Friday’s Headlines: DocuSign Dips Hard
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Duluth Trading (DLTH) +18.4%
Wynn Resorts (WYNN) +8.2%
LoveSac (LOVE) +7.4%
Chuy's (CHUY) +7.0%
Moving Down ⬇️
nCino (NCNO) -15.6%
Etsy (ETSY) -3.7%
Veeva Systems (VEEV) -3.6%
Baozun (BZUN) -3.4%
Zoom Communications (ZM) -3.0%
1. DocuSign (DOCU) saw its shares drop more than 30% after hours following a poor outlook for the holiday quarter. The electronic agreements company actually posted relatively solid earnings, reporting adjusted earnings per share (EPS) of $0.58 versus an expected $0.46, on revenue of $545.5 million against predictions of $531 million. This wasn’t enough to offset underwhelming Q4 forecasts, however. DocuSign predicts revenue of $563 million at most — analysts were expecting $573.8 million. This large disparity is the chief reason behind the massive stock tumble this morning. CEO Dan Springer expressed his disappointment at the outlook by stating “while we had expected an eventual step down from the peak levels of growth achieved during the height of the pandemic, the environment shifted more quickly than we anticipated.” Read more here.
2. Apple (AAPL) shares experienced a slight dip yesterday following reports that iPhone demand isn’t as high as expected. Apple has reportedly already warned its suppliers of this low demand as early as Wednesday. It would be easy to pass this off as related to the rampant global supply chain issues or retail fears surrounding the Omicron COVID variant. However, this drop in demand seems to be coming straight from the consumers themselves. Apple had already reduced its production goal for iPhones this year by 10 million units due to the aforementioned supply chain issues. The company hoped to make up the shortfall across the holiday season and into the start of 2022, but it is now increasingly likely that these sales just won’t materialize. Read more here.
3. Nvidia (NVDA) was struck a significant blow yesterday following the announcement that the Federal Trade Commission (FTC) is suing to block the company’s proposed purchase of semiconductor technology developer ARM. ARM supplies architecture technology to many of the world’s semiconductor companies. The proposed $40 billion purchase was flagged by anti-trust enforcement as it would give Nvidia the opportunity to control this technology and cut its competitors out of the market. Rival companies also share important competitive information with ARM, which Nvidia would gain access to following the merger. Nvidia had expected to close the deal in 2022, but will now have to enter litigation in an attempt to conclude the purchase. Read more here.
Some more earnings from last night:
Duluth posted a solid earnings beat yesterday, reporting EPS of $0.09 against an expected loss of $0.19, on revenue of $145.28 versus a forecasted $142.45 million. This comes on the back of a stellar year for the workwear company that sees it up almost 50% year-to-date (YTD). Read more here.
Smartsheet saw its shares rise by over 15% following an impressive earnings call last night. The software company posted EPS of -$0.03 against an expected -$0.11, on revenue of $144.6 million versus a predicted $140 million. A record quarter for the company saw it close its highest number of large deals ever. Read more here.
Ulta Beauty (ULTA)
Ulta beauty posted an earnings beat last night that has sent its stock rising over 5% after hours. The beauty company reported EPS of $3.93 against analyst estimates of $2.46, on revenue of $2 billion. With EPS up 200% year-over-year (YoY) and sales up 29%, this marks an extremely impressive quarter for the company. Read more here.
Yext managed to beat analyst estimates in its earnings call yesterday. The cloud-based brand management company posted EPS of -$0.04 against a predicted -$0.07, on revenue of $99.53 million. This has resulted in a small stock bump of over 3% for a company that has largely underperformed the markets all year. Read more here.
Get this week’s full earnings calendar here.