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Q3 Earnings for Young Growth Companies: CAVA, CART, SPOT & More

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Tuesday, November 12, 2024

The S&P 500 couldn’t keep its winning streak intact today, dipping just -17 points or -0.29% on the day. The Nasdaq slipped an identical -17 points, which was down -0.09% for the session. The Dow performed worse (likely selling off some froth), -382 points or -0.86%. The small-cap Russell 2000 fell hardest: -1.77% at the close.

Bond yields were mildly warmer on the day, but are still climbing even after the equities markets take a breather. The 10-year yield is currently around +4.43% (or about 90 basis points higher than mid-September lows), with the 2-year right now perched at +4.34% (also close to the mid-point of 52-week highs and lows).

Don’t consider this anything more than the post-election euphoria beginning to dissipate. Wall Street may still be very happy for a Republican majority in the federal government (with a sub-60% majorities in both houses), but there’s only so far investors are willing to take things at this hour.
 

Q3 Earnings Roundup: Dig the New Breed (CAVA, CART, SPOT and More)


Zacks Rank #2 (Buy)-rated fast-casual restaurant and growth stock CAVA Group (CAVA - Free Report) is up +15% on its Q3 report after Tuesday’s close. Earnings of 15 cents per share outpaced the Zacks consensus by 4 cents, while $244 million in revenues improved over the $238 million expected. Same-store sales surged +18% in the quarter, ahead of the +12.2% expected, with guidance notably improved. The stock is +230% year to date!

Check out the updated Zacks Earnings Calendar here.

Spotify (SPOT - Free Report) shares are up +10% at this hour in late trading as well, with Q3 missing on both top and bottom lines: earnings of $1.45 per share was beneath the Zacks consensus by 30 cents, and $3.99 billion in sales was under the $4.37 billion forecast. But monthly users, premium subscriptions and gross margins are all pointing up. Shares of SPOT are +120% year to date.

San Francisco-based Instacart parent Maplebear (CART - Free Report) , a grocery delivery service with a Zacks Rank #2, easily surpassed expectations on both top and bottom lines: earnings of 42 cents per share on $852 million in revenues surged past the 22 cents on $845 million expected. Guidance was just in-line, however, which has sent shares -2% lower in the aftermarket. This stock is +101% year to date.

Skyworks Systems (SWKS - Free Report) also posted its Q3 earnings report after the close today, beating by 3 cents on the bottom line to $1.55 per share while coming in-line on the top line at $1.02 billion in quarterly revenues. Sales guidance for the current quarter are also in-line with previous estimates. Late-trading has the shares pretty flat after an initial jump.

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