Friday’s Headlines: Square Beats The Street
The answer to yesterday’s anagram was Value Investing.
See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
Hint: It’s an earnings season metric we mention a lot.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Cloudflare (NET) +18.7%
Evolent Health (EVH) +17.4%
Upstart Holdings (UPST) +17.0%
Roku Inc. (ROKU) +14.2%
CrowdStrike (CRWD) +13.0%
Moving Down ⬇️
Booking Holdings (BKNG) -7.1%
Diageo (DEO) -2.3%
Coca-Cola (KO) -1.8%
Axos Financial (AX) -1.2%
Brown-Forman (BF.B) -0.9%
1. Despite slowing growth for its flagship Cash App product, Block (SQ) — formerly Square — reported December-quarter earnings, net revenue, and gross payment volume that topped analyst estimates. Earnings per share (EPS) came in at $0.27, v.s. an expected $0.23, while revenue jumped 62% year-over-year (YoY) to $4.42 billion, boosted by Cash App transactions for digital cryptocurrency, Bitcoin. The company, like so many others, fell after-hours, however, as it revealed that a slow down in growth is expected in Q1 as inflation and other economic fears negatively impact personal spending. It has since recovered though and is soaring pre-market open. For the complete earnings report and an update on Square’s purchase of Afterpay, read here.
2. Planet Fitness (PLNT) is ‘back in business’. Total Q4 revenue was up 37.3% to $183.6 million, helping the gym chain to take in net income of $5.7 million, or $0.07 per diluted share. The big news came in the form of member numbers, however, which rose to 15.2 million at the end of 2021, a 1.7 million increase YoY, and surpassed its pre-pandemic first quarter 2020 membership peak. CEO Chris Rondeau was optimistic, stating: “We believe there is a long-term untapped opportunity for growth as the pandemic underscored the importance of overall fitness, and we offer a welcoming and safe environment for people looking to get off the couch to begin their fitness journey.” Read the official press release here.
3. Tesla’s (TSLA) Berlin Gigafactory may not have a roof yet, but that hasn’t stopped the EV giant from doubling down on Chinese production. According to reports, it appears that Tesla may be looking to build another vehicle production facility in Shanghai. This would give Musk & Co. the capacity to produce more than two million vehicles per year in China alone once fully operational. Giga Shanghai has been Tesla’s ace in the hole for the past year, accounting for almost half of all vehicles produced in 2021, and with domestic competition ramping up in the U.S., further dominance in China could keep Tesla ahead of the pack. Read more here.
More earnings from last night:
It was a mixed bag from American Tower (AMT) in Q4, which reported earnings per share of $0.99 on revenue of $2.45 billion, missing expectations on the former. CEO Tom Bartlett was optimistic, however, stating: “In 2022, we expect to again drive solid growth across our comprehensive global portfolio.” Read more here.
Architecture software specialist Autodesk (ADSK) beat the street for Q4 earnings, reporting a 17% YoY revenue increase to $1.21 billion. “With consistent investment in technology and talent, and the evolution of our business model and customer experience, I’m excited and optimistic about Autodesk’s future,” said CFO Debbie Clifford. Read more here.
Etsy (ETSY) reported adjusted earnings of $1.11 a share on revenue of $717.1 million for Q4, but disappointed investors with guidance in the range of $565 million to $590 million for Q1. Despite citing supply constraints, CEO Josh Silverman was quick to point out that “shoppers continue to love their experiences with Etsy and are coming back for more.” Read more here.
TurboTax developer Intuit (INTU) missed estimates for Q4, earning an adjusted $1.55 a share on sales of $2.67 billion, sending shares down after-hours. “We see continued strong momentum across the company as we focus on our mission to power prosperity and solve our customers’ biggest financial problems,” said CEO Sasan Goodarzi. Read more here.
One of Wall Street’s greatest success stories, Monster Energy (MNST), posted record fourth-quarter revenue of $1.43 billion — up 19.1% YoY — with annual net sales exceeding the $5.5 billion mark for the first time. All this, despite continued additional global supply chain challenges, including freight inefficiencies, shortages of shipping containers, port of entry congestion, and delays in the receipt of certain ingredients, some of which are likely to be transitory. Read more here.
Get this week’s full earnings calendar here.