Etsy Inc declined 9.6% to $86.88 after the company reported second quarter earnings that met analysts' estimates but forecasted revenue in the third quarter below expectations. 

Consolidated revenue in the second quarter increased 7% to $629 million from $585.1 million and net income declined 15.3% to $61.9 million from $73.1 million and diluted earnings per share fell to 45 cents from 51 cents a year ago. 

The company operates three online platforms, Etsy, Reverb and Depop and reports consolidated results. 

Gross merchandise sales inched lower 0.6% to $3.01 billion from $3.02 billion and number of active sellers increased 12.3% to 8.3 million and active buyers rose 2.5% to 96.2 million. 

The company guided third quarter gross market sales between $2.95 billion and $3.1 billion and revenue between $610 million and $645 million. 

03 Aug, 2023

PayPal Holdings Inc declined 8.8% to $66.70 despite the company meeting earnings expectations set by some investors. 

The payment processing company said second quarter revenue increased 7% to $7.29 billion and the company swung to net income of $1 billion from a loss of $341 million and diluted earnings per share was 92 cents compared to a loss of 29 cents a year ago. 

Total payment volume increased 11% to $376 million from $339.8 million a year ago. 

PayPal forecasted third quarter revenue to increase 8% to $7.4 billion and diluted earnings per share between 85 cents and 87 cents.  

The company anticipated stock repurchase in the current year to reach $5 billion. 

PayPal and KKR announced an exclusive multi-year relationship for European buy now, pay later and under the terms of the agreement, private credit funds and accounts managed by KKR will purchase up to €40 billion of current and future BNPL loans originated in the UK and other European countries. 

The deal is expected to close in the second half and upon closing PayPal expects to receive proceeds of $1.8 billion.

03 Aug, 2023

Qualcomm Inc plunged 9.6% to $116.80 after the semiconductor chipmaker reported weaker-than-expected revenue in the fiscal third quarter and forecasted lighter-than-expected revenue in the current quarter. 

Revenue in the fiscal third quarter ending on June 25 declined 23% to $8.5 billion from $10.9  billion and net income declined to $1.8 billion from $3.7 billion and diluted earnings per share dropped to $1.60 from $3.29 a year ago. 

Revenue for smartphone chipsets declined 25% to $5.2 billion and automotive applications rose 13% to $434 million and for connected devices dropped 25% to $1.5 billion from $1.95 billion a year ago. 

Demand for smartphones in China has not rebounded to the projected levels and the China region accounts for about 61% of Qualcomm sales. 

Qualcomm Inc said overall smartphone shipments are expected to decline in high single-digit percentage rate in 2023. 

03 Aug, 2023

DoorDash Inc increased 0.6% to $86.50 after the delivery company reported better-than-expected revenue in its latest quarter. 

Revenue in the second quarter increased 33% to $2.2 billion from $1.6 billion and net loss in the quarter shrank to $172 million from $263 million and diluted loss per share eased to 44 cents to 72 cents a year ago. 

Gross market volume increased 26% to $16.5 billion from $13.1 billion and total orders increased 25% to 532,000 from 426,000 a year ago. 

03 Aug, 2023

Starbucks Corp increased 0.8% to $102.03 after the coffee chain operator reported higher-than-expected sales in the fiscal third quarter on a sales rebound in China. 

Sales at stores open at least 13 months in China soared 46% from a year ago, after Covid-restrictions ended. 

Global comparable store sales increased 10% and the U.S. and North American comparable store sales increased 7% from a year ago. 

Revenue in the quarter ending on July 2 rose 12% to $9.2 billion and  the company opened 588 net new stores in the quarter, increasing the worldwide total to 37,000. 

Net earnings attributable to shareholders increased to $1.1 billion from $913 million and diluted earnings per share rose to 99 cents from 79 cents a year ago. 

China is expected to drive future sales growth as the company pushes to open more stores in smaller cities of the nation with 1.4 billion people with a preferred hot beverage tea over coffee. 

