Bank of America Corp (BAC), And The Five Biggest Earnings Disappointments for the Dow (.DJI)

The fast-food giant missed expectations both for revenue and for earnings, producing less than 1% greater sales and a 2.4% gain in net income. Comparable-store sales fell in the U.S., Europe, and the Asia-Pacific/Middle East/Africa region, and McDonald’s Corporation (NYSE:MCD) said it expected weakness to persist in April as well.

With the ongoing avian flu scare in China, the second quarter could have more of the same for McDonald’s Corporation (NYSE:MCD). Eventually, the company will have to find new ways to bolster its International Business Machines Corp. (NYSE:IBM) growth, where its best overall prospects are. Faster expansion will likely prove important as McDonald’s Corporation (NYSE:MCD) fills out its global footprint and stands up to fast-growing peers.

Pfizer Inc. (NYSE:PFE) failed to impress investors, posting a 7% drop in earnings-per-share and a 12% decline in sales for the quarter. The company continues to struggle in the aftermath of major patent expirations like Lipitor, with the need to come up with new blockbusters to replace lost revenue.

What scared investors was that Pfizer Inc. (NYSE:PFE) cut its guidance for the rest of the year by $0.06 per share. Unfortunately, the reality check for investors is that it’ll take time for the pharma giant to get its promising drug candidates through its pipeline, and so patience will be necessary in this and in future quarters.

Keep your eyes open
Just because a stock falls short in a single quarter doesn’t mean it’s doomed to future failure. But it does mean you should pay closer attention to the stock going forward in order to avoid getting surprised a second time.

The article The 5 Biggest Earnings Disappointments for the Dow originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on Bank of America. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends McDonald’s and owns shares of Bank of America, IBM, and McDonald’s.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.