U.S. Movers: Arm Holdings, Lyft, MGM Resorts, Walt Disney

Scott Peters
09 Nov, 2023
New York City

Lyft declined 3.3% to $10.30 after the digital ride hailing company reported weaker-than-expected quarterly results and guided that weak bookings are expected to persist in the current quarter.

Revenue in the third quarter increased to $1.15 billion from $1.05 billion, net loss shrank to $12.1 million from $422.2 million, and diluted loss per share dropped to 3 cents from $1.18 a year ago.

Active riders increased to 22.4 million from 20.3 million, and revenue per active rider edged slightly lower to $51.67 from $51.88 a year ago.

The rebound in travel was reflected in the gross bookings for the ride services during the quarter.

Gross bookings jumped to $3.55 billion from $3.08 billion, and the company offered bookings to range between $3.6 billion and $3.7 billion in the fourth quarter.

The company lowered its growth outlook in the current quarter to grow in "mid-single-digits" from the previous quarter, and as a percentage of revenue, the fourth quarter adjusted EBITDA margin will be "roughly in line" with the 4% achieved in the second quarter.

Disney jumped 4.3% to $88.12 after the theme park operator and media company reported better-than-expected quarterly results and added plans to expand its cost reduction plans to $7.5 billion from $5.5 billion.

Revenue in the fiscal fourth quarter ending in September increased 5% to $21.2 billion from $20.2 billion, net income advanced to $694 million from $254 million, and diluted earnings per share rose to 14 cents from 9 cents a year ago.

Revenue in the entertainment segment, which includes television and streaming businesses, increased 2% to $9.5 billion; in the experiences segment, which includes theme parks, vacation clubs, and cruises, it rose 13% to $8.2 billion; and in sports, it was flat at $3.9 billion.

In the direct-to-consumer segment, which includes Disney+, Disney+ Hotstar, and Hulu, revenue increased 12% to $5.0 billion, and operating losses shrank to $420 million from $1.4 billion a year ago.

Arm Holdings dropped 6.2% to $51.0 after the advanced semiconductor chip maker reported mixed quarterly results and offered a muted outlook for the current quarter.

Total revenues in the fiscal second quarter ending in September increased 28% to $806 million from $630 million, but the company swung to a loss of $110 million from a profit of $114 million a year ago.

Diluted loss per share was 11 cents compared to earnings of 11 cents a year ago.

Remaining performance obligations, a measure of backlog, increased by 38% to $2.4 billion from $1.8 billion a year ago.

MGM Resorts advanced 3% to $39.85 after the hotel and casino operator reported better-than-expected quarterly results and the company announced its stock repurchase plan.

Revenue in the quarter increased to $3.97 billion from $3.4 billion, primarily because of a rebound in MGM China operations after the ending of COVID-related travel restrictions.

The company swung to net income of $211.8 million from $1.06 billion, and diluted earnings per share rose to 46 cents from a loss of $1.45 a year ago.

Las Vegas strip revenue, adjusted for the sale of The Mirage, decreased to $2.1 billion from $2.2 billion a year ago.

MGM China revenue soared to $813 million from $87 million, an increase of 829% from a year ago and 10% compared to the third quarter in 2019.

During the quarter, the company repurchased 13 million shares of its common stock for $572 million, and about $806 million are still available in the current stock repurchase plan.

The company's board also approved a new stock repurchase program of $2 billion, in addition to the existing February 2023 stock buyback plan.