Episode summary
BI Weekend: Coca Cola, Hasbro, T-Mobile Earnings | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Scott Levine, Andrew Grant, Kristina Peterson, Ken Shea, Lindsay Dutch, John Butler, Jonathan Palmer, Brian Egger
Summary
The episode focused on a set of late-week earnings and sector updates across energy, mobility, consumer staples, telecom, healthcare, lodging, and food. The biggest strategic theme was capital discipline: Transocean’s stock deal for Valaris, Coca-Cola’s more cautious 2026 outlook, T-Mobile’s push toward free cash flow, Hasbro’s digital pivot, and Hilton’s asset-light model all pointed to companies trying to protect margins while still funding growth.
On the deal and technology side, the analysts argued offshore drilling is still in a recovery phase, roboaxis are scaling but still face regulatory and business-model hurdles, and T-Mobile is trying to offset slowing subscriber growth with broadband, fiber, ads, and buybacks. Coca-Cola’s weaker mix and softer guidance suggested a slower top-line path even as innovation and marketing spending rise. Hasbro stood out for strong Wizard of the Coast and Magic: The Gathering growth, while tariffs remained a profitability headwind.
In healthcare and lodging, CVS’s repeated 2026 profit guide was treated as a relief signal rather than a disappointment, and Hilton’s outlook remained solid thanks to 1% to 2% revpar growth and continued international expansion.
Key takeaways
- The analyst said Transocean’s $5.8 billion all-stock deal for Valaris should speed deleveraging and add exposure to the recovering jackup market.
- Andrew Grant said roboaxis could rise from about 8,000 globally at the end of 2025 to around 18,000 by the end of 2026.
- Ken Shea said Coca-Cola’s 2026 guidance of 4% to 5% organic revenue growth and 4% to 5% EPS growth was below its long-term algorithm and consensus.
- Lindsey Dutch said Hasbro’s Wizard of the Coast digital gaming business is carrying growth, while tariffs still weighed on margins.
- John Butler said T-Mobile is shifting investor attention from revenue growth toward free cash flow and raised its 2027 free cash flow outlook by $1.5 billion.
- Jonathan Palmer said CVS’s unchanged 2026 guidance gave investors relief and suggested its turnaround does not depend on better Medicare payment rates.
Notable quotes
“Trans Ocean agreed to acquire rival Valeris in an all stock deal valued at $5.8 billion”
“the new CEO was seen as um there were hopes that he would do what he had done with the Kellogg company”
“the company's long-term algorithm is that to generate about four to six% organic revenue and from that it can generate high comparable EPS growth”
“the results in 25, including the fourth quarter, is really being driven by their Wizard of the Coast digital gaming segment”
How the episode opens
Bloomberg Audio Studios podcasts, radio news. This is Bloomberg Intelligence with Scarlett Fu and Paul Sweeney. — Concerned about rising prices, spooking investors. — What does renewables investment look like in the US? — More tariff talk coming out of this administration. — Breaking market headlines
And corporate news from across the globe. — The president wants lower interest rates. He wants a rate cut cycle. How do you broaden out the AI play? — Are people just looking for something to worry about when it comes to China? Bloomberg Intelligence
With Scarlett Fu and Paul Sweeney — On Bloomberg Radio originals and the Bloomberg Business App. — On today's Bloomberg Intelligence Show, we dig inside the big business stories impacting Wall Street and the global markets. — Each and every week, we provide in-depth research and data on some of the 2,000 companies and 130 industries our analysts cover worldwide.
Today, we'll look at why Craft Hind's new CEO is halting the process of splitting the company. Plus, a look at why T-Mobile added fewer mobile phone subscribers last quarter. — But first, we begin with a deal in the energy space.
This week, deep water oil rig owner Trans Ocean agreed to acquire rival Valeris in an all stock deal valued at $5.8 billion. — The deal will create the world's largest offshore rig contractor by market value. — And this comes as offshore drilling has been booming, especially in deep waters. For more, we were joined by Scott Lavine, our senior energy services analyst.
We asked Scott to break down who these companies are and the reasons for the deal. two of the bigger names in offshore drilling. Uh Trans Ocean uh has the largest backlog. Valeris has largest fleet. Valaris's name may not be that familiar to a lot of folks here.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- earnings
- consumer stocks
- telecom earnings
- robotaxi outlook
- energy mergers
Companies and tickers mentioned
- RIG
- VAL
- KHC
- KO
- HAS
- TMUS
- CVS
- HLT
- Transocean
- Valaris
- Kraft Heinz
- Coca-Cola
- Hasbro
- T-Mobile
- CVS
- Hilton Worldwide
Watch the episode
Watch “BI Weekend: Coca Cola, Hasbro, T-Mobile Earnings | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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