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Big Afternoon for Earnings: PTON, SHAK, EXPE and More

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Markets surged into the close today, with all four major indexes closing in the green after fighting through some rough patches during the session. The Dow, now up for its fourth-straight day and +2% for the week, set another new all-time high close, +0.93%. The S&P 500 nearly matched this performance, +0.81%, for its own fresh record high close. The Nasdaq, still off the pace a bit, grew 0.37% on the day, while the small-cap Russell 2000 slid into the closing bell by an incredibly narrow +0.002%.

Meanwhile, earnings season continues at a rapid clip, with many more companies posting quarterly figures at the end of the regular trading session. Here are highlights of just a few:

Peloton (PTON - Free Report) , which made no mention of its recent recall of treadmills that caused several dozen injuries, did put up outperformance numbers on both its top and bottom lines for its fiscal Q3: a loss of ($0.03) per share easily surpassed the Zacks consensus -11 cents, while revenues of $1.26 billion in the quarter easily knocked out the $1.11 billion expected. The company offered no guidance for future quarters or fiscal years, however, which is likely a sign the company needs to readdress its situation in light of the recall.

This is the third straight earnings beat for the home fitness company, which was a major beneficiary of the “shelter in place” initiatives during the past pandemic year. Peloton has only missed earnings twice in the past five years, as subscriptions grew 135% and Connected Fitness Products brought in a very healthy $1.08 billion — notably ahead of the $880 million analysts were looking for. Shares are down 5% on the news.

Enterprise financial software firm Square (SQ - Free Report) vastly outperformed its Zacks consensus estimates for earnings and sales after Thursday’s close: 41 cents per share was 2.5x the 16 cents expected and way beyond the -$0.02 per share in the company’s year-ago quarter, on $5.06 billion in revenues which blasted the estimated $3.37 billion. This marks the fourth straight earnings beat for Square, which has only posted one earnings miss in nearly five years.

Shake Shack (SHAK - Free Report) shares are dropping 12% following its Q1 results released this afternoon. While earnings of 4 cents per share easily swept past the expected -8 cents, revenues of $155 million came up notably short of the $161.7 million in the Zacks consensus. Same-store sales in the quarter grew 5.7%, but Q2 revenue guidance of between 174-183 million were completely beneath the previous consensus of $184 million for next quarter.

Expedia (EXPE - Free Report) shares, on the other hand, are up 6.5% in late trading on top and bottom line beats: a loss of $2.02 per share in the quarter outperformed expectations by a solid 50 cents, while sales totaling $1.25 billion surpassed the $1.09 billion analysts were projecting. Its VRBO business, a direct competitor to Airbnb, has survived the challenging environment better than many of its other offerings, and expectations for brighter days in  the Travel & Leisure space are keeping optimism elevated.

File-sharing company Dropbox (DBX - Free Report) put up comparably modest beats on both earnings and sales for its Q1 release, with 35 cents per share topping expectations by 4 cents, on $512 million in revenues beating the $505 million anticipated and +12% year over year. Paid users surprised to the upside, to a total of 15.83 million. The company has never posted an earnings miss any quarter since its IPO in 2018.

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