Thursday’s Headlines: Peloton Shares Plummet 15%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Under Armour (UAA) +6.9%
Arista Networks (ANET) +3.7%
Chegg (CHGG) +3.4%
Match Group (MTCH) +3.4%
Duluth Trading (DLTH) +3.2%
Moving Down ⬇️
Peloton Interactive (PTON) -14.6%
Stitch Fix (SFIX) -6.3%
Zillow (Z) -6.3%
Redfin (RDFN) -5.1%
Roku Inc. (ROKU) -4.8%
1. Shares in at-home fitness leader Peloton (PTON) dropped on Wednesday following a massive product recall. In light of recent reports of injuries and even one death, Peloton announced a voluntary recall of both its Tread+ and Tread treadmill machines, with CEO John Foley apologizing for not cooperating with the U.S. Consumer Product Safety Commission sooner. Peloton does not break down its product sales of treadmills versus bikes, but it is estimated that treadmills represent less than 3% of its total unit sales. Investors can expect a more in-depth update at the company’s Q1 earnings call tonight. Read the official press release here.
2. Judging from PayPal’s (PYPL) Q1 earnings beat, physical cash may truly be on its way out. The digital payments giant reported adjusted earnings per share of $1.22, versus $1.01 expected, on revenue of $6.03 billion, while total payment volume surged to a record $285 billion. This 31% revenue growth was largely driven by the company’s foray into the world of cryptocurrency, with PayPal now boasting 26 million retainers who can now buy, sell, and check out with the popular digital currency. With respect to guidance, for the second quarter, PayPal sees adjusted earnings of $1.12 per share on $6.25 billion in revenue. Read the official press release here.
3. Ford Motors (F) shares ticked higher on Wednesday following the unveiling of a promising new product, which promises to be “the most off-road-capable Explorer ever.” Starting with the Explorer SUV this summer, Ford will be rolling out a whole new lineup of off-road vehicles under the brand name Timberline, hoping to capitalize on increasing sales of SUVs and demand for off-road-capable vehicles. “Consumer data has shown us that now more than ever, customers want to get outside and explore nature with friends and family,” Kumar Galhotra, Ford president of the Americas & International Markets Group, said in a statement. You can read more about Ford’s SUV plans here.
Some more earnings from last night:
Booking Holdings (BKNG)
Things are still tough in the world of travel, as evidenced by Booking’s first-quarter earnings report last night, which recorded a drop of roughly 50% in revenue from the same time last year and a loss of $55 million. CEO Glen Fogel seemed positive, however, noting that there are “encouraging signs of improving booking trends in the first quarter that continued into April with notable strength in the U.S.” Read more here.
Cognizant Technology (CTSH)
Shares of Cognizant fell some 6% after the bell last night after the company reported revenue of $4.4 billion — a 4.2% increase year-over-year — and adjusted earnings of $0.97 per share. For the next quarter, the company has forecast relatively flat growth (between $4.42-$4.46 billion), while full year sales are forecast to increase by 9% at the top end. Read more here.
Etsy posted some huge numbers last night, with Gross Merchandise Sales (GMS) growing 128% to $3.1 billion and revenue up 141% to $551 million compared to the same period last year. However, investor spirits were dampened by disappointing Q2 forecasts which called for just $493 - $536 million in revenue (15 - 25% growth), sending shares sliding after hours. Read more here.
Evolent Health (EVH)
The healthcare company beat expectations with a loss of $0.01 per share on revenue of $215.1 million, compared to year-ago revenues of $247.29 million. CEO Seth Blackley also announced a new partnership with a leading network of risk-based primary care clinics and discussed its new health plan partner on the call. Read more here.
Match Group (MTCH)
This dating app is swinging higher following an earnings beat, as well as boosted Q2 forecasts for revenue to between $680 million and $690 and net income to between $255 million and $260 million. The Tinder-owner’s CEO stated his confidence to shareholders: “As we head into summer, with a growing number of people getting vaccinated, we cannot help but be excited... Looking forward to a summer of love.” Read the official press release here.
It was a mixed Q1 for the Latin American e-commerce leader, which missed expectations with a loss per share of $0.68 but managed to top analyst estimates on net revenue of $1.38 billion — gross merchandising volume soared to $6.1 billion, up 114% year-over-year. Amid the global pandemic, management appeared confident of its plans to shore up operations in Latin America, outlining plans for more distribution centres in the region to consolidate growth. Read more here.
The iBuying specialist posted a 40% surge in revenue to $268 million, and a net loss of $0.37 per share in its Q1 earnings report. CEO Glenn Kelman discussed the success of Redfin’s latest business ventures, stating: “Our RedfinNow business of buying and selling homes returned to growth and earned its first significant gross profits, and our mortgage business continued to grow at a year-over-year rate of about 200%.” Read more here.
After easily topping expectations with a loss per share of $1.24 on sales of $590 million — up 62% YoY — Twilio’s forecast of yet another quarter of losses for Q2 sent its share price dropping on Wednesday. When asked about this disappointing guidance, CFO Khozema Shipchandler stated: “We’re still up in the quarter, based on the guide, 47% to 50%. Obviously, the world is a very, very complicated place right now. There’s a lot of moving pieces. And so I think we’ll wait and see how things exactly play out.” Read more here.
There are 15 companies on the MyWallSt shortlist that will report earnings today:
Hain Celestial (HAIN)
Monster Energy (MNST)
Planet Fitness (PLNT)
Get this week’s full earnings calendar here.