Earnings have remained solid in the third-quarter. Apple AAPL , Facebook FB and Starbucks SBUX all beat expectations on the bottom line. Investors have concerns about each company, both for backwards looking reasons and forward looking reasons.
Apple’s unit sales and guidance were both disappointing. Management also said it will not report unit sales anymore. The stock didn’t react well to that. Meanwhile, let’s remember, it lifted prices on devices and reported a continually strong services revenue segment, and beat on earnings estimates.
Facebook’s rate of monetization on its crucial Instagram stories may not be incredibly speedy for the next year or so, and shares teetered after earnings. Facebook’s long-term outlook looks strong, and it too beat estiamtes on the bottom line.
Starbucks beat estimates on both top and bottom lines, partly because it grew U.S. sales at 4%, above consensus estimates of 2-3%, while China sales also grew. One of the keys for the U.s. segment was higher pricing. If a consumer company can drive strong sales growth after raising prices, that’s usually a good sign. Wage growth in the U.S. has also been strong, which ma have been a tailwind.
Elsewhere on TheStreet, Kraft-Heinz KHC , down almost 6% in pre-market trading, is the RealMoney stock of the day.
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