At the end of the third quarter, stores in the U.S. and China comprised 61% of the company’s global portfolio, with 16,144 and 6,480 stores in the U.S. and China, respectively.

 

02 Aug, 2023

Match Group Inc jumped 1.7% to $47.95 after the online dating site reported strong increase in sales and earnings in the second quarter and forecasted sales are likely to be ahead of market expectations. 

Total revenue in the second quarter rose 4% to $830 million and the company swung to a net income of $137.3 million from a loss of 32.3 million and diluted earnings per share was 48 cents from (11 cents) a year ago. 

Total paying subscribers declined 5% to 15.6 million from 16.4 million and average revenue per subscriber rose to $17.41 from $15.86 a year ago.  

02 Aug, 2023

Advanced Micro Devices, Inc decreased 1.1% to $116.30 after the semiconductor chipmaker reported stronger-than-expected sales and earnings in the second quarter but forecasted weaker-than-expected third quarter sales. 

Revenue declined 18% to $5.4 billion from $6.6 billion and net income plunged 94% to $27 million from $447 million and diluted earnings per share dropped to 2 cents from 27 cents a year ago. 

Data center revenue driven by enterprise sales dropped 11% to $1.3 billion, client segment revenue which includes PC related sales plunged 54% to $998 million and gaming segment revenue declined 4% to $1.6 billion. 

02 Aug, 2023

Ferrari NV increased 1.3% to $321.69 after the maker of luxury sports cars lifted its annual outlook and reported better-than-expected quarterly earnings. 

Net revenue in the second quarter increased 14% to Є1.4 billion and vehicle shipments declined 2% to 3,392 compared to 3,455 a year ago. 

Adjusted net profit increased 33% to Є334 million from Є251 million and adjusted diluted earnings per share increased 35% to Є1.83 from Є1.36 a year ago. 

Vehicle shipments in the Europe, Middle East and Africa region jumped 17% to 1,638, in North America declined 17% to 869, in the Greater China region dropped 5% to 339 and the rest of Asia fell 16% to 546. 

Ferrari revised 2023 revenue forecast to Є5.8 billion from the previous estimate of Є5.7 billion and higher than Є5.6 billion in 2022. 

The vehicle maker also revised higher diluted adjusted earnings per share range between Є6.25 and Є6.40 from the previous range between Є6.0 and Є6.20 compared to Є5.09 in 2022. 

02 Aug, 2023

ZoomInfo Technologies Inc dropped 25.6% to $19.0 after the company forecasted a decline in revenue in the third quarter. 

Revenue in the second quarter increased 16% to $308.6 million from $267.1 million and net income rose to $38.1 million from $15.9 million and diluted earnings per share advanced to 9 cents from 4 cents a year ago. 

The company guided third quarter revenue between $309 million and $312 million.  

The company revised lower fiscal year 2023 revenue range between $1.275 billion and $1.285 billion from the previous range of $1.225 billion and $1.235 billion. 

03 Aug, 2023

Arista Networks, Inc soared 22% to $186.86 after the company reported higher-than-expected sales and earnings in the second quarter and also estimated higher-than-expected third quarter sales. 

Second quarter sales increased to $1.5 billion from $1.1 billion and net income jumped to $491.9 million from $299 million and diluted earnings per share advanced to $1.55 from 94 cents a year ago. 

The company forecasted third quarter revenue between $1.45 billion and $1.50 billion and non-GAAP margin of 62%. 

01 Aug, 2023

Pfizer Inc increased 0.9% to $36.27 after the pharmaceutical company reported mixed quarterly results in the second quarter. 

Revenue in the second quarter declined 54% to $12.7 billion from $27.7 billion and net income plunged 77% to $2.3 billion from $9.9 billion and diluted earnings per share dropped to 41 cents from $1.43 a year ago. 

Expected decline in Paxlovid and Comirnaty (Covid vaccine) revenues drove a 53% decline in operating revenues. 

01 Aug, 2023

Uber Technologies declined 4.6% to $47.11 after the company said gross bookings rose 16% to $33.5 billion and reported quarterly profit of 18 cents a share. 

