By Jaimy Lee
The Trump administration on Monday requested about $2.5 billion in funding for the outbreak, and Azar, the HHS secretary, is expected to face questions about the outbreak and the U.S. response in his four scheduled appearances on Capitol Hill this week, Raymond James’s Chris Meekins said in a note on Tuesday. “We continue to believe the virus is likely to get worse before it gets better, and that this issue will stretch at least into [the year’s second quarter],” Meekins added.
Here’s what companies are saying about the impact of COVID-19:
• Wolverine World Wide Inc. /zigman2/quotes/209231729/composite WWW +3.39% provided a downbeat full-year outlook, citing the negative impact of the coronavirus outbreak on its shoe brands, which include Hush Puppies, Sperry, and Stride Rite. The company reported a net loss of $900,000, or 1 cent a share, in the latest quarter, after earnings of $39.3 million, or 39 cents a share, in the year-ago period.
• United Airlines Holdings Inc. /zigman2/quotes/205037281/composite UAL +5.06% on Monday rescinded its annual revenue guidance for 2020, saying the outbreak is too unpredictable to ensure that the forecast it issued two months ago will hold up. The airline has suspended flights to and from the Chinese cities of Beijing, Chengdu and Shanghai as well as Hong Kong through April 24. Those flights were expected to make up 5% of United’s 2020 planning capacity. As such, United “is experiencing an approximately 100% decline in near-term demand to China and an approximately 75% decline in near-term demand on the rest of the Company’s trans-Pacific routes.”
• Mastercard Inc. /zigman2/quotes/207581792/composite MA +0.17% said Monday it expects to shave two to three percentage points from its first-quarter revenue guidance because of the impact of COVID-19 on “cross-border travel and, to a lesser extent, cross-border e-commerce growth.”
• HP Inc. /zigman2/quotes/203461582/composite HPQ -0.07% said it expects a “negative impact to our top line, bottom line and [free cash flow],” citing delayed production and manufacturing timelines. The technology giant said that, when taking into account the outbreak, it now anticipates earnings per share of 46 cents to 50 cents and adjusted EPS of 49 cents to 53 cents.
• The Coca-Cola Co. /zigman2/quotes/209159848/composite KO +0.66% said the outbreak “will negatively impact our unit case volume and financial results for the first quarter of 2020” because the drinks maker has seen delays in the production and export of ingredients used in nonnutritive sweeteners. It doesn’t expect a hit to its full-year results for now.
Read more of MarketWatch’s COVID-19 coverage: