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GM outlook, Coca-Cola Q1 beat, UPS layoffs: Trending Tickers

In This Article:

Brad Smith and Madison Mills take a closer look at some of today's trending tickers on Morning Brief.

General Motors (GM) pulls its 2025 earnings guidance and pauses share buybacks. US President Trump is expected to soften auto tariffs.

Coca-Cola (KO) beats first quarter estimates and maintains its 2025 guidance, saying it expects tariff impacts to be "manageable."

UPS (UPS) is expected to cut 20,000 jobs this year due to lower volumes.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

00:00 Speaker A

Now time for some of today's trending tickers. We are watching GM, Coca-Cola and UPS. First up, General Motors pulling its 2025 earnings guidance and pausing share buybacks amid tariff uncertainty. This as President Trump is expected to soften the impact of his auto tariffs today. The Wall Street Journal reporting that the deal will prevent duties on foreign-made cars from stacking on top of other tariffs that he has imposed the automaker is delaying its earnings conference call until Thursday here. Just one additional contextual note here that we heard from Secretary Benson this morning, reminding and reiterating that President Trump has had meetings with both domestic and foreign and and foreign auto producers and saying that he's committed to bringing back auto production to the US. So trying to give automakers a path to do that quickly, but that creating uncertainty in the near term for some of the guidance and outlook for auto manufacturers right now.

01:44 Speaker B

And it's interesting when you take a look at the data, which is all we have right now for GM because of the delay of that call, uh the financial results did largely beat expectations, but some potentially worrisome signs ahead here specifically regarding GM projecting an adjusted pre-tax profit in a range of 13 to 15.7 billion for 2025. The midpoint of that would be about on par with last years and obviously you want to see growth, you don't want to see continuation of last year's results. Also, these results do capture that first quarter pull forward behavior from consumers buying some autos in anticipation of the impact of those tariffs. So how much of this is a potential lift ahead of a potential downturn from tariff policy? Hopefully we'll get some clarity about that when that call is scheduled moving forward here. Next up, let's talk about Coca-Cola topping first quarter estimates boosted by price hikes and strong demand, the beverage maker maintaining its 2025 guidance saying it expects tariff impacts to be manageable. You got manageable. You've got the shares down about three quarters of a percent here. What I find fascinating about Coca-Cola here is that we did initially see a pop in the stock price after these earnings results here and now you see a move to the downside here. Interesting to see too that the company called Trump's tariffs manageable. Obviously, that is the line when it comes to companies being able to talk about their ability to withstand the impact of these tariffs. In in terms of the math, your net sales down a little bit, your overyear organic sales growth up just to touch and earnings per share also up just to touch.

04:21 Speaker A

Yeah, the company did acknowledge some pressure in key developed markets. The chairman and CEO James Quincy saying that the power of their global footprint though allowed them to successfully navigate a complex external environment and additionally here. Uh they also did note within that kind of volume sales mix that we're continuing to track. Uh unit case volume actually grew 2% here. Uh but overall, this is going to be a continuing kind of story to watch, especially as it relates to where consumers are trading down or trading in and perhaps buying in bulk uh in some cases here for Coca-Cola and what that means as well for some of their larger distribution partners also. Uh and finally here, let's talk a little UPS. UPS expecting to cut 20,000 jobs this year in response to lower volumes. The shipping giant not providing an update to its full year outlook of amid economic uncertainty. This is despite topping first quarter results. Shares of UPS, you're seeing them higher here, at least early in trading by about half a percent. We've been continuing to track this one, of course, closely over the course of this year as well given where some of the consumer mindset has continued to navigate over the course of this year to date. They are still down by about 21%.

06:23 Speaker B

And critically not providing any updates to its previously issued consolidated full-year outlook given the what else, uncertainty. Uh also interesting to see that earnings were up, but sales were down and UPS talking specifically about leveraging their integrated network and trade expertise moving forward amid that backdrop of uncertainty. And you can scan the QR code below to track the best and worst performing stocks with Yahoo finances's trending tickers page.