Estée Lauder, Yum! Brands, Paramount earnings in focus

Yahoo Finance's Alexandra Semenova breaks down the latest earnings from major brands.

Video Transcript

- Joining us now is Yahoo Finance's Alexandra Semenova. Alex, what are the details in this latest earnings spree?

ALEXANDRA SEMENOVA: Well, Jared, all eyes are on the Federal Reserve today. But we are still in the throes of earnings season, with a lot of headliners this morning. One of them is Estee Lauder. Shares were down about 6% at last glance after the company indicated that it wouldn't see a return to growth until 2023. Estee Lauder slashed its full-year forecast, blaming lockdowns in China and also saying that some retailers are taking its cosmetics and perfumes off of their shelves amid worries of an economic slowdown.

Notable also that this announcement comes ahead of a crucial holiday season for them. The company now expects net sales for 2023 to decrease to 6% to 8% compared to its prior forecast of growth of 3% to 5%. And like its peers in the consumer discretionary sector, such as Nike and Levi's, it's also citing currency headwinds as a stronger dollar eats into its international profits.

Now, makeup demand might be slowing down, but people are still lining up to KFC and Taco Bell. Yum Brands missed estimates on earnings per share, also citing currency headwinds and a loss in profits from its KFC exit from Russia. But it did report rising sales across its fast food chains, even as fast food restaurants are raising prices to keep up with rising commodity and labor costs. People are still flocking to them, opting for more value-oriented options. We saw that with McDonald's last week as they shy away from more expensive dine out options amid inflation.

And finally, Paramount Global is also a mover today. Shares were down as much as 10% this morning after the company missed Wall Street estimates on third quarter earnings. Paramount's profit hit was the result of larger investments in content to boost its business, while weakness in advertising revenue also weighed on the quarter. The company did cite growth in its global streaming services. But that wasn't enough to appease Wall Street.

- Interesting mix of companies there. And I got to tell you, I can testify to those higher makeup prices. But I still got to be a buyer. So thank you for that report, Alex Semenova.