Good morning investors!

Every weekend we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover.

Earnings season is winding down but three of the stocks we cover reported quarterly results this week — here is the list of companies we focused on:

• Eli Lilly, Disney, Shopify, and The Trade Desk

Let’s dive in.

Eli Lilly (LLY)

Eli Lilly reported outstanding second-quarter earnings and revenue, surpassing expectations.

The company achieved a net income of $2.97 billion, or $3.28 per share, a significant increase from $1.76 billion, or $1.95 per share, a year earlier. Adjusted earnings were $3.92 per share. Revenue for the quarter was $11.30 billion, a 36% increase from the previous year.

The growth was primarily driven by strong sales of its diabetes drug Mounjaro and weight loss injection Zepbound, which generated $3.09 billion and $1.24 billion in revenue, respectively.

Due to this strong performance, Eli Lilly raised its full-year revenue forecast by $3 billion, now expecting between $45.4 billion and $46.6 billion. The company also increased its full-year adjusted earnings guidance to a range of $16.10 to $16.60 per share, up from the previous range of $13.50 to $14 per share.

LLY shares +5.5% so far this week.

The Walt Disney Company (DIS)

Disney reported strong fiscal third-quarter earnings, surpassing analyst expectations as its streaming businesses turned a profit sooner than anticipated.

Overall revenue rose 4% to $23.155 billion, with earnings of $1.29 per share beating the forecasted $1.19 per share. Operating income increased by 19% to $4.225 billion, driven by the entertainment segment, particularly streaming.

For the first time, Disney's combined streaming services—Disney+, Hulu, and ESPN+—posted an operating profit of $47 million, compared to a $512 million loss in the same quarter last year. However, without ESPN+, the streaming unit reported a slight loss of $19 million. Disney+ Core subscribers grew by 1% to 118.3 million, and Hulu subscribers increased by 2% to 51.1 million.

Revenue for the entertainment segment increased by 4%, primarily due to subscription growth and price hikes for Disney+ Core, though traditional TV network revenue declined by 7%.

Disney raised its full year EPS outlook. It now expects EPS to grow 30% year-over-year, compared with 25% earlier. The company also removed its cash flow outlook from the guidance. 

DIS shares are -3.9% so far this week.

Shopify (SHOP)

Shopify's shares surged after the company exceeded expectations for the second quarter.

Shopify reported a net income of $171 million, or $0.26 per share, surpassing the expected $0.20 per share. Revenue for the quarter reached $2.05 billion, a 21% increase from the previous year and above the estimated $2.02 billion.

Shopify reported strong growth in key metrics, with a 22% increase in gross merchandise volume, which totaled $67.2 billion, exceeding the $65.8 billion expected. The company also saw monthly recurring revenue reaching $169 million, a 22% year-over-year increase and above the expected $158.9 million.

Merchant Solutions revenue grew 19% year-over-year to $1.48 billion, matching expectations. Subscription revenue surged 27% to $563 million, beating the estimate of $533.2 million.

The gross payment volume was $41.10 billion, up 30% year-over-year and exceeding the estimate of $39.95 billion. The adjusted gross margin was 51%, slightly below the consensus of 51.1% but up from 50% the previous year.

For the third quarter, Shopify anticipates revenue growth in the low-to-mid-20s percentage range year over year.

SHOP shares are +26.2% so far this week.

The Trade Desk (TTD)

The Trade Desk exceeded analysts' expectations for the second quarter.

The company reported a 25.9% year-over-year revenue increase to $584.6 million. Profit rose to $0.39 per share, up from $0.07 per share in the same period last year.

EBITDA increased by 34% to $242 million, surpassing the expected $226 million.

The company provided optimistic guidance for next quarter's revenue, projecting $618 million at the midpoint, which is 2.1% above analysts' estimates.

TTD shares are +12.3% so far this week.

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Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.