Stock Indexes Wrap: Tech Rises; Apple Climbs Ahead of Earnings While Supplier Qorvo Tumbles
May 02, 2024 04:06 PM EDT
The Dow
Boeing (BA) led the index, rising 4.3%.
Amazon (AMZN) rose 3.2%, continuing to climb after reporting better-than-expected earnings Tuesday evening.
Apple (AAPL) advanced 2.2% ahead of its hotly anticipated earnings report after the bell.
3M (MMM) slid 1.6%, giving up some of its gains from its earnings beat earlier in the week.
Johnson & Johnson (JNJ) slipped 0.8%, also losing some of yesterday’s gains after it proposed a $6.5 billion talc lawsuit settlement.
The S&P 500
Paramount (PARA) surged 13.1% amid reports Sony and Apollo Management offered $26 billion to acquire the entertainment company. Paramount’s market cap was just over $8 billion at Wednesday’s close.
Qualcomm (QCOM) rose 9.7% after topping analyst estimates on the top and bottom lines amid robust demand for AI-enabled smartphones.
Kellanova (K) climbed 7.6% after CEO Steve Cahillane said the company was seeing signs market conditions were improving.
Casino stocks rose after MGM Resorts (MGM) beat earnings estimates on strong results in Macau. MGM climbed 2.8%, while Las Vegas Sands (LVS) rose 4.7% and Wynn Resorts (WYNN) advanced 2.7%.
Etsy (ETSY) slumped 15% after reporting disappointing first-quarter earnings and warning consumers were cutting back discretionary spending.
Qorvo (QRVO) tumbled 14.5% after the Apple supplier offered current-quarter sales and earnings guidance well below Wall Street’s expectations.
Cigna (CI) fell 3.5% after swinging to a loss in the first quarter as it recorded a $1.8 billion charge related to its minority interest in clinic operator VillageMD. Excluding the charge, Cigna beat earnings estimates.
ConocoPhillips (COP) dipped 1.7% after reporting revenue and earnings declined in the first quarter.
The Nasdaq 100
Moderna (MRNA) jumped 12.7% after beating first-quarter earnings estimates, with sales falling from the year before but holding up better than expected.
Tech led markets higher, with Nvidia (NVDA) climbing 3.3% and Micron (MU) advancing 1.9%.
Cybersecurity stocks rose ahead of Fortinet’s (FTNT) earnings report after the bell. Crowdstrike Holdings (CRWD), Palo Alto Networks (PANW), and Fortinet all added more than 2.5%.
DoorDash (DASH) plummeted 10.3% after missing earnings estimates amid a slowdown in restaurant spending.
DoorDash Stock Tumbles After Earnings Miss Amid Slower US Restaurant Segment
May 02, 2024 03:10 PM EDT
Food delivery giant DoorDash (DASH) posted a wider-than-expected loss for the first three months of the year amid moderating demand in its core U.S. restaurant market, sending its shares tumbling Thursday.
The company reported a first-quarter net loss of 6 cents a share, compared with the 3-cents-per-share loss Wall Street had expected. However, revenue grew 23% from a year earlier to $2.51 billion, topping estimates of $2.45 billion.
While gross order value in the period climbed 21% to $19.2 billion, the company said growth in its core U.S. restaurant segment decelerated slightly on a sequential basis. Moreover, its current-quarter gross order value midpoint guidance of $19.2 billion came in slightly below the $19.22 billion modeled by analysts.
DoorDash stock was down 10.5% late in the afternoon Thursday. Still, the stock has gained more than 15% so far this year.
Peloton Slumps to All-Time Low Amid Restructuring, CEO Departure
May 02, 2024 02:14 PM EDT
Shares of Peloton Interactive (PTON) sank to an all-time low Thursday after the provider of exercise machines and online workouts announced new cost-cutting measures, including layoffs, and that CEO Barry McCarthy was stepping down.
The company said it would reduce its workforce by about 15% or 400 positions, continuing the reduction in its retail showroom footprint, and reimagining “the company’s international go-to-market approach to be more targeted and efficient.”
The news came as Peloton posted worse-than-expected results for its fiscal third quarter of 2024. The company reported a loss of 45 cents per share, with revenue down 4.2% year-over-year to $717.7 million. Both were short of estimates compiled by Visible Alpha.
McCarthy took over Peloton in February 2022 from co-founder John Foley as the company struggled from a slump in demand following a boom during the COVID-19 pandemic lockdowns. He began a major restructuring of the firm, slashing jobs and reducing costs
Peloton shares were 10.3% lower at $2.90 Thursday afternoon and have lost about 53% of their value this year. In early 2021, at the stock’s peak, one share was worth more than $165.
Etsy Stock Dives as Retailer Warns of ‘Challenging Environment’ for Consumer Spending
May 02, 2024 01:18 PM EDT
Shares of Etsy, Inc. (ETSY) plummeted Thursday after the e-commerce company reported quarterly earnings that came in short of expectations after markets closed Wednesday.
The stock was down 14% at $59.98 at around noon ET, after falling as much as 18% to its lowest intraday level in four years earlier in the session.
While the number of active buyers on the site increased nearly 2% compared to the first quarter of 2023, gross merchandise sales (GMS) across the marketplace fell to $2.99 billion from the $3.10 billion Etsy reported last year.
