Consumer Cyclical Stocks Outperform Earnings Estimates in Latest Quarter

Consumer cyclical stocks reported earnings last week, with 12 out of 17 beating estimates. Notable names include Tesla, General Motors, and Chipotle Mexican Grill. Earnings season is in focus, with more reports expected in the coming weeks.

Earnings season for consumer cyclical stocks is in full swing, with 12 out of 17 companies reporting positive results last week. The sector, which includes companies like Tesla, General Motors, and Chipotle Mexican Grill, has shown resilience despite the challenging economic climate. Here's a summary of the key findings:

Tesla (NASDAQ:TSLA)
- Adjusted profit: $0.40 per share, matching consensus estimates.
- Revenue: $22.49B, down 11.8% from last year but beating estimates.
- The company assured investors that plans for a lower-cost vehicle remain on track for the second half of 2025.

General Motors (NYSE:GM)
- Profit: $2.53 per share, above market expectations.
- The automaker acknowledged a $1.1B hit to its core profit due to tariffs and a 300 basis point erosion in EBIT margin.

Chipotle Mexican Grill (NYSE:CMG)
- Total revenue: 3% year-over-year increase, driven by new restaurant openings.
- Earnings: $0.33 per share, in line with expectations.

Domino's Pizza (NASDAQ:DPZ)
- Profit: $3.81 per share, down from $4.03 a year ago and 14 cents less than Wall Street expected.
- The pizza maker expects global retail sales growth to be generally in line with 2024.

Looking ahead, several notable consumer cyclical stocks are scheduled to report results in the coming weeks, including Starbucks (NASDAQ:SBUX), Booking.com (NASDAQ:BKNG), Royal Caribbean (NYSE:RCL), and eBay (NASDAQ:EBAY).

References:
[1] https://finance.yahoo.com/news/group-1-automotive-second-quarter-121620267.html
[2] https://seekingalpha.com/news/4472528-earnings-scoreboard-12-of-17-consumer-cyclical-stocks-beat-estimates-last-week
[3] https://finance.yahoo.com/news/3-monster-stocks-hold-next-220500595.html