Here’s your Cheat Sheet to three important earnings releases from this week:
1) YUM! Brands Inc. (NYSE:YUM): Stock up over 3.25% after hours as the company reported its results for the second quarter today. Net income for YUM rose to $316 million (65 cents per share) vs. $286 million (59 cents per share) in the same quarter a year earlier, a rise of 10.5% from last year. Revenues for the fast food operator rose 9.4% to $2.82 billion from the year earlier quarter. The company reported adjusted net income of 66 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. Estimates ranged from 58 cents per share to 63 cents per share. It beat the average revenue estimate of $2.7 billion.
CEO David Novak commented, “I’m pleased to report we are raising our full year EPS growth forecast to at least 12% based on the continued strength of our international businesses. We delivered EPS growth of 13% in the second quarter as strong performance in China and other emerging markets, combined with the benefit of a lower tax rate, offset a very disappointing quarter in the U.S..”
Competitors to Watch: McDonald’s Corporation (NYSE:MCD), Wendy’s Arby’s Group Inc. (NYSE:WEN), Papa John’s Int’l, Inc. (NASDAQ:PZZA), Domino’s Pizza, Inc. (NYSE:DPZ), Chipotle Mexican Grill, Inc. (NYSE:CMG), Starbucks Corporation (NASDAQ:SBUX), and Sonic Corporation (NASDAQ:SONC).
2) Capital One Financial (NYSE:COF): The financial services company, which markets a variety of financial products and services through its banking and non-banking subsidiaries, reported its second quarter earnings today. Net income for Capital One Financial Corporation rose to $911 million ($1.97 per share) vs. $608 million ($1.33 per share) in the same quarter a year earlier. This marks a rise of 49.8% from the year earlier quarter. Revenues for COF in non-interest income rose to $857 million. The company beat the mean analyst estimate of $1.54 per share. Estimates ranged from $1.29 per share to $1.96 per share. COF stock is down -.02% in after hours trades.
CEO Richard D. Fairbank noted, “Our second quarter performance demonstrates that Capital One remains well positioned to continue to deliver attractive and sustainable results, including loan growth, deposit growth, strong returns and robust capital generation. Recently we announced our definitive agreement to acquire ING Direct. This is a game-changing transaction that generates attractive financial results immediately, as well as compelling value creation over time. ING Direct has built a very special franchise – bringing great value and exceptional service to its customers – and we’re committed to continuing that.”
Competitors to Watch: American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Northern Trust Corporation (NASDAQ:NTRS), Wells Fargo & Company (NYSE:WFC), and HSBC Holdings plc (NYSE:HBC).
3) Marriot International Inc. (NYSE:MAR): The company, which operates and franchises hotels and related lodging facilities throughout the world, reported net income for the second quarter that rose to $135 million (37 cents per share) vs. $119 million (31 cents per share) in the same quarter a year earlier. This marks a rise of 13.4% from the year earlier quarter. Revenues also rose 7% to $2.97 billion from the year earlier quarter. MAR reported in line with the mean analyst estimate of 37 cents per share. It fell short of the average revenue estimate of $3.02 billion.
CEO J.W. Marriott, Jr. commented, “Around the world, we’ve never been more excited about our opportunities. Now in 71 countries, the Marriott International brand portfolio, already the broadest in the industry, is growing rapidly. We expect to add over 200 hotels to our system in 2011, leveraging the hospitality and local one know-how of our associates with our global size, systems, and guest loyalty programs. Emerging markets provide especially attractive opportunities. In the past five years, we have increased our hotel distribution in Brazil, Russia, India and China at a 12 percent compound annual growth rate while tripling our development pipeline in those markets.”