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3 Stocks Soaring to Multi-Month Highs After Earnings

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Broad market indexes were down slightly through early afternoon trading hours Wednesday, but a number of notable stocks surged to key multi-month highs on the back of better-than-expected earnings results.

The biggest surprise of the day is Snap (SNAP - Free Report) , which posted its latest results on Tuesday afternoon. The embattled social media company reported revenue growth of 36.4%, surpassing analyst estimates and its own guidance range on the back improved user trends.

The Snapchat parent, which has struggled to maintain users amid competition from Facebook’s Instagram, said that daily active users (DAUs) in the quarter totaled 186 million. This is down about 1% from the year-ago period but unchanged sequentially and above expectations.

The recent quarter’s performance resulted in an adjusted loss of 4 cents per share, narrower than both the Zacks Consensus Estimate of a loss of 8 cents and the year-ago quarter’s loss of 13 cents. Investors were also optimistic about Snap’s engagement numbers and the early results of its Android app redesign.

Snap shares surged as much as 29% to touch an intraday high of $9.09 on Tuesday. This marked the highest level the stock has seen in at least three months. Snap still has a mountain to climb, as shortly after this time last year it was trading as high as $21.22 per share, but the company is finally moving in the right direction again.

Another pleasant surprise for investors Tuesday was Skyworks Solutions (SWKS - Free Report) . The specialty chip maker’s better-than-feared report was celebrated by semiconductor bulls, who were happy to lift the beaten-down stock about 12% to a three-month high of $87.48 a share.

At first glance, many of Skyworks’ numbers weren’t too great—revenue fell 8% year over year, margins contracted across the board, and earnings per share missed the consensus by a penny—but the report outperformed the company’s revised guidance and pointed to signs that a pullback in demand might run its course soon.

Management expects its challenges to continue in the ongoing quarter, but investors interpreted a newly-approved $2 billion share repurchase program as a bullish indicator meant to reward stockholders for being patient.

Wednesday’s other earnings success story was The New York Times Company (NYT - Free Report) ). Forget the multi-month highs here, as shares of the New York Times publisher skyrocketed to a 13-year high on the back of its earnings results and ambitious plans for the future.

NYT said today that it added 265,000 digital subscriptions last quarter, its biggest quarterly increase since right after the 2016 U.S. elections. The company ended the quarter with 3.4 million digital subscriptions, putting it three-quarters of the way to a five-year goal of doubling digital revenue after just three years.

Overall, fourth-quarter revenue at NYT surged 10%, excluding the impact of 2017’s extra week, with subscription revenue up 5% and ad sales up 11%. At one point today, the stock was up nearly 14% to $30.60 per share.

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