Thursday’s Headlines: The Market's Worst Day Since June
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Twilio (TWLO) +3.7%
Teladoc (TDOC) +1.7%
Fitbit (FIT) +1.0%
TrueCar (TRUE) +0.9%
Tiffany & Co. (TIF) +0.8%
Moving Down ⬇️
Mastercard (MA) -8.1%
Smartsheet (SMAR) -7.5%
Planet Fitness (PLNT) -7.4%
Duluth Trading (DLTH) -6.7%
2U (TWOU) -6.3%
1. U.S. stocks fell dramatically on Wednesday amid concerns over record-level increases in coronavirus infections and its potential impact on the global economy, coupled with stimulus and election volatility. The Dow Jones Industrial Average (DIA) dropped 3.4%, posting its fourth straight negative session, while the S&P 500 (VOO) slid 3.5%, and the Nasdaq Composite (QQQ) fell 3.7%. The Dow and the S&P 500 both suffered their worst day since June 11. As a result of this uncertainty, the six largest U.S. tech companies have shed a collective $273 billion in value over the past two days. Read the full report here.
2. Who wants a truck? Everyone it seems, at least according to Ford’s (F) blowout Q3 earnings report which saw shares in the famous automaker soar overnight thanks to strong pickup truck sales. Adjusted earnings per share (EPS) came in at a whopping $0.65 versus $0.19 expected, on revenue of $34.71 billion versus $33.51 billion estimated, while net income doubled year-over-year (YoY) to $3.6 billion. Ford recorded its best third-quarter pickup sales in 15 years as demand for trucks industrywide outpaced supply, with the economy clawing back from the pandemic pause. Ford’s shares remain down by 17% so far this year. Get Ford’s official press release here.
3. Pinterest’s (PINS) stock price soared more than 15% after hours on Wednesday as the company posted strong revenue and user growth in its third-quarter earnings. Adjusted earnings per share came in at an impressive $0.13 versus $0.03 expected, on revenue of $443 million versus estimates of $383.5 million, while monthly active users (MAUs) also surpassed expectations with 442 million. Similar to Snap Inc’s (SNAP) claims last week, Pinterest said that it saw an increase in spend from advertisers that took part in the #StopHateForProfit Facebook (FB) ad boycott over the summer. Read the official press release here.
Find more earnings from last night here:
The machine manufacturer beat expectations with EPS of $0.49 on revenue of $251 million, up from $0.24 per share on $183 million in the year-ago period. “We are proud of the substantial revenue growth and operating margin expansion that we achieved this quarter,” said Robert J. Willett, Chief Executive Officer of Cognex. Read more here.
Cognizant Technology Solutions Corp (CTSH)
The New Jersey-based tech firm far surpassed Wall Street estimates with revenue of $4.24 billion in Q3, with EPS of $0.64 — net income was $348 million. Cognizant expects full-year earnings in the range of $3.63 to $3.67 per share, with revenue expected to be $16.7 billion. Read more here.
Selling custom masks must be profitable as vintage e-commerce site Etsy smashed expectations after reporting a third-quarter profit of $91.8 million, or $0.70 per share. Etsy’s revenue soared 128% from the year-ago quarter to $451.5 million, in addition to gross merchandise sales jumping 119% to $2.6 billion. Read more here.
Shares in Mastercard fell Wednesday after the payments leader missed estimates with EPS of $1.60 on revenue of $3.84 billion, down from the $4.47 billion posted in Q3 2019. The company disclosed that gross dollar volume rose 1% in the quarter, while cross-border volume fell 36%. “We are seeing encouraging progress in the trajectory of domestic spending, while travel spending remains a challenge,” Chief Executive Ajay Banga said in a release. Read more here.
The leading digital workflow company beat the Street after posting Q3 revenue of $1.15 billion, up 30% from a year ago, with EPS of $1.21, above the Wall Street consensus at $1.03 a share. ServiceNow CFO Gina Mastantuono added that the company sees “strong momentum heading into the last quarter of the year,” with its forecast Q4 subscription revenue rising to between $1.155 billion and $1.16 billion. Read more here.
Despite remaining unprofitable, the telehealth leader still beat analyst estimates with losses per share of $0.13, compared to losses of $0.39 a year ago, on revenue of $288.81 million. The big win for Teladoc, which last-quarter announced the acquisition of Livongo Health, was its tripling YoY of quarterly visits to 2.8 million. Read more here.
Texas Roadhouse (TXRH)
Not something that every restaurant chain can boast right now, Texas Roadhouse reported Q3 net profit of $29.2 million, or $0.42 per share, on total revenue of $631.2 million, topping estimates. However, comparable restaurant sales decreased 16.0% at domestic company restaurants and 16.8% at domestic franchise restaurants, thanks to the ongoing pandemic. Read more here.
There are 16 companies on the MyWallSt shortlist that will report earnings today.
Get this week’s full calendar here.