Raphael Stevens

Delta reported record revenue for the second quarter, but its net income fell 30%.
The carrier reiterated its full-year adjusted earnings forecast of between $6 and $7 a share.
Airlines are facing higher costs and increased industry capacity that has driven down fares compared with last year.

Delta Air Lines on Thursday forecast record revenue for the third quarter thanks to booming summer travel demand, but its projection fell short of analysts’ estimates as carriers discounted fares after expanding flights.
In the current quarter, Delta expects sales to rise no more than 4%, below the 5.8% growth analysts polled by LSEG estimated, and it forecast adjusted earnings per share of $1.70 to $2 a share, short of the $2.05 a share analysts estimated.

Shares of Delta fell about 9% in premarket trading. Other U.S. airlines were also trading lower.
The Atlanta-based carrier on Thursday kicked off an airline earnings season marked by packed planes but profits under pressure as costs rise and increased capacity weighs on fares. The Transportation Security Administration said it screened more than 3 million people for the first time on Sunday at U.S. airports.
Delta is a standout in the U.S. airline industry as the most profitable carrier, and Thursday’s report is a sign that competitors, particularly those focused on the oversupplied U.S. air travel market, could struggle this summer.
Rival United Airlines, which is scheduled to report results next Wednesday is trying to catch up to Delta’s profitability, and both carriers have been racing to add more premium seats that fetch more revenue from consumers. Analysts have the most buy ratings on Delta and United compared with other U.S. airlines.
Here’s how Delta performed in the second quarter, compared with Wall Street expectations based on consensus estimates from LSEG:

Adjusted earnings per share: $2.36 vs. $2.36 expected
Adjusted revenue: $15.41 billion vs. $15.45 billion expected

For the three months ended June 30, Delta brought in adjusted revenue of $15.4 billion, up 5.4% from last year and shy of Wall Street estimates. Net income dropped almost 30% from a year ago to $1.31 billion, or $2.01 a share, with operating expenses up 10% from last year. Adjusting for one-time items, Delta reported earnings of $1.53 billion, or $2.36 a share, in line with analysts’ estimates.
“The second quarter was a really strong performance,” CEO Ed Bastian said in an interview. “What you see happening is the impact in the domestic marketplace to the lower fare discounting that’s been going on this quarter.”

Airfare in June was 5.1% lower than a year earlier and 5.7% lower than the month prior, according to Thursday’s latest read on consumer prices, which showed easing inflation.
Bastian said lower industry capacity in the U.S. toward the end of the summer will better match up with demand. Delta said that corporate travel continues to increase and that most customers expect to maintain or grow their corporate travel spending this quarter and after.
The carrier expects to grow its flying capacity 5% to 6% in the third quarter compared with last year, a slower clip than the 8% it expanded in the second quarter. Bastian told CNBC that he expects Delta’s unit revenues to turn positive over last year in September.
Revenue from international travel has been strong since the pandemic waned, though airlines have expanded schedules, meaning more competition for customers. Unit revenue for trans-Atlantic flights will take a 1-percentage point hit from the Summer Olympics in Paris, Delta said. The impact is equal to about $100 million from June through August, Bastian told CNBC. The airline has more capacity to the French capital than rivals through its partnership with Air France.
Delta reported growth in premium tickets, like those for first class, jumped 10% in the second quarter to $5.6 billion, while revenue from coach tickets rose 0.3% to about $6.7 billion. Its lucrative American Express credit card deal brought in $1.9 billion, up about 9% from last year.
Bastian said that Delta is “fairly well insulated” from industry overcapacity because it draws so much of its revenue from premium seats and other sources rather than standard coach tickets.
Delta reiterated its full-year earnings forecast of $6 to $7 a share and said it still expects to generate free cash flow of as much as $4 billion.

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PepsiCo missed Wall Street’s estimates for its second-quarter revenue as its three North American business units reporting declining volume.
The company also gave a more cautious outlook for its full-year sales.
However, Pepsi beat earnings estimates for the quarter.

Pepsi bottles with new and previous logos are seen at the grocery store in Las Vegas, United States on November 17, 2023.
Jakub Porzycki | Nurphoto | Getty Images

PepsiCo reported mixed quarterly results Thursday, hurt by declining demand in North America for its drinks and snacks.
The company also narrowed its revenue outlook for the full year. Pepsi now expects organic revenue growth of approximately 4%, a more cautious outlook than its previous forecast of at least 4%. The company reiterated its guidance for core constant currency earnings growth of at least 8%.

