All in all, telecom companies are positioning themselves to compete as demand for wireless spectrum heats up (Additional reading: How to Invest for a 13-Fold Increase in Mobile Web Traffic). Wireless spectrum can be thought of as virtual real estate with limited availability. AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have benefitted most as the FCC has awarded the most spectrum to the highest bidder.
For the current quarter, investors will be looking to learn more about the Leap Wireless deal and the potential for regulatory approval. Owners of 29.8% of outstanding LEAP shares have agreed to vote in favor of the transaction, decreasing the likelihood of a competing bidder such as T-Mobile.
World’s largest restaurant chain
Monday, July 22, 2013 before market open; EPS $1.40 / Revenue $7.10 billion
McDonald’s Corporation (NYSE:MCD) is the world’s leading global foodservice retailer with more than 34,000 restaurants in 118 countries around the globe. The company states on its Investor Relations website that it serves food to more than 69 million people each day.
On June 10, McDonald’s Corporation (NYSE:MCD) announced global comparable sales rose 2.6% in May, with an increase in all major markets. U.S. sales rose 2.4% lead by strength in the breakfast category, Europe sales rose 2.0% in spite of the recession, and Asia/Pacific, Middle East and Africa rose 0.9%.
For the current quarter, investors will be focused on a continuation of positive comps following a disappointing report from the Commerce Department. Food service sales fell 1.2% in June, the largest decline since February 2008 according to government data. The American consumer might be pressured over rising gas prices and stalling wage growth, substituting a trip to McDonald’s Corporation (NYSE:MCD) with a trip to the grocery store.
Wall Street has a mixed outlook on McDonald’s Corporation (NYSE:MCD) ahead of Monday’s earnings report. Analysts at Wells Fargo believe that sales are poised to improve in the second half of 2013 despite the negative report from Commerce. In contrast to Wells Fargo, analysts at Janney Capital believe that expectations are too high for Q2 results, and that recent checks indicate that results will likely fall below consensus.
Foolish takeaway
Expectations stand near all-time highs for AT&T Inc. (NYSE:T), McDonald’s Corporation (NYSE:MCD), and Netflix, Inc. (NASDAQ:NFLX) as investor sentiment remains elevated for these companies.
AT&T is expected to solidify its position as the #2 wireless carrier in the United States by acquiring new wireless spectrum in its battle against Verizon Communications. Investors are hoping that McDonald’s Corporation (NYSE:MCD) will be able to continue its impressive comps despite rising gas prices and a tepid economy. Finally, Netflix bulls and bears continue to battle over the company’s subscriber growth versus a focus on profitability.
The article Can These Companies Deliver Amid High Expectations? originally appeared on Fool.com and is written by John Macris.
John Macris has no position in any stocks mentioned. The Motley Fool recommends McDonald’s and Netflix. The Motley Fool owns shares of McDonald’s and Netflix. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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