Earnings Previews: Cloudflare, Enbridge, Lyft, PayPal
About half an hour after Wednesday’s opening bell, the Dow Jones industrials traded 0.35% lower, the S&P 500 was down 0.49% and the Nasdaq had retreated 0.45%. Equity prices were bouncing around and probably will until the petroleum inventory report is issued later in the morning.
After markets closed Tuesday, Enphase Energy beat estimates for both earnings per share (EPS) and revenue. Revenue rose by more than 75% year over year, and the company issued first-quarter guidance in line with expectations. Shares traded down about 0.4% early Wednesday.
Fortinet beat the consensus EPS estimate and missed on revenue. The company’s first-quarter guidance was in line with estimates, and its full-year guidance was slightly higher than analysts expected. Shares traded up 13.5% Wednesday morning.
Lumen beat both top-line and bottom-line estimates, but free cash flow fell from $776 million in the prior quarter to $126 million. Because the company eliminated its generous dividend, there was nothing to offset the decline in free cash flow, and fiscal-year guidance for cash came in low. Shares traded down more than 18%.
Before markets opened on Wednesday, CVS Health also topped estimates on the top and bottom lines. The company issued in-line guidance and shares traded up 3.9%.
Fox posted better-than-expected revenue and EPS. World Cup and NFL advertising boosted ad revenue by 4%. Shares traded up by about 6%.
Uber beat consensus estimates on both the top and bottom lines. CEO Dara Khosrowshahi said that Uber eventually would eliminate its stake in Chinese ride-sharing firm DiDi and that the company expects to have positive free cash flow in the “foreseeable future.” The stock traded up 3%.
Affirm, Disney, MGM Resorts and Robinhood are on deck to report quarterly results after U.S. markets close on Wednesday. First thing Thursday morning, AbbVie, Cameco, Canopy Growth and PepsiCo will report earnings.
Here is a look at what to expect when the following four firms report quarterly results after U.S. markets close Thursday or before they open on Friday.
Shares of cloud services provider Cloudflare Inc. (NYSE: NET) have tumbled by more than 45% in the past year. The stock dropped by almost $100 per share between its high in late March and its low in early November. Since the beginning of the year, the stock is up 29%, and more analysts have boosted their ratings on the stock since the company reported third-quarter earnings in November. Cloudflare was also an early adopter of artificial intelligence in its products, and that should give it a leg up as far as its marketing message goes. Cloudflare reports quarterly results late on Thursday.
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