Newsletter Stories

Earnings Season Continues to Spawn Beefy Moves In Reporting Companies

earnings season Q2
Remember when investors were concerned about earnings season? Yeah, we don’t either…

Jokes aside, we’re well into the thick of Q2 2022 earnings – and it’s showing its true colors (spoiler alert: they’ve been pretty positive so far.)

It’s hard to draw broad-brush conclusions about what that means just yet. However, one thing is certain: some firms are moving pretty aggressively. Here’s a shortlist of the firms which have reported this week making big moves:

Robinhood Markets

By now, many investors are well-aware that Robinhood is doing another round of layoffs. You hate to see it as somebody who empathizes with those who will be shown to the door, but investors actually love when this happens.

The company reported earnings yesterday (which were not good, by the way) and its stock rose more than 12% in trading on the layoff news. That’s because labor, as important as it is, is really expensive. Removing some of that cost means more net income and more value for shareholders. And in notable figures:

  • Revenues were down -44% YoY to $318 million. Most of that revenue was derived from “transaction-based revenues.”
  • The company lost 1.9 million Monthly Active Users (MAUs), with that figure dropping to 14 million. The company had 22.9 million “funded accounts”, which rose by 100,000 in the quarter.

Avis Budget Group

Car rental giant Avis Budget dipped after one of its best earnings season reports ever was released on Monday. The company fell -12% after showing 37% YoY growth in sales. It was the company’s “best quarter revenue” ever, but they offered a less optimistic outlook for the coming quarter. It has recovered a healthy portion of those losses this week. It’s now down just -5% since its earnings report.

Pinterest

On Monday, Pinterest showed its work too – the company climbed nearly 20% after reporting a growing user count and ad revenue. It also picked up a huge activist shareholder in Elliott Management, which is now the company’s largest shareholder. Pinterest has been able to buck a trend we’ve seen afflicting ad-focused social platforms, giving it a lot of wind in its sails.

SoFi Technologies

SoFi, the lender-turned-neobank-turned-actual bank, popped more than 27% after its earnings reports. It comes weeks after the company diluted shareholders and after the company reported disappointing student loans data. It can credit a strong beat for that optimism.

Related: Banks Continue March In Q2 Earnings.

Moderna

Moderna was one of the most explosive growth stocks of the pandemic… and for good reason. The vaccine newcomer became the first company to score authorization for its novel mRNA COVID-19 vaccine. It also has a slew of other mRNA-based vaccines and therapies on the horizon. It popped more than 17% today after reporting more than $4.5 billion in sales on its COVID-19 vaccine. In notable figures: 

  • It’s buying back $3 billion worth of shares, which is possible thanks to the $18 billion of cash on its balance sheet. 
  • The company took a $500 million write-down on vaccine inventory which expired or is expected to expire.
  • Moderna cashed a $1.74 billion deal with the U.S. for 66 million doses of its new COVID vaccine to target new variants.

Subscribe for more stories. 

Track your Stocks & Crypto in one place

Download Front