Thursday’s Headlines: Etsy Drops 13% After Hours
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Paycom (PAYC) +10.7%
Zoom Communications (ZM) +6.9%
Etsy (ETSY) +6.1%
Under Armour (UAA) +4.9%
Zillow (Z) +4.4%
Moving Down ⬇️
Stitch Fix (SFIX) -10.5%
Calavo Growers (CVGW) -7.0%
Ford Motor Company (F) -5.0%
Match Group (MTCH) -5.0%
Wynn Resorts (WYNN) -4.2%
1. Shares in Etsy (ETSY) fell almost 14% in after-hours trading after weak Q3 guidance spooked investors, who think that the pandemic e-commerce boom is stalling. The company did top Q2 estimates though, with earnings coming in at $0.68 per share on revenue of $528.9 million — though, revenue growth declined to just 23% in Q2 ’21, compared to growth of at least 100% in each of the last four quarters. This appears to be a recurring theme among e-commerce stocks following the massive acceleration of the industry in 2020 due to COVID-19. Management remains optimistic though, pointing out that despite last year’s outsized gains, growth is still healthy across the board, and is forecast to remain so. Read the official press release here.
2. Investors in Evolent Health (EVH) were treated to more than just an earnings beat during Wednesday’s Q2 earnings call. Firstly, the company revealed a marginal year-over-year (YoY) revenue jump to $222.1 million alongside a loss per share of $0.11, with total lives managed rising to 12.2 million. These figures were put to the back of investors’ minds by the subsequent announcement of Evolent’s acquisition of Vital Decisions, a specialty care management service, for $85 million, with an additional earn-out of up to $45 million. According to Evolent, the acquisition will accelerate growth, improve patient care quality and increase margins by adding capabilities in patient engagement, telehealth, and end-of-life management. Read the official statement here.
3. By all accounts, it was a pretty good quarter for brand-agnostic streaming platform Roku (ROKU), but shares plummeted after hours following its Q2 report last night. Good news first: Total net revenue grew a record 81% YoY to $645 million while Roku also reported net income of $73.5 million, or $0.52 per diluted share — all handily beating subscriber estimates. Now for the bad news: Total streaming hours fell by 1 billion hours YoY to 17.4 billion, causing concern amongst investors that, post-pandemic, growth will continue to decelerate as people move away from streaming with lockdowns lifted. Read the company’s press release here.
Some more earnings from last night:
Booking Holdings (BKNG)
The pandemic continues to impact the holiday booking stock as it reported a mixed bag on Wednesday, with revenue tripling YoY to $2.16 billion, while losses widened to $4.08 per share, compared to a profit of $2.97 per share a year earlier. “We remain focused on strengthening our core accommodation business and driving benefits to our travelers and our accommodation supply partners alike,” said CEO Glen Fogel. Read more here.
Lemonade’s Q2 report left a bitter taste in investors’ mouths last night after it revealed a widening loss of $55.6 million, or $0.90 a share, while revenue declined YoY to $28.2 million. Following the release of Lemonade Car, its motor insurance range, last quarter, Lemonade expressed its intentions of diversifying its product offering further in the future as a means of attracting new customers. Read more here.
Markel Corp (MKL)
Shares in the insurance holding company rose marginally on Wednesday following a Q2 earnings beat in which it reported a profit of $792.1 million on revenue of $3.5 billion. Co-CEO’s Thomas S. Gayner and Richard R. Whitt were optimistic on the call: “As we pass the halfway mark of 2021, we remain excited about our position in the markets we serve and look forward to building upon our first-half performance with the continued hard work and dedication of our employees and the support of our trading partners.”
Mercado Libre (MELI)
It was a strong quarter for MyWallSt’s latest Stock of the Month after it came out with Q2 earnings of $1.37 per share, compared to estimates of $0.09 per share, on net revenue of $1.7 billion, up 103% YoY. The Latin American e-commerce and logistics giant is among the few e-commerce+ firms to repeat 2020’s stellar growth in 2021 as it beefs up its other divisions such as financing and logistics. Read more here.
Match Group (MTCH)
Despite posting a revenue beat of $707.8 million in Q2 and reporting a record 15 million premium dating app subscribers, Match Group stock fell yesterday after earnings per share of $0.46 missed analyst estimates. The company noted that while improvements in the European and U.S. dating scene have boosted revenue, Asian, Indian, and Latin American recovery has been slower. Read more here.
Wynn Resorts (WYNN)
Despite reporting a loss of $1.15 per share on revenue of $990.1 million, Wynn Resorts handily beat Wall Street’s expectations as vaccine rollouts cause holiday-making to heat up. “We were pleased to see the strong return of our guests at both Wynn Las Vegas and Encore Boston Harbor during the second quarter with Adjusted Property EBITDA at our U.S. operations well above pre-pandemic levels, highlighting the significant pent-up demand for travel and leisure experiences,” said Matt Maddox, CEO of Wynn Resorts, Read more here.
There are 14 companies on the MyWallSt shortlist that will report earnings today:
Howard Hughes Corp (HHC)
Monster Energy (MNST)
Zillow Group (Z)
Get this week’s full earnings calendar here.