The Top Earnings Reports for Wednesday – BA, CAT, CMG

Earnings season has been a mixed bag so far.

While many other earnings reports have been solid overall, Tesla, Boeing, and Caterpillar managed to stink things up pretty badly.

Boeing (BA)

Boeing reported a 50% slump in its third quarter, as the company struggles with two crashes involving its 737 Max aircraft.  And, according to CNBC, the company is still sticking to its optimistic forecast for when the 737 will take to the skies again.  

The company noted that it assumes “regulatory approval of the 737 MAX return to service begins in the fourth quarter of 2019.”  Honestly, I wouldn’t count on that, in my opinion. With recent disclosures, it could take at least another quarter until the 737 returns.

Third quarter EPS came in at $1.45, which was well below expectations for $2.06.  Revenue of $19.98 billion did manage to beat estimates for $19.67 billion. However, the company did not provide updates to its full year forecast, which was suspended in 2018.  

Caterpillar (CAT)

Caterpillar is having a bad day after cutting its full year outlook, and posting horrendous third quarter earnings, which it’s blaming on “global economic uncertainty” and reduced inventories, as noted by CNBC.  The company earned $2.66 a share, as compared to estimates for $2.88.  Revenue of $12.758 billion, which was below expectations of $13.572 billion.

CAT made things even worse after cutting its full year EPS guidance to a range of $10.59 and $11.09 from a range of $12.06 and $13.06.  Analysts were looking for $11.70. It also expects for fourth quarter demand to remain flat.  

Chipotle Mexican Grill (CMG)

Chipotle Mexican Grill (CMG) beat estimates.

Adjusted EPS of $3.82  beat estimates for $3.21.  Revenue of $1.4 billion beat estimates for $1.38 billion, as same-store sales jumped 11% as compared to 9.3% estimates.

“We’re pleased with our overall results in the quarter, which reflects further progress on our key strategic initiatives to provide a great guest experience and position Chipotle to deliver above industry growth for many years to come,” CEO Brian Niccol said, as quoted by Yahoo Finance. “These strong results reinforce that running great restaurants with a purpose of cultivating a better world is a compelling proposition.”