Lee Klaskow, a Senior Transport Analyst, analyzes UPS's positive earnings, highlighting strategic shifts that fuel cautious optimism in logistics. Michael Halen, Senior Restaurant Analyst, discusses Starbucks' recent sales decline and leadership changes under CEO Brian Nickel. Geetha Ranganathan, a US Media Analyst, explores the implications of Disney's leadership succession plans. Kiel Porter reports on safety issues at Rivian's plant, while John Butler examines the earnings landscape for AT&T and Verizon. Finally, Chris Gadomski shares insights on future advancements in nuclear reactor technology.
UPS reports a return to growth, indicating potential recovery through efficient operations and increased volumes of profitable packages.
Disney's succession planning highlights leadership transition challenges, with internal candidates under scrutiny amidst operational struggles and investor concerns.
Deep dives
UPS Earnings Growth Signals Recovery
UPS has reported a return to sales and profit growth, signaling a potential recovery for the shipping giant after nearly two years of declines. The company benefited from higher volumes of more profitable packages and stable labor costs. Analysts noted that earnings per share growth finally turned positive after seven quarters of downturns. There is optimism about future earnings as cost-saving measures and operational efficiencies start to improve margins further.
Starbucks Struggles and Leadership Changes
Starbucks has experienced a continued decline in sales for three consecutive quarters, prompting new CEO Brian Nickel to withdraw the company's guidance for 2025. Nickel is implementing significant management changes and seeking to enhance customer experience by simplifying operations and streamlining the menu. The decline in same-store sales has been attributed to factors such as decreased in-store traffic and excessive pricing compared to smaller competitors. Nickel aims to strengthen marketing efforts and regain the focus on customer relations to improve performance.
Tesla's Earnings Exceed Expectations
Tesla surpassed earnings expectations and forecasted a potential 30% growth in vehicle sales for the upcoming year, reflecting a rebound in demand for electric vehicles. Analysts highlighted substantial profit margin improvements, particularly when excluding sales credits to other automakers. CEO Elon Musk expressed confidence in achieving significant sales growth next year, despite lower deliveries earlier in the year. The introduction of the Cybertruck shows promising signs as it becomes gross margin positive, although overall sales remain significantly lower than other Tesla models.
Disney's Succession Planning Challenges
Disney's succession planning has become a pivotal topic amidst turmoil in leadership transitions, with the company announcing plans to appoint a new CEO in early 2026. Recent commitments include naming James Gorman, former Morgan Stanley CEO, as Chairman of the Board to guide the process. Investors are keenly observing the four main internal candidates for the CEO role and hoping for a decisive and effective transition. The timing of the new CEO's appointment has raised concerns, given the delays in addressing serious operational challenges faced by the company.
On this podcast: Lee Klaskow, Bloomberg Intelligence Senior Transport, Logistics and Shipping Analyst, discusses UPS earnings. Craig Trudell, Bloomberg Global Autos Editor, recaps Tesla earnings. Michael Halen, Bloomberg Intelligence Senior Restaurant and Foodservice Analyst, discusses Starbucks earnings. Geetha Ranganathan, Bloomberg Intelligence Analyst on US Media, talks about Disney’s succession plans. Kiel Porter, Bloomberg Industrials Reporter, discusses the Bloomberg Big Take story: “Cracked Skull, Broken Bones Show Rivian Plant's Danger.“ John Butler, Bloomberg Intelligence Senior Telecom Analyst, discusses AT&T and Verizon earnings. Chris Gadomski, BNEF Lead Nuclear Analyst, talks about nuclear reactor technology.
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