Fast-spreading COVID-19 Delta variant begins to hit Corporate America – The Madison Leader Gazette

The stock market continues to ignore escalating headlines on the COVID-19 Delta variant front and climb to new highs.

But given a recent change in tone from US companies, investors may be on high alert. Companies that had been optimistic about the economic recovery from the depths of the pandemic are becoming increasingly cautious as the variant spreads.

Here are three household names that recently warned of a financial impact from the COVID-19 Delta variant. Investors may ignore the comment below, but it could prove to be a drag on earnings in the current quarter – a hurdle that is not factored into stock prices.


While Disney has generally impressed investors with its most recent revenue – most notably reaching 116 million subscribers for its Disney + streaming service – the COVID-19 variant Delta lurks like a potential headwind in the coming quarters.

FILE – In this Friday, April 30, 2021, file photo, visitors leave Sleeping Beauty’s castle at Disneyland in Anaheim, California. expenditures of pre-pandemic levels. (AP Photo / Jae C. Hong, file)

Disney (DIS) says it is seeing an increase in visit cancellations to its parks.

“In terms of the impact of the Delta variant, we see that the high demand for our fleets continues. And the main noise we’re seeing right now is really about group or convention cancellations. In other words, large groups that arrive in the relatively short term. But, overall, we are seeing very high demand for our parks. In fact, our park reservations are now above our third quarter attendance levels. And as you just saw with the announcement of our results, our Q3 attendance levels were pretty good. So we’re still optimistic about the future of our parks business, ”Disney CEO Bob Chapek told analysts on a conference call Thursday night.


Similar to Disney, Airbnb had a strong second quarter as travel resumed after people received their COVID-19 vaccine. The company’s second-quarter sales jumped 299% to $ 1.3 billion from a year ago. Adjusted operating profit reached $ 217 million, a marked improvement from an operating loss of $ 59 million.

Despite the rebound, Airbnb (ABNB) CFO David Stephenson warned that the COVID-19 Delta variant was starting to take its toll.

“So as we come out of the second quarter and move into the third quarter, we have a combination of fewer bookings for the fall, just considering the nature of some seasons and any kind of potential impact on the issues. of COVID at the start of the third trimester. So we’re not seeing a substantial deceleration.

Airbnb has incorporated this caution into its outlook for the third quarter – it sees bookings down from the second quarter and from the third quarter of 2019.

South West

As Yahoo Finance’s Myles Udland wrote in the Morning Brief, Southwest surprised investors this week with its own Delta variant warning.

“The company recently experienced a deceleration in close bookings and an increase in close trip cancellations in August 2021, believed to be due to the recent increase in COVID-19 cases associated with the Delta variant. Based on the assumption that COVID-19 cases remain elevated in the near term and that current revenue trends in August continue into September, the Company’s current outlook for Q3 2021 operating revenue stands. deteriorated by about three to four points from its previous outlook three. a few weeks ago, compared to Q3 2019, ”Southwest warned in a new SEC filing.

Southwest expects third quarter operating revenue to fall 15-20%.

Brian Sozzi is an editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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