Tour de earnings

🥤 PepsiCo sank 4.89% today after consumer demand weakened last quarter, pushing net sales lower. The consumer goods giant also cut its full-year earnings forecast, noting that its core earnings for 2025 will be flat, rather than climb as expected. President Trump’s tariffs will hit the company particularly hard, given it makes most of the concentrate for its sodas in Ireland, while an aluminum tariff will pile on more costs.

• EPS: $1.48 adjusted, compared to the $1.49 expected
• Revenue: $17.92 billion, versus the $17.77 billion expected

🧸 Hasbro had its best day in five years, climbing 14.58% after the toy company reassured investors it will weather the tariff storm. It helps that roughly half of the company’s US sales are based domestically or from licensing other US companies. Nerds are also boosting the company: Revenue for physical and digital Magic: The Gathering cards jumped over 45% last quarter. The cherry on top was today’s announcement that it has renewed its licensing deal with Disney, allowing Hasbro to keep selling hit Marvel and Star Wars toys.

• EPS: $1.04 per share, beating expectations of $0.65
• Revenue: $887.1 million, beating forecasts of $769.2 million

💉 Merck rose 1.40% today after beating earnings expectations. The problem is that the pharma giant expects a $200 million hit to its bottom line due to—you guessed it—tariffs. That’s mostly from the administration's current tariffs on China, and doesn’t count the potential additional pharmaceutical levies Trump has indicated he’s planning.—LB

• EPS: $2.22 adjusted, compared to the $2.14 expected
• Revenue: $15.53 billion, compared to forecasts of $15.31 billion