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SNAP Tumbles 25% on Q3 Sales Miss; CMG Beats, INTC Mixed

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For the S&P 500, reason to celebrate this Thursday afternoon: a new all-time high closing price at the bell, +0.30% to a hair under 4550. It’s also enjoying its seventh straight up-day, and the first record close since September 2 — back when the S&P was making a habit of such things. The Nasdaq won the day among the major indexes, +0.62%, while the small-cap Russell 2000 reached +0.28%. The Dow was the lone down index on the day, but it’s basically flat: -0.02%.

After the close, Snap Inc. (SNAP - Free Report) is tumbling on a revenue and guidance miss in the social media company’s Q3 earnings report, initially -22% and now -30%. While the company did post a big beat on its bottom line — 17 cents per share versus expectations and the previous year’s quarter of 11 cents — sales of $1.07 billion, while up more than 50% year over year, missed the Zacks consensus $1.09 billion. Even worse, Q4 revenue guidance of $1.12-1.20 billion is well off pace from the $1.36 billion analysts were seeing.

Snap cited supply chain and workforce issues, as well as a negative impact from its Apple (AAPL - Free Report) iOS ads, as the reason for the miss and lower guide. The company did improve on Daily Active Users (DAU) — 306 million versus 302 million expected (though shy of the 312 million “whisper number”). Basically, investors were looking for Snap to kill it in Q3, and once it didn’t, that 51% year-to-date growth started looking awfully expensive.

Better news from Chipotle (CMG - Free Report) , which beat estimates on both top and bottom lines in its Q3 report after today’s close: earnings of $7.02 per share on revenues of $1.95 billion surpassed the $6.23 per share and $1.94 billion, respectively, in the Zacks consensus. Same-store sales grew +15.1%, an improvement on the 14% expected — with Q4 guidance for comps looking to come in at low-to-mid double digits. Digital sales continue to grow, now accounting for 42.8% of total sales. Shares are +2& in late trading.

Intel (INTC - Free Report) shares are selling off this afternoon, however, as the chip major beat big on the bottom line — $1.71 per share versus $1.11 estimated — while missing on the top: $18.1 billion was below the $18.22 billion in the Zacks consensus, which itself was lower than the year-ago quarter. Even worse, guidance for next quarter earnings have been lowered to 90 cents per share, from the $1.02 analysts had been looking for. Shares are down more than -7%, even with Q4 revenue guidance slightly higher than previously anticipated.

As you can see, we’re getting a wide range of Q3 earnings performance, to match our wide range of industries accounted for as earnings season gets heavier for the next few weeks. Overall, we’ve seen more strength in companies’ abilities to overcome things like supply shortages and higher wages cutting into margins, but, as we see from some of the companies reporting this afternoon, some are indeed falling prone to the realities of an economy still building back from a global pandemic.

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