Thursday was something of a hangover for U.S. equities, though defensive utilities had a good day, rebounding 0.7%. Still, the Dow Jones Industrial Average lost 0.5%, the S&P 500 gave back 0.6% and the Nasdaq Composite dropped 0.7%.
Today looks to be a flat day overall, but Nutanix Inc (NASDAQ:NTNX) and American Outdoor Brands Corp (NASDAQ:AOBC) are moving sharply on earnings, while Snap Inc. (NYSE:SNAP) is starting up its first full day of regular ol’ mundane trading following Thursday’s introduction to the public markets.
Here’s what they day brought:
Snap Inc. (SNAP)
Snapchat parent Snap Inc had a day to remember yesterday.
SNAP stock charged ahead by 44% in the image-sharing app’s first day on the public markets. That put shares at $24.48 each after the company priced its IPO at $17 per share. And Friday looks like a follow-through day of buying, based on early trading.
Snap has come a long way since being an app that two friends formed in a dorm room in Stanford University, as many people in the industry considered it a novelty with a popularity that would soon wear off. But the company has grown into a social media account that many use as their primary form of communication.
The company has expanded wildly, with employee headcount spiking from 600 to 1,859 last year alone.
There are a couple of danger signs. For instance, the float of 200 million shares is pretty low, and 50 million of that will be locked up for a year. Also, SNAP stock doesn’t include voting rights, which could dampen interest long-term, especially in institutional investors.
Still, the enthusiasm hasn’t yet worn off. SNAP stock is opening Friday’s trade up 7%.
Nutanix Inc (NTNX)
Nutanix’s Friday isn’t so cheery, with NTNX shares off big after a disappointing fiscal third-quarter outlook.
The cloud computing services provider reported a loss of $93.2 million, or 66 cents per share, for its fiscal Q2. When adjusted for stock-based compensation, the loss of 28 cents did beat expectations for a 35-cent deficit. Revenues also came in ahead of analyst estimates, with $182.2 million beating the top-line mark of $178.4 million.
However, the Q3 outlook was worrisome. Projected revenues came in a range of $180 million to $190 million, trickling down to an adjusted loss of 45 cents to 48 cents. Wall Street is looking for a 35-cent loss on $188.5 million on the top line.
Nutanix is citing increased components costs for the sluggishness in its results.
NTNX stock is giving back 20% in Friday’s trade.
American Outdoor Brands Corp (AOBC)
American Outdoor Brands, formerly Smith & Wesson, was off soundly Friday thanks to weak fiscal Q3 sales on receding gun demand.
Adjusted earnings of 66 cents per share came in above expectations for 55 cents, but revenues of $233.5 million were shy of estimates for $235.8 million. That said, the top line was better by 11% year-over-year.
CEO James Debney said that “consumer firearm purchasing began to cool” during the end of the quarter, and admitted that a decline in background checks, while expected, likely had an impact. FBI National Instant Criminal Background Check System (NICS) checks were off 10% during AOBC’s fiscal quarter, including 24% year-over-year in January, and 17% in December.
Slower handgun checks were particularly problematic for AOBC, which was more than 6% lower in Friday’s early trade.