“When we’re saying at least 4[%], we were talking more about around 5% in our minds,” CEO Ramon Laguarta told analysts on the company’s conference call. “Now we’re talking around 4 … it’s related specifically to the consumer in the U.S.”
Shares of the company fell more than 2% in premarket trading.
Here’s what PepsiCo reported for the quarter ending June 15 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $2.28 adjusted vs. $2.16 expected
Revenue: $22.5 billion vs. $22.57 billion expected

Pepsi posted second-quarter net income attributable to the company of $3.08 billion, or $2.23 per share, up from $2.75 billion, or $1.99 per share, a year earlier.
Excluding items, the company earned $2.28 per share.

Net sales rose nearly 1% to $22.5 billion. The company’s organic revenue, which excludes acquisitions, divestitures and currency changes, increased 1.9% for the quarter, fueled by Pepsi’s international business.
But the company struggled in its home market, hurt by product recalls and shrinking demand for its products.
Executive said in prepared remarks that consumers have become more value conscious. After several years of price increases, shoppers are pushing back by buying fewer bags of chips or switching to cheaper private-label options. Previously, Pepsi’s executives had said that low-income consumers have been struggling the most, but Laguarta said on Thursday’s call that shoppers across all income levels are changing their shopping behavior.
Frito-Lay North America’s volume declined 4%, while Pepsi’s North American beverage unit saw volume shrink 3%. The metric strips out pricing and currency changes to reflect demand.
Executives said volume for Pepsi’s North American drinks has improved sequentially, signaling that its attempts to lure back shoppers have begun working. The company is leaning on higher-margin packaging and products along with in-store promotions for its biggest brands to attract thrifty consumers, particularly for Frito-Lay brands, which include Cheetos and Doritos.
“We have green shoots with some of the activities we’ve been executing, and July 4 has been very strong for us,” Laguarta said.
Quaker Foods North America saw its volume fall 17% in the quarter as the division continues to deal with fallout related to recalls for potential salmonella contamination issued in December and January. Pepsi anticipates the segment’s volume will improve in the second half of the year. More

The Summer Olympics in Paris are the first games that will take place since legal gambling became widespread in the U.S.
Sportsbooks and gambling operations like market leaders FanDuel and DraftKings are preparing for increased betting on the games during what is typically a slow season for sports gambling in the U.S.
Basketball, soccer and tennis events are expected to see the largest volume of betting, but the sports that users can wager on will depend on where they live.

The Olympic Rings being placed in front of the Eiffel Tower in celebration of the French capital won the hosting right for the 2024 Summer Olympics.
Sopa Images | Lightrocket | Getty Images

Sportsbooks and daily fantasy operators are preparing for a Summer Olympics bump.
The games in Paris, set to start July 26, will be the first to take place since legal gambling became widespread in the U.S. The gaming industry expects an increase in wagering from the previous Summer Games in Tokyo, particularly for sports like men’s and women’s basketball, soccer and tennis.

“The Olympics and gambling, for decades, have looked at each other from afar. This year we’ll see them meld together,” said Max Bichsel, North America executive vice president at Gambling.com Group.
These Olympic Games come at an opportune time for sportsbooks, during the offseasons of high-volume betting leagues like the NFL and NBA. But it remains to be seen whether they move the needle for gambling operators.
The effect could be more muted for giants FanDuel and DraftKings, which together hold about 80% of the U.S. online gambling market share, than for smaller players.
“If you want to look at this from an annual perspective for a company like DraftKings or FanDuel, it’s still going to have a relatively minor impact,” said Jordan Bender, a senior equity analyst at Citizens JMP. “Obviously positive, but it’s not going to be as big as we might think and a lot of it is going to be largely dependent on viewership.”
A representative of FanDuel, which is owned by Flutter, said the Olympics likely won’t move the needle much for the sportsbook. DraftKings didn’t respond to a request for comment.

Even so, the expected rise in Olympics gambling underscores just how much the market has boomed in recent years.

Gambling growth

More than 30 states now allow some form of sports wagering, and many of them permit mobile and online betting, a dramatic increase from the last Summer Olympics.
The Tokyo Olympics came just a few years after the Supreme Court ruling that paved the way for legal betting across the U.S. In 2021, 97 million American adults were able to place a bet, compared with the 164 million American adults that will be able to wager this year, according to the American Gaming Association.
“Sports bettors are looking for something to bet on and incremental events are going to help,” Bender said. “The hard-core gambler, someone betting week in and week out on the NFL, NBA, NHL … that’s where a lot of the money is still going to be made.”
Still, the Olympics may not cause the betting surge seen with other sports in the U.S. Some state regulations may prevent betting on many events, and users may only be able to wager on medal competitions.
Viewership for the Olympics in the U.S. has suffered in recent years, particularly due to the difficult time difference in Tokyo in 2021 and Beijing in 2022 (the home to the Winter Games), as well as the absence of fans during the pandemic.
U.S. bettors will also face a time zone issue this year. While Paris’s time zone — six hours ahead of Eastern Time — presents fewer difficulties for Americans than Tokyo’s 13-hour gap did in 2021, prime-time events won’t be live this year.
Prime-time replays will air on the NBC broadcast network, and the entirety of the Olympics will be available on NBCUniversal’s Peacock, the first time there will be a significant streaming presence for the games.
Sportsbooks will be keen to see if that access improves betting interest.

