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Another Flat Day with Big Afternoon Earnings: ARM, ABNB & More
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Wednesday, May 8th, 2024
Markets were flat again this Hump Day. Over the past week or so of trading, the major indices have been treading water. For the past month, the Dow and the Nasdaq are marginally in the green, while the S&P 500 is marginally in the red and the small-cap Russell 2000 is -0.9%. For today’s session, the Dow scraped together +172 points, +0.44%, while the S&P was exactly 0.00%. The Nasdaq dipped a tad, -0.18%, while the Russell dropped -0.46%. For the Dow, it’s currently on the most tepid six-day winning streak ever.
Wholesale Inventories for March dropped to -0.4%, the lowest level since -0.5% in June of last year, and swinging to a negative month over month from the downwardly revised +0.2% for February. Lower inventory reads aren’t dire economic prints; in fact, they represent some of the worst growth an economy can have (once inventories are built up, if they do not sell right away, they must be rolled off over time). We’ve only had two positive Wholesale reads in the past year, averaging -2.6% over the past 12 months.
After today’s close, Arm Holdings (ARM - Free Report) reported fiscal Q4 earnings results. The recently re-publicly traded semiconductor design producer outperformed expectations on both top and bottom lines: earnings of 36 cents per share outpaced the Zacks consensus by 6 cents, while top-line sales of $928 million easily surpassed the $885 million analysts were looking for. Next-quarter guidance has been rasied to 32-36 cents per share from 31 cents previously, while full-year revenues of between $875-925 million has a higher median than the $882.5 million estimate. Yet shares are selling off -6% in late trading; that’s something that can happen when you’re +54% year to date: “sell the news.”
Airbnb (ABNB - Free Report) shares are also selling off following its quarterly results. Earnings of 43 cents per share on $2.14 billion in revenues shone past the 23 cents per share and $2.07 billion analysts were looking for. But revenues estimates for the current quarter came in $2.68-2.74 billion, below the previous target of $2.76 billion in the Zacks consensus. It marks the twelfth-straight earnings outperformance for the home-stay experiences provider, but shares are still sliding -8% in late trading.
The Trade Desk (TTD - Free Report) also beat on top and bottom lines this afternoon. The demand-side automation platform beat estimates by four cents to 26 cents per share (and above the 23 cents per share posted a year ago), while sales of $491 million amounts to a +28% positive surprise from $480 million expected. Revenues for the current quarter are anticipated to come in at $575 million or more, easily beating expectations for $570 million. Shares are up nearly +2% in the late session, adding to its +21% growth year to date.
Image: Bigstock
Another Flat Day with Big Afternoon Earnings: ARM, ABNB & More
Wednesday, May 8th, 2024
Markets were flat again this Hump Day. Over the past week or so of trading, the major indices have been treading water. For the past month, the Dow and the Nasdaq are marginally in the green, while the S&P 500 is marginally in the red and the small-cap Russell 2000 is -0.9%. For today’s session, the Dow scraped together +172 points, +0.44%, while the S&P was exactly 0.00%. The Nasdaq dipped a tad, -0.18%, while the Russell dropped -0.46%. For the Dow, it’s currently on the most tepid six-day winning streak ever.
Wholesale Inventories for March dropped to -0.4%, the lowest level since -0.5% in June of last year, and swinging to a negative month over month from the downwardly revised +0.2% for February. Lower inventory reads aren’t dire economic prints; in fact, they represent some of the worst growth an economy can have (once inventories are built up, if they do not sell right away, they must be rolled off over time). We’ve only had two positive Wholesale reads in the past year, averaging -2.6% over the past 12 months.
After today’s close, Arm Holdings (ARM - Free Report) reported fiscal Q4 earnings results. The recently re-publicly traded semiconductor design producer outperformed expectations on both top and bottom lines: earnings of 36 cents per share outpaced the Zacks consensus by 6 cents, while top-line sales of $928 million easily surpassed the $885 million analysts were looking for. Next-quarter guidance has been rasied to 32-36 cents per share from 31 cents previously, while full-year revenues of between $875-925 million has a higher median than the $882.5 million estimate. Yet shares are selling off -6% in late trading; that’s something that can happen when you’re +54% year to date: “sell the news.”
Airbnb (ABNB - Free Report) shares are also selling off following its quarterly results. Earnings of 43 cents per share on $2.14 billion in revenues shone past the 23 cents per share and $2.07 billion analysts were looking for. But revenues estimates for the current quarter came in $2.68-2.74 billion, below the previous target of $2.76 billion in the Zacks consensus. It marks the twelfth-straight earnings outperformance for the home-stay experiences provider, but shares are still sliding -8% in late trading.
The Trade Desk (TTD - Free Report) also beat on top and bottom lines this afternoon. The demand-side automation platform beat estimates by four cents to 26 cents per share (and above the 23 cents per share posted a year ago), while sales of $491 million amounts to a +28% positive surprise from $480 million expected. Revenues for the current quarter are anticipated to come in at $575 million or more, easily beating expectations for $570 million. Shares are up nearly +2% in the late session, adding to its +21% growth year to date.
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