Key Takeaways
- Eli Lilly (LLY) reported a significant beat on Q3 earnings and revenue, driven by strong sales of its weight-loss and diabetes drugs, Zepbound and Mounjaro, leading to a substantial increase in its full-year guidance.
- Comcast (CMCSA), Bristol Myers Squibb (BMY), and Merck & Co (MRK) all surpassed analyst expectations for their third-quarter results, with several raising their full-year outlooks.
- Nissan (NSANY) delivered a somber forecast, projecting a substantial full-year operating loss of 275 billion Yen, highlighting ongoing challenges in the automotive sector.
- Brazil's FGV Inflation IGPM registered a deflationary trend in October, coming in lower than anticipated both month-over-month and year-over-year.
- A reported one-year trade truce between the US and China, following a meeting between leaders, provided a positive geopolitical note amidst mixed movements in major tech stocks.
Earnings season continues to unfold with a diverse set of corporate results, showcasing robust performance from pharmaceutical and telecom giants, while the automotive industry faces headwinds. Geopolitical developments, including a US-China trade truce, also influenced market sentiment.
Pharmaceutical Sector Shines with Strong Drug Sales
Pharmaceutical heavyweights Eli Lilly (LLY), Bristol Myers Squibb (BMY), and Merck & Co (MRK) delivered impressive third-quarter results, largely exceeding analyst expectations. Eli Lilly's revenue surged to $17.60 billion, significantly above the $16.07 billion estimate, with adjusted EPS reaching $7.02 against an estimate of $5.69. This performance was largely fueled by its blockbuster drugs, with Zepbound revenue hitting $3.59 billion and Mounjaro revenue reaching $6.52 billion, both surpassing estimates. Consequently, Eli Lilly raised its full-year adjusted EPS outlook to $23.00-$23.70 and revenue to $63.0 billion-$63.5 billion.
Bristol Myers Squibb (BMY) also reported a strong Q3, with adjusted EPS of $1.63 on revenue of $12.22 billion, both beating estimates of $1.51 and $11.81 billion, respectively. The company subsequently raised its full-year adjusted EPS guidance to $6.40-$6.60 and revenue outlook to approximately $47.5 billion-$48.0 billion. Similarly, Merck & Co (MRK) posted Q3 revenue of $17.276 billion and adjusted EPS of $2.58, both ahead of consensus. Merck slightly raised its full-year revenue and adjusted EPS forecasts.
Telecom and Consumer Goods Show Resilience
Comcast (CMCSA) reported a strong third quarter, with revenue of $31.198 billion surpassing the $30.702 million estimate, and adjusted EPS of $1.12 beating the $1.10 estimate. The company also showed better-than-expected performance in its domestic broadband segment, with a loss of 104,000 customers, less than the estimated 140,083 decline.
In the consumer goods sector, Hershey Co (HSY) and Kimberly-Clark (KMB) both delivered better-than-expected Q3 adjusted EPS. Hershey's adjusted EPS came in at $1.30 on net sales of $3.18 billion, exceeding estimates. The company also narrowed its full-year adjusted EPS growth outlook to -36% to -37% and raised its net sales growth forecast to +3%. Kimberly-Clark reported Q3 adjusted EPS of $1.82 against an estimate of $1.76, with net sales up 0.1% year-over-year to $4.15 billion.
Industrial and Healthcare Distributors Report Solid Quarters
L3Harris Technologies (LHX) announced Q3 revenue of $5.66 billion and adjusted EPS of $2.70, both exceeding analyst projections. The defense contractor also provided a full-year adjusted EPS outlook of $10.5-$10.7 and revenue of $22.0 billion. Cardinal Health (CAH) had a robust Q1 2025, with revenue of $64.01 billion and adjusted EPS of $2.55, significantly beating estimates. The company raised its full-year adjusted EPS guidance to $9.65-$9.85.
Trane Technologies (TT) reported Q3 revenue of $5.743 billion, slightly below estimates, but operating income of $1.165 billion exceeded expectations, with an operating margin of 20.3%.
Automotive Sector and Inflationary Trends
Nissan (NSANY) issued a stark warning, forecasting a full-year operating loss of 275 billion Yen, indicating significant challenges ahead for the automaker.
Meanwhile, Brazil's FGV Inflation IGPM for October showed a deflationary trend, with a month-over-month reading of -0.36% (versus an estimated -0.23%) and a year-over-year figure of 0.92% (below the 1.03% estimate). This suggests easing price pressures in the Brazilian economy.
Geopolitical and Tech Market Snapshot
In broader market news, former President Trump reportedly described his meeting with Chinese President Xi as "amazing," announcing a one-year trade truce between the US and China. This positive development comes as European bourses saw broad declines, while US equity futures were mixed. Individual tech giants experienced varied reactions post-earnings, with Meta Platforms (META) down 8.8%, Microsoft (MSFT) down 2.3%, and Alphabet (GOOGL) up 6.9%. NVIDIA (NVDA) CEO commented positively on the Trump-Xi meeting, looking forward to engagements with South Korean leadership.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.