3 Stocks to Watch on Thursday: Tesla Inc (TSLA), Square Inc (SQ) and Fitbit Inc (FIT)

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FIT - 3 Stocks to Watch on Thursday: Tesla Inc (TSLA), Square Inc (SQ) and Fitbit Inc (FIT)

The Dow Jones Industrial Average surpassed 22,000 on Wednesday thanks to a 0.2% uptick amid another mixed day for the major indices. While the S&P 500 Index gained 0.1%, the Nasdaq Composite lost a fraction of a percentage.

3 Stocks to Watch on Thursday: Tesla Inc (TSLA), Square Inc (SQ) and Fitbit Inc (FIT)Corporate earnings remain in the spotlight as we head into Thursday’s trading day. Several companies are on the move following their most recently reported results, including Fitbit Inc (NYSE:FIT), Square Inc (NYSE:SQ) and Tesla Inc (NASDAQ:TSLA).

Here’s what you should be on the watch for today:

Tesla Inc (TSLA)

TSLA stock is taking off this morning following a pleasantly surprising second-quarter report.

While the electric vehicle maker’s net loss widened from $293.2 million to $336.4 million, an adjusted loss of $1.33 per share was still far better than Wall Street expectations of $1.88 per share. The figure also was 17% less than last year’s non-GAAP loss.

Tesla’s revenues exploded by 79%, from $1.56 billion to $2.8 billion, which was higher than analysts’ estimates for $2.5 billion. Unsurprisingly, the bulk of the company’s revenue came from its automotive business, as this figure came to $2.3 billion, almost doubling the $1.2 billion raked in a year ago.

Automotive gross margin amounted to 25% on a non-GAAP basis, better than last year’s 23.6%.

Also putting a jolt into Tesla stock was the company’s announcement that it was taking more than 1,800 reservations for its mass-market Model 3 per day. Moreover, Tesla says non-GAAP gross margins on the Model 3 should turn positive by Q4.

Tesla also expects improved Model S and Model X deliveries in the second half of the year.

TSLA stock is surging 6% on the news, extending the company’s already 52% rally so far in 2017.

Fitbit Inc (FIT)

FIT shares are also enjoying a positive morning after it posted quarterly results last night.

The fitness tracker maker posted a loss of 8 cents per share, and while that’s far worse than the year-ago period’s 12-cent profit, it’s just less than half analysts’ projections of a 15-cent loss.

Fitbit revenues amounted to $353.3 million, which came in ahead of Wall Street’s expectations of $341.6 million, per Thomson Reuters. In the year-ago period, the company brought in $586.5 million, marking a year-over-year decline of 39.76%.

The company sold 3.4 million gadgets in Q2, which was slightly below estimates of 3.47 million.

Perhaps the most encouraging news from the report, however, was a status update on Fitbit’s long-awaited smartwatch. Fitbit has long been criticized for its lack of a true smartwatch, and has been dogged by reports of delays.

“Our smartwatch, which we believe will deliver the best health and fitness experience in the category, is on track for delivery ahead of the holiday season and will drive a strong second half of the year,” CEO James Park said in a statement.

FIT stock is up 3% this morning, cutting ever so slightly into 30% year-to-date declines.

Square Inc (SQ)

Hot-running Square has finally run into some resistance despite yet another solid quarterly performance.

The payment services provider reported a loss of $16 million, which was narrower than the year-ago period by 41%. Adjusted earnings of 4 cents per share were also narrower than the 5-cent loss Wall Street was expecting.

Meanwhile, revenues came in 26% higher year-over-year to $552 million, which topped analysts’ estimates of $536 million. That came on the back of a 32% YOY surge in gross payment volume to $16.4 billion, which also was better than the consensus view of $16.02 billion.

The company’s Square Capital lending program thrived over the quarter, growing by 68% year-over-year.

Square also updated its outlook for the full year. The company now expects adjusted earnings in a range of 21-23 cents per share, versus 16-20 cents previously, and that should come on the back of revenues ranging from $925 million-$935 million, up from $890 million-$910 million previously.

Still, SQ stock, which has nearly doubled year-to-date, is off about 1% this morning.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/3-stocks-to-watch-on-thursday-tesla-inc-tsla-square-inc-sq-and-fitbit-inc-fit/.

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