Coca-Cola (NYSE:KO): Financial performance has greatly slowed down in recent quarters owing to a shift in consumer preference away from unhealthy sugary drinks. The downturn in carbonated soft drink sales have pushed KO toward more water-based beverages and juices. Revenue growth has been strong in these segments as additional volume meets changing demand. Meanwhile efforts to control costs and strategic marketing campaigns should continue to support performance this quarter. Major concerns still remain, including unfavorable currency issues, lower volumes of carbonated soft drinks and heightening uncertainty in Europe following Brexit. Analysts at Estimize have edged down estimates in recent months to reflect these significant near-term headwinds.
Boeing (NYSE:BA): This is shaping up to be a difficult year for Boeing which is expected to post declines across all of its products. Analysts at Estimize are projecting that sales will drop by 9% on a 4% increase in earnings. The company recently announced a 5.5% decline in its commercial aircraft deliveries during the quarter on lagging demand for 737, 777 and 787 Dreamliners. Boeing still enjoys a steady flow of cash from key commercial and defense contracts including with Saudi Arabian Airlines and the U.S. Air Force. A late quarter burst of orders isn’t expected to hit the books this quarter, but could play a role in Q4 guidance. Meanwhile a new license to sell planes in Iran will provide additional support to a struggling top line.
Southwest Airlines (NYSE:LUV): Southwest is the last of the well known budget airlines to report this season. They were dealt positive news yesterday morning following JetBlue's (NASDAQ:JBLU) and Spirit Airlines' (NASDAQ:SAVE) massive earnings beats. In all likelihood, this points to a strong report from the carrier this morning. Southwest has been successful at growing the top and bottom line primarily due to low fuel costs and low fares. Key PRASM metrics have been unable to keep pace and remain a near term threat. Unit revenue recorded a 3.5% decline in the second quarter with management guiding for similar declines in the quarter to be reported.
Biogen (NASDAQ:BIIB): Biogen is one of the more stable companies in an otherwise volatile biotech sector. Its success has been built on the back of its oral MS drug, Tecfidera, which will have investors attention this quarter. The drug’s performance is expected to remain stable as Biogen works to improve sales. Meanwhile, it’s MS franchise which includes 5 proprietary drugs, has been the most dependable source of revenue. In the second quarter, this portfolio generated about $2.2 billion in sales, nearly half of total revenue recorded in the quarter. Biogen also has a handful of drugs in the pipeline that will create a new layer of revenue to add its growing MS franchise. These include two hemophilia drugs, one spinal muscular atrophy treatment and an Alzheimer's drug.
Grubhub (NYSE:GRUB): Grubhub has been gaining traction of late on the back of an improvement in products, delivery network and increasing partnerships with restaurants in the United States. Top and bottom line growth has started to accelerate after what appeared to be a pronounced slowdown. This quarter analysts are expecting earnings to jump 54% on a 39% rise in sales, a significant improvement from previous quarters. More recently, the company introduced gift cards and has been testing a new recommendation platform to capture greater market share. Nonetheless the space has become increasingly crowded with companies like Yelp (NYSE:YELP), Amazon (NASDAQ:AMZN), Uber, Postmates and now even Facebook (NASDAQ:FB).