Prepping for a summer surge

Tokyo, Japan, Sunday, July 25, 2021 – Mens Basketball, USA vs. France at Saitama Super Arena.
Robert Gauthier | Los Angeles Times | Getty Images

Still, many in the industry consider the Olympics an opportunity to increase engagement and betting in the typically slow summer months.
The roughly two weeks of competition in Paris are a boon for betting operators because they come during what is typically a lull in U.S. sports. Many leagues, including the NFL, NBA and NHL, are in the offseason.
The Olympics taking place in the summer could also reduce competition for viewers.
Brandon Friedman, vice president of operations at PrizePicks, a daily fantasy operator which allows users to make entry fees on competitions but is not considered gambling under federal common law, said the company offered Olympic events in Tokyo and Beijing and learned that users prefer summer competitions.
“As a result, we are leaning into the Paris 2024 Olympics with a wider offering for our members to enjoy than ever before,” Friedman said.
The picturesque Paris backdrop, and the ability for U.S. viewers to watch many of the competitions live during the daytime, also are expected to drive engagement.
“Beach volleyball in the foreground of the Eiffel Tower and Equestrian in the Gardens at Versailles will undoubtedly be the most spectacular venues in recent years,” said Bichsel.
The sports included in the Summer Olympics help, too. Many operators, including FanDuel and Rush Street Interactive’s sportsbooks like BetRivers, expect basketball, tennis and soccer to be the top sports for betting. He also noted the recent rise in the popularity of women’s sports will likely carry over to the Olympics.
Basketball wagers made up about half of FanDuel’s betting handle at the Tokyo Olympics. The company expects the emphasis on basketball to continue this year, a FanDuel representative said.
Plus, patriotism that fuels the Olympics fandom will play a factor in betting.
“Patriotism is No. 1 in the Olympics, and bettors love to back their country’s heroes no matter the event,” said Tim Whitehead, head of sportsbook at BetRivers, which is operated by Rush Street.
That may spill into betting on other countries, too.
“In the U.S., you see a melting pot of allegiances like where people not only support the U.S. but also have allegiances to their heritage in countries like Italy and Korea to Croatia and Brazil,” said Bichsel. “So., some sportsbooks, depending on the states and demographics, will respond differently to the Olympics and international games in general. For example, you might see an influx in bet volume from New York and New Jersey if an Eastern European country or Italy is playing.”
— CNBC’s Jessica Golden contributed to this article.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.

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Pfizer said it will continue to develop the once-daily version of its weight loss pill, danuglipron, after it saw “encouraging” data in an early-stage trial.
The company plans to conduct studies in the second half of the year evaluating multiple doses of the drug. 
The pharmaceutical giant in December discontinued a twice-daily version of danuglipron after patients had trouble tolerating the drug in a mid-stage trial.

Sopa Images | Lightrocket | Getty Images

Pfizer on Thursday said it will move forward with a once-daily version of its weight loss pill, danuglipron, after it saw “encouraging” data in an ongoing early-stage study.
The company evaluated several once-daily formulations of the drug and identified one with “the most favorable profile” in terms of safety and how the body reacts to the drug.

Pfizer said it plans to conduct more early-stage trials in the second half of the year to identify the ideal dose of the drug, with results expected in the first quarter of next year, a spokesperson told CNBC. The company said those trials will “inform the registration enabling studies,” which are used in applications for regulatory approval.
Results are expected in the first quarter of next year, a spokesperson told CNBC.
Danuglipron “has demonstrated good efficacy in a twice-daily formulation, and we believe a once-daily formulation has the potential to have a competitive profile in the oral GLP-1 space,” outgoing Pfizer Chief Scientific Officer Dr. Mikael Dolsten said in a release. Notably, the company did not observe any liver safety issues in patients who received once-daily formulations of the drug.
Pfizer is one of several drugmakers racing to win a slice of the market for a highly popular class of weight loss and diabetes drugs called GLP-1 agonists. Some analysts expect the industry to be worth roughly $100 billion by the end of the decade. 
But Pfizer has so far struggled to break into the market.

