Friday’s Headlines: Etsy Unmasks Its Earnings Beat
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
TrueCar (TRUE) +5.2%
Twitter (TWTR) +3.7%
Hasbro (HAS) +1.0%
iRobot (IRBT) +1.0%
Baozun (BZUN) +0.8%
Moving Down ⬇️
Redfin (RDFN) -19.6%
Teladoc (TDOC) -13.7%
Tripadvisor (TRIP) -12.2%
Chuy's (CHUY) -10.9%
Spotify (SPOT) -9.5%
1. Shares in Etsy (ETSY) jumped after-hours following its better-than-expected Q4 earnings. The vintage craft supplier recorded earnings of $1.08 per share on revenue of $617.4 million — up 129% year-over-year (YoY) — while also boasting 61 million new buyers. Etsy was one of the greatest beneficiaries of the pandemic as stuck-at-buy shoppers turned to e-commerce platforms, with face masks alone accounting for 4% of its total gross merchandise in Q4. CEO Josh Silverman did warn that Etsy’s growth will likely temper this year, but explained: “We have more conviction than ever to invest in our business for the long-term.” Read the full press release here.
2. Shares in Twitter (TWTR) jumped 4% yesterday following a host of positive announcements from the social media company. Twitter plans to grow its monetizable daily active users (mDAUs) to 315 million by the end of 2023 and double its revenue to $7.5 billion in the same year. This is the first time that Twitter has set long-term goals, with CEO Jack Dorsey also unveiling a paid ‘Super Follower’ feature, which will allow users to subscribe to their favorite creators in exchange for exclusive content. You can read more on the story here.
3. Dungeons & Dragons fans can rejoice after Hasbro (HAS) shared its plans for dozens of new films and television shows during its investor day yesterday. Shares rose following this news, as well as plans for unscripted projects based on Monopoly, Mouse Trap, Easy Bake, Operation, Nerf and Play-Doh. After the toy maker's $3.8 billion acquisition of Entertainment One in 2019, the company has been able to triple its number of entertainment projects ranging from theatrical releases to competition shows. CEO Brian Goldner confidently stated: “Sometime between 2022 and 2023, you should see two to three movies every year from us and three to four streamed shows.” Read more on Hasbro’s investor day event here.
Some more earnings from yesterday:
American Tower (AMT)
The cell-tower REIT reported a mixed Q4 after missing analyst forecasts on EPS of $0.82 but surpassed estimates with revenue of $2.12 billion — up 10.3% YoY. CEO Tom Bartlett attributed this revenue growth during a difficult period for the company to solid organic growth, accretive acquisitions, and a record year of new site construction, along with improving margins. Read the official press release here.
Just after confirming it has reached a $1 billion deal to buy Innovyze on Wednesday, shares in the software maker fell as earnings outlook disappointed despite a sales and earnings beat. Autodesk reported adjusted earnings of $1.18 per share on sales of $1.04 billion, up 16% year-over-year (YoY), versus expectations of $1.07 on revenue of $1.01 billion. Read the full press release here.
As the pandemic continues to disrupt the event industry, it was no surprise the ticketing company came out with a quarterly loss of $0.22 per share on revenue of $26.66 million. Eventbrite co-founder Julia Hartz remained positive on the future of the company, saying: “With the strength and flexibility of our self-service platform, creators hosted 4.6 million events in 2020 that continued to bring people together in inventive ways, from virtual events to drive-ins to socially distanced experiences.” See the press release here.
Evolent Health (EVH)
Investors were pleased to see the healthcare company beat expectations with a loss of $0.01 per share on revenue of $271.9 million, up 15% on the same period in 2019. 2021 revenue expectations of between $830 million and $880 million reflect the optimism conveyed by CEO Seth Blackley, who believes that the company is well positioned to build upon the company’s new positive cash-flow. Read the official press release here.
Howard Hughes Corp (HHC)
It was an underwhelming showing from the real estate development and management company, which reported losses per share of $0.12 on revenue of $213.70 million — down 25% YoY. Looking ahead, the company hopes to capitalize on the acceleration of development opportunities within its moneymaking ‘master planned communities’, in response to growing market demand. Read the official press release here.
Monster Energy (MNST)
The energy drink giant managed to shrug off the effects of the ongoing pandemic by posting record fourth-quarter revenues of $1.2 billion — a 17.6% jump year-on-year. Management attributed this to a rise in at-home consumption, though on-site food service outlets remain challenged by restrictions. More here.
A 16% jump in sales to hit $10.9 million for the quarter was offset by a net loss of $220,000 for the quarter after turning a profit the year previous. However, much of this loss was attributed to the company's recent acquisition of LEEDS — the makers of investigative software for law enforcement. Management expects this acquisition to add as much as $10 million to the company's top-line in the coming year. More here.
Shares in the human resource management company fell after the bell last night, despite beating estimates with a loss of $0.30 per share on revenues of $1.13 billion. The sell-off can be attributed to a weaker outlook for the coming year, with revenue growth of 165 expected by management. More here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Huazhu Group (HTHT)
Get this week’s full earnings calendar here.