Friday’s Headlines: Roku Hit By Weaker Guidance

Friday’s Headlines: Roku Hit By Weaker Guidance

Morning folks! Did anyone get yesterday’s anagram? The answer was Privacy. 

See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.

Energetic Caller

Hint: Was once the most valuable company in the world by market cap.

We’ll reveal the answer in Monday’s headlines.

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Hasbro (HAS) +2.1%

Coca-Cola (KO) +2.0%

Duluth Trading (DLTH) +0.6%

Costco (COST) +0.5%

Hain Celestial (HAIN) +0.1%

Moving Down ⬇️

Trupanion (TRUP) -17.0%

Shopify (SHOP) -11.6%

Roku Inc. (ROKU) -10.4%

MercadoLibre (MELI) -9.9% (BILL) -9.7%

1. Roku ROKU) shares dropped 25% after-hours following its earnings report based on weaker guidance, which comes amid lower TV sales and difficulties attaining essential components. Revenue also showed signs of slowing, up only 33% to $865 million, compared with 81% and 51% year-over-year growth (YoY) achieved in Q2 and Q3, respectively. Guidance for Roku’s next quarterly results forecasts just 25% growth. While the short-term looks less than ideal for Roku, it now has over 60 million active accounts, which came in ahead of estimates, and the company is prioritizing user acquisition over all other metrics. CEO Anthony Wood is confident supply issues will subside, and that “these conditions are not permanent”. Read the full press release here.

2. Ford’s (F) breaking out the champagne while Tesla (TSLA) shuffles off with its tail between its legs, following the release of Consumer Reports’ ‘Top Electric Vehicle For 2022’ list which judges vehicles based on safety, reliability, and affordability. The Tesla Model 3 was knocked down several notches, while the Mustang Mach-E — Ford’s all-electric SUV — took the crown.  Alongside Ford, new entrants including Mazda, BMW, Honda, Lexus, and Mitsubishi blazed the top spots. The designation bodes well for Ford as it launches the F-150 Lightning this year, and despite Tesla’s inherent advantages, it serves as a reminder that it’s no longer dealing with a small pool of competitors. Read the full story here.

3. Redfin (RDFN) reported massive revenue increases in its Q4 results last night. Total sales grew 163% to $643 million, but its net loss almost doubled on a YoY basis to $28 million. It penetrated 1.15% of home sales through Q4, and it had 45 million monthly users across platforms on average. Evidence shows home sales contribute significantly to revenue growth — properties made up $377 million in revenue — and it’s important to note this is one of Redfin’s lower margin segments as it scales iBuying. That being said, CEO Glenn Kelman believes it can avoid pitfalls by committing to a cautious approach that means not overpaying for homes. Read the full press release here.

Some more earnings from last night:

It was a solid quarter for Chuy's (CHUY), with the restaurant chain topping estimates on net income of $6 million, or $0.30 per share. Management appeared confident that the Tex-Mex specialists were coming out the other side of a devastating pandemic as customers flocked back to physical stores at the tail-end of 2021. Read more here.

What more could Cognex (CGNX) investors ask for than a record year for profits, which came in at $279.9 million on — also record — revenue of $1.04 billion. “We believe the trends driving the adoption of machine vision technology are stronger than ever as manufacturers look to automate a broadening range of industrial tasks,” Chief Executive Robert J. Willett said in a statement. Read more here

Retail Opportunity Investments Corp (ROIC) provided investors with mixed emotions for Q4 after missing expectations on funds from operations of $32 million, or $0.25 per share. However, the real estate investment trust from San Diego is showing promising signs of future profitability as it navigates a difficult market. Get all the figures here.

The return to “normal” travel trends hasn’t boosted Tripadvisor (TRIP) just yet after it disappointed investors with an adjusted loss of $0.01 per share on revenue of $241 million in Q4. Although the start of the year has been impacted by Omicron, investors can take some solace in the assumption of a progressive return to pre-pandemic levels of the leisure travel market at some point later this year. Read more here.

There’s just one company on the MyWallSt shortlist that will report earnings today:

DraftKings (DKNG)

Get this week’s full earnings calendar here.

David GranahanDavid Granahan