Earnings Scorecard: 12 out of 15 S&P 500 consumer discretionary firms beat EPS estimates this week

[Consumer Discretionary Apparel Stock Market Industry Sector Wall Street Buildings 3d Illustration]
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Earnings season gathered pace this week, with a busy stretch that saw 15 companies in the S&P 500’s consumer discretionary sector (XLY [https://seekingalpha.com/symbol/XLY]) report quarterly results.

Year to date, State Street Consumer Disc Sel Sect SPDR ETF (XLY [https://seekingalpha.com/symbol/XLY]) has fallen 0.6%, underperforming the broader S&P 500 index's nearly 6% gains over the same period.

The sector’s performance this quarter reflects [https://seekingalpha.com/news/4570804-consumer-discretionary-among-laggards-in-q1-amid-sector-weakness] persistent inflation concerns, rising Treasury yields, and escalating geopolitical tensions in the Middle East, which pushed oil prices above $100 per barrel. Higher energy costs weighed on household spending power and increased input and shipping costs, pressuring consumer-facing businesses.

In this week’s earnings recap, out of the 15 companies that reported, 12 surpassed profit estimates, two fell short of expectations, and one reported in line. On the revenue side, 12 companies exceeded estimates, while three missed.

On a year-over-year basis, 12 of 15 companies reported EPS growth, while 13 posted revenue gains.

BELOW ARE THE LATEST QUARTERLY REPORTS FROM FIVE NOTABLE COMPANIES IN THE CONSUMER DISCRETIONARY SECTOR THIS WEEK:

DOMINO'S PIZZA (DPZ [https://seekingalpha.com/symbol/DPZ]) reported [https://seekingalpha.com/news/4579850-dominos-pizza-falls-after-same-store-sales-miss-expectations]revenue was up 3.6% year over year to $1.15B for Q1, missing the consensus estimate by $10M. International stores saw growth of 4.0%, while U.S. stores generated 2.8% growth. Same-store sales were 1.5% higher at U.S. company-owned stores and 0.8% higher for franchised locations. While both those marks missed the consensus estimate of analysts, the pizza chain noted that Q1 was another quarter of positive order count and market share growth for Domino's in the U.S.

CHIPOTLE MEXICAN GRILL (CMG [https://seekingalpha.com/symbol/CMG]) posted [https://seekingalpha.com/news/4581964-chipotle-rallies-after-posting-a-surprise-positive-comp-for-q1] positive comparable sales growth in Q1. Total revenue was up 7.4% year over year to $3.1B. The increase was driven by new restaurant openings and a 0.5% increase in comparable restaurant sales due to higher transactions of 0.6%, partially offset by a 0.1% decrease in average check. The comparable sales growth mark was better than the consensus estimate of -0.9%.

STARBUCKS (SBUX [https://seekingalpha.com/symbol/SBUX]) in its second-quarter [https://seekingalpha.com/news/4580996-starbucks-rallies-after-us-comparable-sales-come-roaring-strong-back-in-fq2] earnings report, recorded its third straight quarter of positive comparable sales after a streak of seven quarters in negative territory. Global comparable store sales were up 6.2% to easily top the +3.7% consensus estimate, driven by a 3.8% increase in comparable transactions and a 2.3% increase in average ticket. U.S. comparable store sales were up 7.2% during the quarter, driven by a 4.3% gain in comparable transactions and a 2.7% increase in average ticket. The U.S. comparable sales tally topped the consensus expectation for a gain of 3.7%.

FORD MOTOR (F [https://seekingalpha.com/symbol/F]) posted [https://seekingalpha.com/news/4582022-ford-beats-q1-estimates-but-faces-sizeable-loss-for-its-ev-segment-this-year] better-than-expected first-quarter revenue and profit results, but that was eclipsed by a multi-billion-dollar loss in its EV segment and $1.9B in negative free cash flow.

AMAZON (AMZN [https://seekingalpha.com/symbol/AMZN]) beat [https://seekingalpha.com/news/4582654-what-analysts-are-saying-about-amazon-after-earnings]estimates in its Q1 results. AWS was a standout, with revenue up 28% to $37.6B, its fastest growth in 15 quarters, helping drive total company operating income to $23.9B. The main sticking point was heavy AI-related spending, which led to free cash flow falling sharply to $1.2B over the trailing 12 months as capex surged. For Q2, the company guided for $194B to $199B in sales and $20B to $24B in operating income.

For the upcoming week, Airbnb (ABNB [https://seekingalpha.com/symbol/ABNB]), McDonald's (MCD [https://seekingalpha.com/symbol/MCD]), and DoorDash (DASH [https://seekingalpha.com/symbol/DASH]) are among the key companies in the sector scheduled to report quarterly results.

CONSUMER DISCRETIONARY ETFS: (XLY [https://seekingalpha.com/symbol/XLY]), (VCR [https://seekingalpha.com/symbol/VCR]), (FXD [https://seekingalpha.com/symbol/FXD]), (FDIS [https://seekingalpha.com/symbol/FDIS]), (RSPD [https://seekingalpha.com/symbol/RSPD]), and (RXI [https://seekingalpha.com/symbol/RXI])

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