Last week was another busy earnings week for Wall Street, with many well-known companies releasing their most-recent results! In today’s Market360, let’s review some of the highlights.
Moderna (NASDAQ:MRNA) released its second-quarter earnings on Thursday. Earnings of $6.46 per share beat analysts’ expectations of $5.86. Revenue of $4.35 billion topped analysts’ estimates for $4.23 billion. So, Moderna posted a 10.3% earnings surprise and a 2.9% revenue surprise.
The biotech company also reported that its Covid vaccine booster shot is effective at preventing and protecting against the Delta variant.
Uber Technologies, Inc. (UBER)
Shares of Uber Technologies, Inc. (NYSE:UBER) were up slightly this week after the company released earnings and sales results for the latest quarter on Wednesday. Company management noted that monthly active drivers and couriers were up nearly 420,000 from February to July.
For its second quarter, UBER achieved revenue of $3.93 billion. That translated to 75.3% year-over-year revenue growth. Third-quarter earnings per share climbed 48% year-over-year to-$0.17, up from an earnings loss of $0.65 per share in the second quarter of 2020.
The consensus estimate called for an earnings loss of $0.32 per share on $3.76 billion in sales, so UBER posted a 47.4% earnings surprise and a 4.4% revenue surprise.
Lyft Inc. (LYFT)
On Tuesday afternoon, Lyft, Inc. (NASDAQ:LYFT) announced second-quarter earnings and sales results.
Company management reported its first quarterly adjusted EBITDA profit, posting $23.8 million. This is a quarter earlier than the company targeted.
For the second quarter, Lyft achieved revenue of $765 million, up 125.4% year-over-year, and a per share loss of $0.05. That compared to revenue of $339.4 million and an $0.86 per share loss in the second quarter of 2020.
The consensus estimate called for an earnings loss of $0.25 per share and revenue of $700.5 million, so Lyft posted an 80.2% earnings surprise and a 9.2% revenue surprise. However, the stock slipped 5% this week.
Etsy, Inc. (ETSY)
Shares of Etsy, Inc. (NASDAQ:ETSY) dropped about 3% following the company’s earnings announcement on Wednesday. The online marketplace reported that quarterly revenue increased 23.4% year-over-year to $528.9 million, which barely topped forecasts for $525.7 million. Etsy also reported earnings of $0.87 per share, beating estimates of $0.74. So, ETSY posted a 0.6% revenue surprise and a 17.1% earnings surprise.
The company posted $3 billion in consolidated gross merchandise sales, which was in line with management’s guidance between $2.8 billion and $3.1 billion. Active sellers increased by 67% and active buyers increased by 50.1% during the second quarter.
Despite the company’s slight earnings beat, the stock plunged 14% on Thursday but then regained some of those losses later in the day. The reality is Wall Street was not happy about the minor earnings and sales beat and lower-than-expected user growth.
Find Better Growth Elsewhere
The reality is the majority of these earnings reports weren’t much to write home about. While Moderna posted strong results, Etsy barely topped revenue estimates and Uber and Lyft failed to turn a profit. So, it’s no surprise that, with the exception of Moderna, the stocks didn’t move significantly higher on their results.
I am pleased to say that the opposite is true for my Growth Investor stocks. So far, my Growth Investor stocks have rose to the occasion, achieving better-than-expected earnings for the most-recent quarter. We had 21 Growth Investor Buy List companies release results from the most-recent quarter this week, and 17 beat analysts’ expectations. In fact, our average earnings surprise was a stunning 30%.
And for the second-quarter earnings season as a whole, we’ve had 52 Growth Investor Buy List companies announce results, with 43 topping earnings forecasts and only six missing forecasts. Our average earnings surprise is an impressive 26%. The S&P 500, on the other hand, has posted an average 17.2% earnings surprise.
Needless to say, I’m proud of how my Growth Investor stocks have performed so far this earnings announcement season. And while earnings season will begin to wind down in the next few weeks, I expect investors to continue flocking to my fundamentally superior stocks and drive them even higher.
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The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
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