Starbucks Higher; Visa Slides; Humana Soars

On this episode of Stock Movers:
- Starbucks (SBUX) shares are higher this morning after the coffee chain reported net revenue for the third quarter that beat the average analyst estimate. The report also showed that comparable sales came in better-than-expected in China and North America, two of the company’s key markets.
- Mondelez (MDLZ) is under pressure this morning after it said unease around the economy drove a bigger-than-expected decline in North American sales in the second quarter. CEO Dirk Van de Put said customers are worried about their personal finances, employment outlook and inflation, and he doesn't expect a quick rebound in the US market.
- Hershey's (HSY) shares are lower after it lowered its full year profit guidance on much tariff costs than it had previously estimated. The company now sees full-year tariff costs to be $170 million to $180 million, up from its estimate of $15 million to $20 million in May, the company said in a statement Wednesday.
- Visa (V) shares are sliding after it reported third-quarter results that beat Wall Street estimates, but said it still expects earnings per share to increase by a percentage in the low teens and revenue to grow by low double digits, according to a presentation. Mizuho Securities analyst Dan Dolev said in a note to clients that Visa’s failure to lift the full-year outlook may be to blame for the stock drop.
- Humana (HUM) is soaring on news it raised its profit guidance for the year, with management saying medical costs were in line with expectations and the company benefitted from growth in its Medicare Advantage and pharmacy businesses.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg data. Let's take a look
at some stocks on the move today. I'm Nathan Hager,
joined by Bloomberg's Kritty Gupta, trying to keep up with
all the stocks moving off the back of earnings. Pretty

(00:25):
good morning.

Speaker 2 (00:26):
Good morning, Nathan. Let's kick it off with a caffeine
boost if we can, as we should watch every morning,
and if you're not drinking caramel lates, you absolutely should.
I think that's what's helping Starbucks' numbers this morning. Sbux
is the ticker you want to keep an eye on.
Hire by four and a half percent this morning, training
about ninety seven dollars and change. Pretty big move for
Starbucks after they were reported better than expected net revenue. Now, look,

(00:50):
these are still not strong numbers necessarily. The cop sales
for the third quarter is minus two percent. The estimate
was minus one and a half percent. But the thinking
here is that the net revenue is still coming in higher.
The estimate there was about nine point three billion. They
came in with nine point five billion, So one of
the stories where you shooting for a B plus, you
get a B minus and that's good enough. Okay, I

(01:10):
think is the way to think about that. Star Power
shares exactly SBUX higher by four and a half percent. Well,
when I think of coffee, I think about what goes
good with it, and maybe oreos. Nathan, Yeah, you can
dip an oreo and a cup of coffee.

Speaker 1 (01:23):
Why not? Sure?

Speaker 2 (01:24):
Why not the little sugar boost in the morning. It
takes us, Nicholas nicely to the Oreo maker. Mandalze MDLZ
also under pressure this morning, down about one percent, trading
just shy of sixty nine dollars a share. Now, I
thought this was interesting because they're basically saying that my
habit of stress eating is not really how the rest
of the country operates. They're saying unease around the economy

(01:45):
drove a bigger than expected decline in North American sales
in the second quarter. I would think uneies around the
economy would include more snacking. I guess not for Mandalize.
They are worried though about They're saying that consumer sentiment
is eating into some of their sales numbers, not just
here in the States, but of course around the world,
and those price increases that they had put on earlier

(02:06):
in the year are certainly not offsetting that in the
way that they were hoping and sticking with that unease
in the economy, we got to talk about Hershey's now
that we're on the snacking train anyway, hershey shares are
also down under pressure for a similar reason. They're talking
about tariff costs of at least one hundred and seventy
million dollars to one hundred and eighty million dollars. That
is up from its estimate of fifteen to twenty million.

(02:28):
So a giant hit comes to the tariff impact and
significantly larger than what they expected. Till hsy is your
ticker for Hershey's down about one point two percent, training
at one hundred and eighty four dollars a share. So
lots going on there in terms of the snacking place,
and certainly in the caramelante space as well. But let's
talk a little bit about credit cards and insurance. I

(02:49):
feel like that's the natural transition. Sure shares are in
the spotlight this morning. V is the ticker now they
are sliding their fiscal year profit outlook looking unchanged at
the moment, but they are expecting earnings to get a
little bit better. Basically, this is a little bit of
a wampwomp result when it comes out from Visa down
about two percent this morning, trading at three hundred and

(03:10):
forty four dollars a share. Let's stick with Humana because
that's the next one that I want to really bring
to everyone's attention. This morning, hum soaring hire by seven
and a half percent, trading at two hundred and fifty
dollars a share. This is not really a move that
we traditionally see from the health insurance and certainly not
from Humana. But not only did their revenue top their estimates,
they also raise their full year outlooks, though some good

(03:32):
news for the Humana stock.

Speaker 1 (03:36):
The Stock Movers podcast from Bloomberg Radio. Check back with
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