Stock Movers Merck's Tariff Hit; Pepsi's Guidance; Chipotle's Sales Decline
Apr 24, 2025
Merck sees its shares rise despite cutting earnings forecasts and predicting a $200 million tariff hit. PepsiCo, however, struggles with a lower profit outlook due to trade policy and consumer sentiment challenges. Texas Instruments surprises with a positive growth forecast fueled by demand for industrial components. Meanwhile, Chipotle's sales decline marks a worrying trend, forcing them to lower their outlook amid potential tariff impacts, even as they plan to expand their restaurant openings.
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Merck's Tariff Impact Less Than Expected
- Merck anticipates a $200 million hit from tariffs mainly impacting its HPV vaccine sales in China.
- Despite a 40% share decline over 12 months, this tariff impact was less than expected, lifting pre-market share prices.
PepsiCo Cites Tariff Volatility
- PepsiCo cut its full-year profit outlook due to trade policy uncertainty and weaker consumer demand.
- They expect flat earnings in 2025 with only low single-digit organic revenue growth amid tariff volatility.
Texas Instruments Navigates Tariffs Well
- Texas Instruments forecasted better demand for industrial and automotive chips, driving pre-market gains near 9%.
- TI is relocating facilities to reduce tariff exposure and meet customer needs.