Revenue in the second quarter rose 14% to $9.2 billion from $8.1 billion a year ago. 

The company swung to operating profit of $326 million from a loss of $726 million, first ever operating income on GAAP basis.

Net income attributable to shareholders was $324 million compared to a loss of $2.6 billion and diluted earnings per share was 18 cents compared to ($1.33) a year ago. 

01 Aug, 2023

Caterpillar Inc soared 7.2% to $283.09 after the heavy equipment maker reported higher sales on rising demand in the second quarter. 

Revenue in the second quarter increased 22% to $17.3 billion from $14.2 billion and net income rose to$2.9 billion from $1.7 billion and diluted earnings per share advanced to $5.67 from $3.13 a year ago. 

The company reported sales increase in all regions of the world and sales in North America rose 31% to $1.3 billion and jumped in Asia Pacific increased 18% to $1.1 billion. 

Sales in the oil and gas industry jumped 43% to $1.7 billion and power generation soared 39% to $1.6 billion. 

01 Aug, 2023

Movers: DoorDash, Etsy, PayPal, Qualcomm, Shopify, Southwest Airlines

Scott Peters
03 Aug, 2023
New York City

DoorDash Inc increased 0.6% to $86.50 after the delivery company reported better-than-expected revenue in its latest quarter. 

Revenue in the second quarter increased 33% to $2.2 billion from $1.6 billion and net loss in the quarter shrank to $172 million from $263 million and diluted loss per share eased to 44 cents to 72 cents a year ago. 

Gross market volume increased 26% to $16.5 billion from $13.1 billion and total orders increased 25% to 532,000 from 426,000 a year ago. 

Qualcomm Inc plunged 9.6% to $116.80 after the semiconductor chipmaker reported weaker-than-expected revenue in the fiscal third quarter and forecasted lighter-than-expected revenue in the current quarter. 

Revenue in the fiscal third quarter ending on June 25 declined 23% to $8.5 billion from $10.9  billion and net income declined to $1.8 billion from $3.7 billion and diluted earnings per share dropped to $1.60 from $3.29 a year ago. 

Revenue for smartphone chipsets declined 25% to $5.2 billion and automotive applications rose 13% to $434 million and for connected devices dropped 25% to $1.5 billion from $1.95 billion a year ago. 

Demand for smartphones in China has not rebounded to the projected levels and the China region accounts for about 61% of Qualcomm sales. 

Qualcomm Inc said overall smartphone shipments are expected to decline in high single-digit percentage rate in 2023. 

PayPal Holdings Inc declined 8.8% to $66.70 despite the company meeting earnings expectations set by some investors. 

The payment processing company said second quarter revenue increased 7% to $7.29 billion and the company swung to net income of $1 billion from a loss of $341 million and diluted earnings per share was 92 cents compared to a loss of 29 cents a year ago. 

Total payment volume increased 11% to $376 million from $339.8 million a year ago. 

PayPal forecasted third quarter revenue to increase 8% to $7.4 billion and diluted earnings per share between 85 cents and 87 cents.  

The company anticipated stock repurchase in the current year to reach $5 billion. 

PayPal and KKR announced an exclusive multi-year relationship for European buy now, pay later and under the terms of the agreement, private credit funds and accounts managed by KKR will purchase up to €40 billion of current and future BNPL loans originated in the UK and other European countries. 

The deal is expected to close in the second half and upon closing PayPal expects to receive proceeds of $1.8 billion.

Etsy Inc declined 9.6% to $86.88 after the company reported second quarter earnings that met analysts' estimates but forecasted revenue in the third quarter below expectations. 

Consolidated revenue in the second quarter increased 7% to $629 million from $585.1 million and net income declined 15.3% to $61.9 million from $73.1 million and diluted earnings per share fell to 45 cents from 51 cents a year ago. 

The company operates three online platforms, Etsy, Reverb and Depop and reports consolidated results. 

