We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Market indexes broke losing streaks across the board on Tuesday, with hopes for a new stimulus package passing through Congress still alight two weeks to the day ahead of the long-awaited General Election on November 3rd. The S&P 500 led the way, up 0.47% or 16.22 points, followed by the Dow +0.40% or 113 points. The Nasdaq, breaking a 5-day streak of lower closes, rose 0.33% or 37.51 points. The Russell 2000 saw small-cap names up 0.25% overall today.
Immediately after the closing bell, Netflix (NFLX - Free Report) shares have fallen 6% on a disappointing Q3 earnings report. While the headline numbers were mixed — $1.74 per share missed the Zacks consensus $2.13 (though was up from $1.47 per share a year ago), though sales in the quarter came in at $6.44 billion, ahead of the $6.39 billion expected — net subscription adds were a big disappointment. Whereas a quarter ago Netflix surprised to the upside with 10 million new subscribers, the company brought in 2.2 million in Q3, well below the 3.3 million anticipated.
Paid subscribers overall are now 195 million, a tad below expectations, as we see the boon from “shelter in place” pandemic initiatives exiting the Netflix story in the past quarter. Engagement per member household is up year over year, and clearly this is a company still moving in the right direction overall, albeit more slowly (revenue guidance for next quarter also dipped a bit). Netflix had not missed an earnings projection since Q3 2017 — three full years ago. For more on NFLX’s earnings, click here.
On the other side of Q3, Snap Inc. (SNAP - Free Report) shares are up 17% in late-market trading after its Q3 report was far better than expected. Swinging to earnings of $0.01 per share from estimates of -$0.06, on revenues of $679 million blowing the doors off the $551 million in the Zacks consensus, +52% year over year, were also positive catalysts. The company added 11 million Daily Active Users (DAU) in Q3, and the social media staple new predicts Q4 revenues up as much as 50%. For more on SNAP’s earnings, click here.
Texas Instruments (TXN - Free Report) joins the parade of Q3 surprises Tuesday afternoon, beating expectations on both top and bottom lines: $1.45 per share on $3.82 billion in revenues easily outpaced the $1.26 per share and $3.43 billion in sales expected. Guidance for next quarter was increased to earnings of $1.20-1.40 and revenues of $3.41-3.69 billion. Shares are up 1% in late trading, approaching the company’s all-time high share price reached just last week. For more on TXN’s earnings, click here.
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Q3 Earnings: Netflix (NFLX) Misses, SNAP (SNAP) & T.I. (TXN) Beat
Market indexes broke losing streaks across the board on Tuesday, with hopes for a new stimulus package passing through Congress still alight two weeks to the day ahead of the long-awaited General Election on November 3rd. The S&P 500 led the way, up 0.47% or 16.22 points, followed by the Dow +0.40% or 113 points. The Nasdaq, breaking a 5-day streak of lower closes, rose 0.33% or 37.51 points. The Russell 2000 saw small-cap names up 0.25% overall today.
Immediately after the closing bell, Netflix (NFLX - Free Report) shares have fallen 6% on a disappointing Q3 earnings report. While the headline numbers were mixed — $1.74 per share missed the Zacks consensus $2.13 (though was up from $1.47 per share a year ago), though sales in the quarter came in at $6.44 billion, ahead of the $6.39 billion expected — net subscription adds were a big disappointment. Whereas a quarter ago Netflix surprised to the upside with 10 million new subscribers, the company brought in 2.2 million in Q3, well below the 3.3 million anticipated.
Paid subscribers overall are now 195 million, a tad below expectations, as we see the boon from “shelter in place” pandemic initiatives exiting the Netflix story in the past quarter. Engagement per member household is up year over year, and clearly this is a company still moving in the right direction overall, albeit more slowly (revenue guidance for next quarter also dipped a bit). Netflix had not missed an earnings projection since Q3 2017 — three full years ago. For more on NFLX’s earnings, click here.
On the other side of Q3, Snap Inc. (SNAP - Free Report) shares are up 17% in late-market trading after its Q3 report was far better than expected. Swinging to earnings of $0.01 per share from estimates of -$0.06, on revenues of $679 million blowing the doors off the $551 million in the Zacks consensus, +52% year over year, were also positive catalysts. The company added 11 million Daily Active Users (DAU) in Q3, and the social media staple new predicts Q4 revenues up as much as 50%. For more on SNAP’s earnings, click here.
Texas Instruments (TXN - Free Report) joins the parade of Q3 surprises Tuesday afternoon, beating expectations on both top and bottom lines: $1.45 per share on $3.82 billion in revenues easily outpaced the $1.26 per share and $3.43 billion in sales expected. Guidance for next quarter was increased to earnings of $1.20-1.40 and revenues of $3.41-3.69 billion. Shares are up 1% in late trading, approaching the company’s all-time high share price reached just last week. For more on TXN’s earnings, click here.
Questions or comments about this article and/or its author? Click here>>
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>