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Post-Market Stock Movements: Disney, Wynn Resorts, AppLovin, Illumina, The Trade Desk, and Sonos
Several companies made significant moves in extended trading, following the release of their quarterly results. Among them were entertainment behemoth Disney, casino operator Wynn Resorts, game developer AppLovin, DNA sequencing company Illumina, advertising technology firm The Trade Desk, and wireless speaker manufacturer Sonos.
Disney: Mixed Results and Subscriber Decrease
Disney, the entertainment giant, saw a roughly 5% increase in extended trading after releasing mixed quarterly results. The company reported adjusted earnings of $1.03 per share, surpassing the 95 cents expected by analysts according to Refinitiv. However, revenue fell slightly short at $22.33 billion, compared to the expected $22.5 billion. Disney also reported a roughly 7% decrease in Disney+ subscribers during the period and announced an increase in streaming prices.
Wynn Resorts: Beating Expectations
Wynn Resorts' stock rose 2.5% on second-quarter results that exceeded expectations on both the top and bottom lines. The casino operator reported adjusted earnings of 91 cents per share on revenues of $1.60 billion, ahead of the 59 cents and $1.54 billion expected by analysts, per Refinitiv.
AppLovin: Strong Results and Optimistic Guidance
Shares of game developer AppLovin surged 22% on strong second-quarter results and optimistic third-quarter revenue guidance. The company expects revenues for the third quarter to be between $780 million to $800 million, ahead of the $741 million expected by analysts. AppLovin posted earnings of 22 cents per share for the second quarter, surpassing the 7 cents expected by analysts, according to Refinitiv.
Illumina: Weaker-Than-Expected Guidance
Illumina, the DNA sequencing company, saw its shares drop more than 6% after the bell due to weaker-than-expected guidance. Despite exceeding Wall Street's expectations for the second quarter, the company anticipates some weakness in the second half due to a protracted recovery in China and increased caution in purchasing from customers. Illumina expects full-year revenues to rise 1% year over year, compared to the 7.1% increase analysts expected, per Refinitiv.
The Trade Desk: Better-Than-Expected Results
Shares of The Trade Desk lost nearly 4% after the bell, despite the advertising technology company posting better-than-expected quarterly results and slightly stronger-than-anticipated guidance for the current period. The company reported adjusted earnings of 28 cents per share on revenues of $464 million, topping the 26 cents per share on $455 million in revenue expected, according to Refinitiv.
Sonos: Strong Results and Raised Guidance
Sonos, the wireless speaker maker, saw its stock jump 11% in extended trading on stronger-than-expected results. The company reported a smaller-than-expected loss of 18 cents per share on revenues totaling $373 million. Analysts surveyed by Refinitiv had anticipated a 20-cent loss per share on revenues of $334 million. Sonos also raised its full-year EBITDA guidance.
Conclusion: Implications for New Businesses
The post-market stock movements of these companies offer valuable insights for new businesses. These movements, driven by quarterly results, highlight the importance of meeting or exceeding financial expectations.
Lessons from Disney and Wynn Resorts
Disney's mixed results and subscriber decrease demonstrate the risks associated with pricing strategies and market saturation. New businesses, especially in the streaming industry, need to carefully consider their pricing and growth strategies. Wynn Resorts' performance, on the other hand, underscores the rewards of exceeding financial expectations.
AppLovin's Success and Illumina's Challenges
AppLovin's surge in shares following strong results and optimistic revenue guidance illustrates the positive impact of robust performance and future optimism. Conversely, Illumina's experience shows that weaker-than-expected guidance can negatively affect stock prices, highlighting the importance of managing market expectations.
Takeaways from The Trade Desk and Sonos
The Trade Desk's experience suggests that even better-than-expected results may not always lead to positive stock movements, possibly due to other market factors. Sonos' strong results and raised guidance emphasize the potential benefits of outperforming expectations and providing optimistic future projections.
In conclusion, new businesses can learn valuable lessons from these companies' experiences, helping them navigate their own financial performance and market expectations.
Article First Published at: https://www.cnbc.com/2023/08/09/stocks-making-the-biggest-moves-after-hours-dis-wynn-app.html
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