RDDT, SMCI, GRMN, SNAP and more
Check out the companies making headlines in midday trading. Reddit – Shares soared 41% after the social media company reported a blockbuster third-quarter report . Reddit reported earnings of 16 cents per share, while analysts surveyed by LSEG had expected a loss of 7 cents. The company’s $348.4 million revenue also exceeded consensus estimates of $312.8 million. Reddit guided fourth-quarter revenue and adjusted earnings that beat the average analyst estimate. Super Micro Computer – The AI server stock shed 30% after revealing in a regulatory filing that its auditor EY resigned after raising concerns about the board’s independence and accounting practices. Garmin – Shares rose more than 23%, hitting a new 52-week high, following the company’s better-than-expected third-quarter results. For the period, Garmin posted pro forma earnings of $1.99 per share on $1.59 billion in revenue. That’s above the $1.45 per share on $1.44 billion in revenue that analysts polled by FactSet were expecting. The company also raised its full-year forecast. Eli Lilly – The stock plummeted more than 7% after the drug maker posted weaker-than-expected third-quarter earnings and cut its full-year outlook. Eli Lilly earned $1.18 per share, excluding items, on revenue of $11.44 billion. That’s below the consensus estimate of $1.47 per share and $12.11 billion in revenue, according to LSEG. XPO – Shares soared more than 13% on the backs of the logistics company topping Wall Street’s third-quarter expectations. XPO earned $1.02 per share, excluding items, while analysts polled by FactSet had expected 90 cents per share. Revenue, on the other hand, came in just ahead of expectations, with the company seeing $2.05 billion compared to the consensus estimate of $2.02 billion. Shake Shack – The stock moved nearly 14% higher, hitting a new 52-week high, after the burger chain’s quarterly results surpassed the Street’s expectations. For the third quarter, Shake Shack earned 25 cents per share, excluding items, on $316.9 million in revenue. Analysts surveyed by LSEG were expecting 20 cents per share on $316.1 million in revenue. Caesars Entertainment – The stock plunged more than 10% on the heels of the casino operator missing analysts’ expectations for the third quarter. In an earnings call with analysts, CEO Thomas Reeg said, “There’s still more headwinds than tailwinds for us. I think you’re looking at a year that’s down slightly to flat is my Regional expectation for next year.” Wingstop – Shares fell around 19% after the restaurant chain missed analysts’ expectations for the third quarter. Wingstop earned 88 cents per share, while analysts were looking for 95 cents per share, per LSEG. Chipotle – The fast casual chain’s stock slid more than 7% after the company missed the Street’s revenue estimates for the third quarter. Chipotle also missed expectations for same-store sales, seeing a 6% increase in the period compared to the 6.3% growth that analysts polled by StreetAccount were expecting. Alphabet – The search giant’s stock gained more than 5% following the Google parent’s stronger-than-expected third-quarter earnings . The company also saw strong cloud revenue growth for the period, notching nearly 35% gains from the prior-year period. Visa – The stock advanced nearly 4% following the global payments company’s earnings beat for the fiscal fourth quarter. Visa posted $2.71 in adjusted earnings per share on revenue of $9.62 billion. Analysts were expecting $2.58 per share on revenue of $9.49 billion, per LSEG. The company also increased its quarterly dividend by 13% to 59 cents . Qorvo – The semiconductor stock dove 24.6%. Weak earnings guidance for the current quarter appeared to pull attention from a better-than-expected report for the second fiscal quarter. Following the report, Raymond James downgraded its rating to market perform from outperform and removed its price target. Snap – Shares surged nearly 16% on the backs of a better-than-expected third-quarter earnings report and the announcement of a $500 million stock repurchase program. The social media platform posted 8 cents in adjusted earnings per share and revenue of $1.37 billion. Analysts were looking for 5 cents per share and $1.36 billion in revenue, according to LSEG. Advanced Micro Devices – Shares tumbled 9.5% after AMD gave guidance for fourth-quarter revenue of $7.5 billion, in line with analysts expectations, per LSEG. It also posted adjusted earnings per share for the third quarter that met expectations, while revenue beat estimates. VinFast Auto – The stock rose more than 2% after Bloomberg News, citing a person with direct knowledge of the matter, reported that a group of investors is going to invest at least $1 billion into the electric vehicle maker. The funding push is being led by Emirates Driving, according to the Bloomberg News source. Humana – The health insurance stock jumped more than 3% after a better-than-expected report for the third quarter. Humana generated $4.16 in adjusted earnings per share on $29.30 billion of adjusted revenue. Analysts surveyed by LSEG had penciled in $3.40 per share on $28.67 billion of revenue. First Solar – The solar stock dipped 1% after posting disappointing third-quarter earnings and revenue, and lowering its full-year guidance. First Solar reported per-share earnings of $2.91 on revenue of $887.7 million. Analysts polled by FactSet anticipated earnings of $3.16 per share on revenue of $1.08 billion. However, a number of Wall Street firms including Goldman Sachs and Bank of America reiterated buy ratings on the stock following the results, with Bank of America saying “don’t fret the noise.” — CNBC’s Alex Harring, Samantha Subin, Lisa Kailai Han, Sarah Min, Jesse Pound and Michelle Fox contributed reporting.
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