Chief Executive Officer Josh Silverman said in the report that the company has been “pressured by the challenging environment” of consumers pulling back spending on discretionary products such as those Etsy’s marketplace specializes in, which “continues to be a headwind to Etsy marketplace growth,” Silverman said.
Etsy projected that GMS for the current quarter would be similar to the first-quarter numbers, with the possibility of a low- to mid-single digit decline. For the full year, however, the company said it currently expects a “modest acceleration” in GMS over the second half of 2024 compared to the second half of 2023.
Carvana Roars Back into Gains With Bullish Outlook, Q1 Beat
May 02, 2024 12:27 PM EDT
Shares of Carvana (CVNA) skyrocketed after the online used car retailer issued an upbeat outlook for the current quarter and had its best financial results ever as it made more money per sale and cut costs.
The company said it was expecting a sequential increase in the growth rate in retail units in the second quarter and reported a record first-quarter profit of $49 million after posting a $286 million loss a year ago. The quarter’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $235 million and revenue of $3.06 billion were also record highs.
Both adjusted earnings per share of $0.23 and revenue came in above expectations. It also said it expects a sequential increase in EBITDA in the second quarter.
Its volatile stock was up 32.5% at $115.46 early in the afternoon Thursday, and is up about 1,500% in the past year.
Novo Nordisk Slips Though Earnings Beat Estimates
May 02, 2024 11:30 AM EDT
Novo Nordisk (NVO) reported first-quarter earnings Thursday that beat analysts’ estimates as demand surged for its weight loss drugs, Ozempic and Wegovy.
The drugmaker reported net profit of 25.41 billion Danish kroner ($3.65 billion), up from 19.81 billion kroner ($2.84 billion) a year ago and above the 23.29 billion kroner ($3.34 billion) analysts expected, according to estimates compiled by Visible Alpha. Diluted earnings per share of 5.68 kroner (82 cents) also rose from the year-ago period and beat estimates.
Revenue of 65.35 billion kroner ($9.38 billion) was up from 53.37 billion kroner ($7.66 billion) in the year-ago period and compared to estimates of 63.61 billion kroner ($9.13 billion), as demand continued to rise for its weight-loss drugs. Novo Nordisk said sales of Ozempic and Wegovy increased 25% year-over-year, with sales in the company’s North American operations rising 34%.
As the company has done multiple times in the past few years, Novo Nordisk raised its full-year guidance, projecting sales to grow between a range of 19% to 27% at constant exchange rates, slightly up from its previous projection of 18% to 26%.
And yet American depositary receipts (ADRs) of Novo Nordisk were down 3.3% late Thursday morning. Still, the stock is up 20% so far this year.
Qualcomm Stock Jumps as AI-Equipped Smartphones Drive Better-Than-Expected Outlook
May 02, 2024 10:45 AM EDT
Qualcomm (QCOM) shares jumped Wednesday after the mobile phone chip giant posted strong earnings and a better-than-expected current-quarter outlook amid growing demand for artificial intelligence (AI)-equipped smartphones.
The company projects sales in the June quarter to range between $8.8 billion and $9.6 billion, with the $9.2 billion midpoint of that guidance above the $9.05 billion consensus. It sees earnings per share (EPS) for the period of between $2.15 and $2.35, topping the Wall Street forecast of $2.17 per share.
For the fiscal second quarter ending March 24, the San Diego, California-based company reported adjusted earnings of $2.44 per share, comfortably above estimates modeled by analysts at $2.32 a share. Revenue in the quarter of $9.39 billion improved 1% from the prior year’s corresponding quarter and topped the $9.34 billion Street expectation.
Qualcomm shares rose 9.6% Thursday morning, bringing its year-to-date gain to 24%.
Stocks Making the Biggest Moves Premarket
May 02, 2024 09:30 AM EDT
Gains:
- Carvana (CVNA): Shares of the online used car retailer surged more than 35% after it reported a $49 million profit in the first quarter, blowing past Wall Street estimates, which called for a $116 million loss.
- MGM Resorts (MGM): Shares of the casino operator climbed 9% after reporting better-than-expected revenue and earnings on a rebound in its business in China.
- Qualcomm (QCOM): Shares of the mobile phone chipmaker gained 6% after it offered upbeat current-quarter guidance amid growing demand for AI-equipped smartphones.
Losses:
- Etsy (ETSY): Shares of the online marketplace slumped 15% after it missed first-quarter revenue and earnings estimates amid increased competition from low-cost retailers and less spending by cash-strapped consumers.
- DoorDash (DASH): Shares of the restaurant-delivery company fell 8% after reporting a larger-than-anticipated loss in the first quarter despite beating revenue estimates.
- CyberArk (CYBR): Shares of the cybersecurity firm fell 4% despite reporting better-than-expected first-quarter results and raising its full-year guidance.
Stock Futures Rise as Earnings Roll On
May 02, 2024 08:37 AM EDT
Futures contracts connected to the Dow Jones Industrial Average were up 0.5% in premarket trading on Thursday.
S&P 500 futures gained 0.7%.
Nasdaq 100 futures traded 0.8% higher about an hour before markets opened.
Read More: Nasdaq Leads Stocks Higher; Apple Gains Ahead of Earnings