Monday was a strong day for the U.S. stock market, led by a 0.5% advance by the tech sector. The S&P 500 Index finished 0.2% higher, the Dow Jones Industrial Average gained 0.1% and the Nasdaq Composite surged 0.5%.
The earnings schedule is back in full gear yet again, with Tuesday’s movers largely dominated by corporate results. Today, the spotlight falls on Wayfair Inc (NYSE:W), Michael Kors Holdings Ltd (NYSE:KORS) and Avis Budget Group Inc. (NASDAQ:CAR).
Here’s what investors need to know this morning:
Wayfair Inc (W)
W stock rocketed to still new all-time highs in Tuesday morning trade following the company’s Street-beating second-quarter earnings report, but suddenly turned tail at the open.
The online home decor company reported a $38.9 million loss (45 cents per share), down more than 19% year-over-year. The company’s adjusted loss of 26 cents per share came out far better than the 46-cent in red ink Wall Street was expecting.
That news was more than enough to cover up a revenue miss of about $30 million, though the top line of $1.12 billion still was 42% better than the year-ago period.
Other highlights from the quarter included a 43.1% jump in active users to 9.5 million, orders per customer of 1.74 that were up from 1.7 a year ago, and average order value of $258, topping the consensus expectation by $14. Also, total mobile Direct Retail orders as a percentage jumped to 44.1% from 38.4% in the year-ago quarter.
W stock was up by more than 5% Tuesday morning before reversing at the opening bell. That takes Wayfair off its all-time highs and cuts into what was a roughly 130% year-to-date run.
Michael Kors Holdings Ltd (KORS)
KORS stock holders are breathing a sigh of relief thanks to a double-digit spike following the company’s fiscal first-quarter earnings report.
Michael Kors’ revenues fell 3.6% on the quarter to $952.4 million, though it came in well ahead of consensus estimates for $919 million. Net income also dropped roughly 15% to $125.5 million (80 cents per share), but on an adjusted basis, profits of 90 cents clobbered expectations for just 62 cents.
While the company saw declines in its Americas and European businesses, Asian revenues spiked by just more than 60%.
Fiscal Q2 guidance also was robust, with the company expecting Q2 revenues in a range of $1.04 billion-$1.06 billion filtering down to earnings of 80-84 cents. Both metrics are higher than the pros’ estimates of $1.01 billion in sales and 78 cents in profits. Same-store sales guidance for a mid-single-digit decline was on par with the Street.
KORS shares are jumping by about 13% this morning, cutting deeply into a the stock’s year-to-date deficit and putting it within a couple percent of breakeven for 2017.
Avis Budget Group Inc. (CAR)
Lastly, CAR shares were getting crushed after Avis reported a disappointing second quarter.
The car rental company earned 4 cents per share in its second quarter — a massive 89.5% plunge from the 38 cents per share it earned a year ago. Adjusted earnings were better at 30 cents per share, but that figure was less than half the 63 cents it earned in the year-ago quarter, and well short of Wall Street expectations for 52 cents.
Avis’ revenues also underwhelmed. The company recorded a top line of $2.2 billion, $100 million short of analysts’ consensus mark, and flat year-over-year.
Avis’ outlook was mixed. The company’s top-line projection for full-year revenues of $8.8 billion and $9 billion beat the Street, with the midpoint coming in higher than analyst expectations for $8.8 billion. However, the midpoint of Avis’ projected earnings range of $2.40-$2.85 per share came in lower than analysts’ estimates of $2.78.
CAR stock is off by about 9% in Tuesday’s premarket trade. If that holds in regular trading, that would roughly double the company’s year-to-date loss.