The pharmaceutical giant in December discontinued a twice-daily version of danuglipron after patients had trouble tolerating the drug in a mid-stage study. At the time, Pfizer said early study data on the once-daily version would “inform a path forward.” 
But investors have been pessimistic about the company’s potential in the GLP-1 space ever since it scrapped a different once-daily pill in June 2023 due to elevated liver enzymes in patients who received the treatment. Those were among a string of setbacks Pfizer faced last year on top of the rapid decline of its Covid business, which battered its stock. 
Still, Pfizer has other experimental obesity drugs in early stages of development. The company has not disclosed how those treatments will work. 
“Obesity is a key therapeutic area for Pfizer, and the company has a robust pipeline of three clinical and several pre-clinical candidates,” Dolsten said in the release.
Pfizer also believes GLP-1s are only “scratching the surface of what we will see in obesity,” CEO Albert Bourla said during a conference in June. 
Pfizer’s danuglipron is a GLP-1 that promotes weight loss in the same way as Novo Nordisk’s injection Wegovy and diabetes treatment Ozempic. The drugs mimic a single hormone produced in the gut called GLP-1, which signals to the brain when a person is full.
Injections from Novo Nordisk and Eli Lilly have soared in demand over the last year despite their hefty price tags and limited insurance coverage. 
The pair – along with Pfizer and other drugmakers – have been racing to develop oral versions that are more convenient for patients to take and easier to manufacture, which could help alleviate supply shortages in the U.S. 
Pfizer has previously said it could acquire or partner with a smaller obesity drugmaker. 
Bourla told reporters at a conference in January that it was unlikely the company would buy an obesity treatment in later-stage development, especially as the company focuses on cutting costs. 
But he said Pfizer was looking for potential licensing deals or earlier-stage weight loss drugs. 
Pfizer’s update on danuglipron comes days after the company said it is searching for a successor to Dolsten, who will step down after more than 15 years at the drugmaker. Dolsten played a crucial role in developing Pfizer’s Covid vaccine. More

Audi has struck a multiyear partnership with Inter Miami CF as the team’s official automotive partner.
Starting Thursday, the partnership includes a fleet of vehicles, wrapped in Inter Miami CF’s signature pink color, as well as Audi test drive experiences, fan zone activations and stadium LED and other in-game content.
The partnership comes at a major moment for North American soccer and Lionel Messi’s Inter Miami CF.

Volkswagen-owned Audi has struck a multiyear partnership with Inter Miami CF as the team’s official automotive partner.
Courtesy: Audi

Audi is driving up its sports investments and becoming the official automotive partner of Inter Miami CF.
The Volkswagen-owned company announced Thursday it has struck a multiyear partnership with the South Florida soccer club as Audi aims to reach a growing soccer fan base, according to Audi of America Chief Marketing Officer Emilie Cotter.

“They’ve got five million U.S. fans and growing, and they’re just a real performance powerhouse, so it was a perfect fit for us,” Cotter said.
Starting Thursday, the partnership includes a fleet of vehicles, wrapped in Inter Miami CF’s signature pink color, as well as Audi test drive experiences, fan zone activations and stadium LED and other in-game content, according to Cotter.
Terms of the partnership were not disclosed.
Inter Miami CF president of business operations Xavier Asensi said elements of the partnership are ongoing as opportunities arise. He said Inter Miami CF aims for a long-term partnership where the two companies can build together.
“The good thing about being a partner is that when the opportunity happens, then you can seize it,” Asensi said.

Audi has been the official automotive partner of Major League Soccer since 2015, and Cotter said the automaker hopes to continue to build its soccer portfolio.
Audi has also been increasing its sports investments more broadly, with plans to reenter Formula 1 auto racing starting in the 2026 season.

Lionel Messi of Inter Miami CF celebrates after scoring a goal in the first half during the Leagues Cup 2023 semifinals match between Inter Miami CF and Philadelphia Union at Subaru Park in Chester, Pennsylvania, on Aug. 15, 2023.
Tim Nwachukwu | Getty Images Sport | Getty Images

The Inter Miami CF partnership comes at a major moment for North American soccer, with the Copa America 2024 Final taking place in Miami on Sunday, and the 2026 FIFA World Cup slated for stadiums across the U.S., Canada and Mexico.
Inter Miami CF in particular has seen a boost from superstar Lionel Messi, who joined the roster last year, driving ticket sales. Asensi said the high-profile signing marks a “before and after Messi” period for the young club, founded in 2018.
“Six months or a year ago, people were like, ‘Yeah, maybe,’ but now I feel like everyone is a soccer fan,” Cotter said. “What we’re seeing is just a huge explosion of the sport in the U.S. and I do think Inter Miami has a special place in that growth.”

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