Monday’s Headlines: Square Releases Q2 Earnings Early

Monday’s Headlines: Square Releases Q2 Earnings Early

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Atlassian (TEAM) +21.9%

Evolent Health (EVH) +3.3%

Align Technology (ALGN) +2.8%

FactSet (FDS) +2.3%

Cognex (CGNX) +2.3%

Moving Down ⬇️

Pinterest (PINS) -18.2%

Zendesk (ZEN) -13.3%

Etsy (ETSY) -7.8%

Amazon (AMZN) -7.6%

Texas Roadhouse (TXRH) -6.6%

1. In a bid to give analysts such as myself headaches, Square (SQ) released its Q2 earnings last night, three days earlier than expected, and beat expectations. Gross profit increased 91% from a year ago, Cash App profit was up 94%, seller profit jumped 85% from a year ago, and net revenue excluding Bitcoin came in at $1.96 billion for the quarter, an 87% rise year over year. Meanwhile, the Jack Dorsey-owned firm also announced its plans to acquire Australian ‘buy now, pay later’ leader, Afterpay, in a $29 billion all-stock deal which brings them into the booming installment loan market. Read the official press release here.

2. Things are going from bad to worse for Amazon (AMZN). Following its disappointing earnings report last Thursday, which sent its stock plummeting more than 7% the e-commerce giant has been slapped with a fresh EU fine. Luxembourg’s National Commission for Data Protection (CNPD) has hit Amazon with a record-breaking €746 million ($887 million) GDPR fine over the way it uses customer data for targeted advertising purposes. Amazon disclosed the ruling in an SEC filing on Friday in which it slammed the decision as baseless and added that it intended to defend itself “vigorously in this matter,” so don’t expect to have heard the end of this story. Read more here.

3. Despite a surge in COVID-19 cases across the U.S., Disney’s (DIS) latest release, ‘Jungle Cruise’, sailed to a better-than-expected opening of $61.8 million globally, whilst also taking in an additional $30 million from Disney+. ‘Jungle Cruise’ is expected to be the last of Disney’s slate to be released simultaneously in theaters and via streaming, given the substantial evidence that such methods are eating into box office numbers, earning Disney the ire of the National Association of Theatre Owners. However, with such releases proving popular on streaming services at between $20-$30 per rental, Disney may fix its sights on more streaming exclusives in the future. Read more here.

Shares in Atlassian skyrocketed 22% on Friday thanks to an effortless earnings beat. You can read our report on this from last week here.

Some more earnings from last Friday afternoon:

Idexx Labs (IDXX)

The animal diagnostics and healthcare firm beat expectations by posting revenue growth of 30% to $826 million on EPS of $2.34, helped by organic revenue growth of 25%. “The IDEXX team delivered another quarter of outstanding performance, reflected in continued high growth in CAG Diagnostics recurring revenues and accelerated gains in instrument placements, as the global animal healthcare sector sustained strong growth momentum globally,” said Idexx CEO Jay Mazelsky. Read more here.

There are 2 companies on the MyWallSt shortlist that will report earnings today:

Arista Networks (ANET)

Take-Two Interactive (TTWO)

Get this week’s full earnings calendar here.