U.S. Movers: Airbnb, DoorDash, Electronic Arts, Peloton Interactive, SolarEdge, Qualcomm

Scott Peters
02 Nov, 2023
New York City

Airbnb Inc. increased 0.9% to $120.50 after the vacation rental platform reported higher-than-expected third-quarter revenue but forecasted weaker-than-expected fourth-quarter revenue.

Revenue in the third quarter jumped 18% to $3.4 billion from $1.9 billion, net income before-tax advanced to $1.7 billion from $1.2 billion, and diluted earnings per share rose to $6.63 from $1.79 a year ago. 

After-tax income jumped to $4.4 billion from $1.21 billion, after adjusting for $2.7 billion tax benefit related to previous years. 

The company estimated fourth quarter revenue in the range of  $2.14 billion and $2.17 billion, representing growth from a year ago between 12% and 14%. 

The company also added that it is "seeing greater volatility early in the fourth quarter" and estimated nights booked growth in the fourth quarter to "moderate" from the third quarter and average daily rate "to be stable to slightly up" compared to the same period last year. 

Qualcomm Inc. jumped 6% to $118.0 after the advanced communication chip designer reported better-than-expected revenue and earnings in the fourth quarter ending on September 24. 

Revenue in the fourth quarter dropped 24% to $8.6 billion from $11.4 billion, net income plunged 48% to $1.5 billion from $2.9 billion, and diluted earnings per share dropped to $1.32 from $2.54 a year ago. 

The mobile communication chip maker also forecast higher-than-expected revenue in the fourth quarter, signaling a possible recovery in the microchip industry.

The company forecasted fiscal 2024 first quarter revenue between $9.1 billion and $9.9 billion and diluted earnings per share between $1.82 and $2.02. 

SolarEdge Technologies Inc. dropped 10.5% to $67.65 after the company reported weaker-than-expected sales in the third quarter and forecasted more weakness in the fourth quarter.

Revenue in the third quarter declined to $725 million and loss per share was 55 cents, and the company guided fourth quarter sales to drop in the range between $275 million and $320 million.

The demand for home solar installations nosedived on rising interest rates after California cut the compensation rate for solar incentive programs in April.

California is expected to announce similar compensation cuts for multifamily, farm, and school buildings, which could further dampen the demand.

Peloton Interactive Inc. dropped 6.5% to $4.50 after the company reported a wider-than-expected loss.

Revenue in the quarter fell 3% to $595.1 million from $616.5 million; net loss shrank to $159.1 million from $408.5 million; and diluted loss per share shrank to 44 cents from $1.20 a year ago.

The company forecasted revenue in the fiscal 2024 second quarter ending December in the range of $715 million and $750 million, a decrease of 8% from the midpoint of $793 million a year ago.

DoorDash Inc. jumped 16.5% to $88.46 after the company reported better-than-expected quarterly results.

During the quarter, total orders jumped 24% to 543 million from 439 million, and gross order volume soared 24% to $16.8 billion from $13.5 billion a year ago.

Revenue in the third quarter increased 27% to $2.2 billion from $1.7 billion, net loss shrank to $75 million from $296 million, and diluted loss per share decreased to 19 cents from 77 cents a year ago.

Free cash flow improved substantially in the quarter after the company benefited from rising sales and an improved cost structure.

Free cash in the quarter increased to $324 million and jumped to $878 million in the trailing twelve months.

The company also completed its stock repurchase program authorized in February through the repurchase of 12 million shares for $750 million.

The company estimated gross market volume in the fourth quarter in the range of $17.0 billion to $17.4 billion and adjusted operating earnings between $320 million and $380 million.

Electronic Arts Inc. advanced 4.4% to $129.20 after the company reported quarterly results.

Revenue in the third quarter edged up to $1.91 billion from $1.90 billion, net income edged up to $399 million from $299 million, and diluted earnings per share to $1.77 from $1.47 a year ago.

The company repurchased 2.6 million shares in the quarter for $325 million, bringing the total for the trailing twelve months to 10.5 million shares for $1.3 billion.

For the fiscal year ending in March, the company estimated net revenue in the range of $7.3 billion and $7.7 billion, net income between $1.118 billion and $1.273 billion, and diluted earnings per share between $4.10 and $4.66.

Fiscal year operating cash flow is expected to be between $1.95 billion and $2.10 billion.