’s report is the first one under the reinstated Chief Executive

Robert Iger

and comes during a proxy battle with the activist investor

Nelson Peltz.

News Corp,

which owns The Wall Street Journal’s parent, Dow Jones & Co., and

Thomson Reuters Corp.

will be reporting Thursday in the midst of an ad slowdown across the media industry. Fox and

News Corp

share common ownership.

Tyson Foods and Kellogg report on Monday and Thursday, respectively, as well as PepsiCo on Thursday. They will offer perspective on the attitude of American consumers toward rising food and grocery prices as a result of inflation. In 2022, food prices increased by nearly 10%, according to the U.S. Department of Agriculture.  

“The consumer, whether it’s in Europe or the U.S., is actually holding up better than what we would have probably expected,”

McDonald’s Corp.

Chief Executive

Chris Kempczinski

said. “There is going to continue to be inflation.”

The restaurant chains Chipotle, on Tuesday, and Yum! Brands Inc., on Wednesday, will provide a readout on demand for eating out.

Starbucks Corp.

reported higher revenue in its recently ended quarter, though higher costs subdued profit.

“We posted strong results despite challenging global consumer and inflationary environments,” Starbucks interim Chief Executive

Howard Schultz

said on the company’s first-quarter earnings call, citing a softer quarter for retail overall and “unprecedented Covid-related headwinds that unfolded in China.”

PayPal on Thursday will provide an update on quarterly results, shortly after the payments company said it would lay off 7% of its workforce, or about 2,000 employees. 

CVS’s earnings report on Wednesday comes as the company and other drugstore chains are rearranging hours at thousands of locations during a shortage of workers and pharmacists.  

AbbVie’s report on Thursday comes as the drugmaker’s arthritis therapy Humira is set to face its first competition in the U.S. from a near-identical copycat. 

Write to Dia Gill at dia.gill@wsj.com

Their results will shed light on the evolving state of the economy as companies in technology and other sectors face a streak of layoffs, businesses and consumers slow their spending, and as the Federal Reserve works to quell inflation by raising interest rates. A total of 95 S&P 500 companies will report earnings in the week ahead, according to FactSet. 

With about 50% of the S&P 500 having reported their results so far, earnings are on track to see a 5.3% decline from the year-ago period, according to FactSet. That result would mark the first year-over-year earnings decline since the summer of 2020, when the Covid-19 pandemic gripped the economy. 

In addition, fewer companies than usual are beating Wall Street’s estimates this earnings season. So far, of the S&P 500 companies that have reported their quarterly results, 70% had per-share earnings above analyst estimates. That percentage is below the five-year average of 77%.

Among those missing estimates are some industry juggernauts that have been some of the strongest performers in recent years.

Apple Inc.

on Thursday reported an earnings miss as manufacturing disruptions in China hurt its ability to deliver premium iPhones. Chief Executive

Tim Cook

pointed to continued global challenges such as the war in Ukraine, inflation and the lingering effects of the pandemic. 

“We know that Apple is not immune to it,” he said. Apple shares rose following its earnings report, continuing a trend of investors’ dismissing concerns about weaker profits. Overall, the S&P 500 index is up 7.7% in 2023.

The ride-sharing rivals

Uber

and

Lyft Inc.,

set to release earnings Wednesday and Thursday respectively, will share how companies in the gig economy are faring as the U.S. jobless rate is at the lowest level in five decades. 

Disney

and

Fox Corp.’s

earnings, due Wednesday, will provide insight into the state of streaming services as increased competition and an uptick in households who are cutting the cable-TV cord damps user growth. Disney’s report is the first one under the reinstated Chief Executive

Robert Iger

and comes during a proxy battle with the activist investor

Nelson Peltz.

News Corp,

which owns The Wall Street Journal’s parent, Dow Jones & Co., and

Thomson Reuters Corp.

will be reporting Thursday in the midst of an ad slowdown across the media industry. Fox and

News Corp

share common ownership.

Tyson Foods and Kellogg report on Monday and Thursday, respectively, as well as PepsiCo on Thursday. They will offer perspective on the attitude of American consumers toward rising food and grocery prices as a result of inflation. In 2022, food prices increased by nearly 10%, according to the U.S. Department of Agriculture.  

“The consumer, whether it’s in Europe or the U.S., is actually holding up better than what we would have probably expected,”

McDonald’s Corp.

Chief Executive

Chris Kempczinski

said. “There is going to continue to be inflation.”

The restaurant chains Chipotle, on Tuesday, and Yum! Brands Inc., on Wednesday, will provide a readout on demand for eating out.

Starbucks Corp.

reported higher revenue in its recently ended quarter, though higher costs subdued profit.

“We posted strong results despite challenging global consumer and inflationary environments,” Starbucks interim Chief Executive

Howard Schultz

said on the company’s first-quarter earnings call, citing a softer quarter for retail overall and “unprecedented Covid-related headwinds that unfolded in China.”

PayPal on Thursday will provide an update on quarterly results, shortly after the payments company said it would lay off 7% of its workforce, or about 2,000 employees. 

CVS’s earnings report on Wednesday comes as the company and other drugstore chains are rearranging hours at thousands of locations during a shortage of workers and pharmacists.  

AbbVie’s report on Thursday comes as the drugmaker’s arthritis therapy Humira is set to face its first competition in the U.S. from a near-identical copycat. 

Write to Dia Gill at dia.gill@wsj.com