Wednesday’s Headlines: “The Steph Curry of the Fintech Industry”
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
The Trade Desk (TTD) +9.4%
Smartsheet (SMAR) +4.8%
Hain Celestial (HAIN) +4.7%
MercadoLibre (MELI) +3.6%
Nordstrom (JWN) +3.4%
Moving Down ⬇️
Tesla Motors (TSLA) -12.0%
Lemonade (LMND) -10.7%
PayPal (PYPL) -10.5%
Tripadvisor (TRIP) -10.2%
Upstart Holdings (UPST) -6.2%
1. Upstart (UPST) has been a Wall Street darling in 2021, but it’s pulling back after Q3 earnings despite triple-digit percentage growth. Revenue increased 250% year-over-year (YoY) to $228 million, and net income more than tripled, coming in at $29.1 million v.s. $9.7 million a year earlier. Earnings per share (EPS) were $0.60 which beat estimates of $0.33, marking a fourth consecutive beat on EPS since the company’s debut. Shares of the AI lending platform are up over 600% year-to-date (YTD), and they have shown consistent expansion despite shares being down today in the pre-market. In the words of CEO Dave Girouard, “Upstart is becoming the Steph Curry of the FinTech industry”. Read the press release here.
2. Rivian has raised the price of its initial IPO, offering a total of 153 million shares at $78, valuing the company at over $78 billion. This is well above the initial raise of 135 million shares targeted between $57-$62. As one of the most highly-anticipated IPOs of the year, the Amazon-backed EV pickup manufacturer has clearly been able to take advantage of investors ready to pounce on the floatation. The offering expects to raise $11.9 billion for the company, and underwriters will have the option to purchase a further 22 million shares. With Rivian set to go public any day now, the new pricing makes it the biggest IPO of 2021, and the 6th largest of all time. Read the full story here.
3. Hain Celestial (HAIN) delivered better results than guided but faced a number of issues in the quarter, navigating a “challenging operating environment affected by industry-wide inflation, and labor challenges” according to CEO Mark Schiller. Sales slowed overall, down 5% YoY in North America, and international sales decreased 13% from the year before, but net income came in at $19.4 million compared to a loss of $10.8 million in the year prior. The group repurchased 4.5 million shares at an average cost basis of $38.80; not a bad deal at all considering that it’s more than 20% below where shares are currently trading now. Read more here.
Some more earnings from last night:
Nautilus (NLS) was no exception to supply chain disruptions that have been ongoing this year, and the reopening of economies was bound to affect its business as a home fitness equipment provider. Net sales were $138 million, down 11% YoY from $155 million. Gross profit also sank to $42 million, down from $68 million last year, and gross margins were slashed from 43.7% to 30.5%, amid disruptions. Read more here.
ShotSpotter (SSTI) announced earnings last night that underwhelmed investors for the most part. The company posted a loss per share of $0.08 against analyst estimates of a loss of $0.02, on revenue of $14.55 million against an expected $15.03 million. CEO Ralph Clark was quick to assert, however, that “we entered the fourth quarter with encouraging momentum.” You can read more here.
There are 2 more companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.