Gross merchandise sales inched lower 0.6% to $3.01 billion from $3.02 billion and number of active sellers increased 12.3% to 8.3 million and active buyers rose 2.5% to 96.2 million. 

The company guided third quarter gross market sales between $2.95 billion and $3.1 billion and revenue between $610 million and $645 million. 

Southwest Airlines Company declined 2.3% to $32.60 and extended a 4-day loss after the regional airline reported mixed quarterly results. 

Revenue in the second quarter increased 4.6% to $7.6 billion from $6.7 billion and net income fell 10.1% to $683 million from $760 million and diluted earnings per share dropped to $1.08 from $1.20 a year ago. 

The company guided revenue per available set miles in the third quarter declined between 3% and 7% because of tough comparison with the previous year's demand driven by pent-up demand for travel after the ending of Covid restrictions.  

Shopify Inc decreased 4.7% to $59.28 after the online shopping platform for sellers reported higher sales and gross merchandise volume but quarterly loss expanded.  

Revenue in the second quarter increased 31% to $1.7 billion from $1.3 billion and net loss rose to $1.3 billion from $1.2 billion and diluted loss per share expanded to $1.02 from 95 cents a year ago. 

Gross merchandise volume rose 17% to $55 billion from a year ago and gross payment volume rose to $31.7 billion, which increased to 58% of GMV from 53% in the second quarter a year ago. 

U.S. Stocks Face More Headwinds, Treasury Yields Soar to 9-month Highs

Barry Adams
03 Aug, 2023
New York City

Market indexes drifted lower for the second day following the U.S. long-term debt rating downgrade and investors focused on another batch of earnings. 

Southwest, DoorDash, PayPal, Etsy and Qualcomm were among the leading companies reporting earnings and about 600 companies are expected to release earnings before the end of the week. 

Stocks have been under pressure after Fitch Ratings cut the U.S. long term debt rating by one notch citing expected "fiscal deterioration" over the next three years as the U.S. government ramps up borrowing. 

 Treasury yields spiked to the levels last seen in November as bond traders worry that the Fed will struggle to bring down inflation below 3%. 

In addition, the U.S. Treasury plans to borrow at elevated pace for the next  five months and to finance its growing budget deficit. 

In overseas news, investors also reviewed the Bank of England lifting its key policy rates by 25 basis points and held out for more rate hikes if inflation stays elevated. 

The Bank of England also lowered its inflation outlook by the end of 2023 to 5% and forecasted inflation to drop to 2% level by the second quarter of 2025.  

The Euro Area inflation turned negative for the second month in June and dropped to the lowest level in the last three years. 

U.S. Indexes & Yields 

The S&P 500 index traded down 0.5% to 4,491.40 and the Nasdaq Composite declined 0.3% to 13,933.52. 

The yield on 2-year Treasury notes increased to 4.91%, 10-year Treasury notes inched higher to 4.14% and 30-year Treasury bonds edged down to 4.29%. 

Crude oil increased $0.40 to $79.88 a barrel and natural gas prices increased 4 cents to $2.51 a thermal unit. 

U.S. Stock Movers 

DoorDash Inc increased 0.6% to $86.50 after the delivery company reported better-than-expected revenue in its latest quarter. 

Qualcomm Inc plunged 9.6% to $116.80 after the semiconductor chipmaker reported weaker-than-expected revenue in the fiscal third quarter and forecasted lighter-than-expected revenue in the current quarter. 

Demand for smartphones in China has not rebounded to the projected levels and the China region accounts for about 61% of Qualcomm sales. 

Qualcomm said overall smartphone shipments are expected to decline in high single-digit percentage rate in 2023. 

PayPal Holdings declined 8.8% to $66.70 despite the company meeting earnings expectations set by some investors. 

The payment processing company posted adjusted earnings in the second quarter of $1.16 a share and revenue of $7.29 billion. 

Etsy Inc declined 9.6% to $86.88 after the company reported second quarter earnings that met analysts' estimates but forecasted revenue in the third quarter below expectations.