Coffee With Greta: Election Day
DJIA Futures: +107 (+0.3%)
SPX Futures: +14 (+0.4%)
NASDAQ Futures: +75 (+0.7%)
Good morning friends!
Futures are rising as the market gears up for today’s midterm election results and traders digest the latest batch of Q3 earnings.
Let’s get right to it!
Kohl’s CEO to Step Down
Kohl’s (KSS) shares are up 7.6% in premarket trade after announcing its CEO will step down.
Michelle Gass will leave the company on December 2 to pursue a new opportunity.
Levi Strauss (LEVI) separately announced she will serve as president of that company.
Kohl’s director Tom Kingsbury will serve as interim CEO.
The company has been under pressure from activist investors to remove Gass after terminating takeover talks over the summer.
Lyft Sinks On Slowing Growth
Lyft (LYFT) shares are plunging 17.8% ahead of the open despite beating Q3 expectations as the report showed growth is slowing.
Here’s how the ride share company’s results compared to analysts’ expectations:
- Adjusted EPS: $0.10 vs $0.07 expected
- Revenue: $1.054 billion vs $1.056 billion expected
- Adjusted EBITDA: $66 million vs $62 million expected
Lyft had 20.3 million active riders in the quarter, up 2% from Q2 and 7% year over year.
That missed analysts’ expectations for 21.3 million.
Revenue per active ride rose to a record $51.88, up 14% annually and 4% quarterly.
Lyft forecast Q4 revenue between $1.145 billion and $1.165 billion with adjusted EBITDA between $80 million and $100 million.
Analysts were estimating revenue of $1.159 billion and adjusted EBITDA of $85 million.
TripAdvisor Plummets After Earnings Miss
TripAdvisor (TRIP) shares are plummeting 22.4% in premarket trade after missing Q3 expectations.
Here’s how the company’s results compared to analysts’ estimates:
- Adjusted EPS: $0.28 vs $0.39 expected
- Revenue: $459 million vs $444.3 million
TripAdvisor said foreign currency fluctuations impacted revenue by $34 million in Q3.
Despite the miss, in its letter to shareholders the company said, “Our results reflect a sustained demand for travel and dining, and another quarter of steady progress to full recovery.”
Take-Two Interactive Tanks After Cutting Outlook
Take-Two Interactive (TTWO) shares are plunging 17.3% ahead of the open after cutting its full-year outlook.
Here's how the video game company’s fiscal Q2 results compared to analysts’ expectations:
- GAAP net loss: $1.54 per share
- Net bookings: $1.5 billion, in line with expectations
Bookings were up 53% year over year but Take-Two cut its forecast for full-year bookings.
The company now expects fiscal 2023 net bookings to be between $5.4 billion and $5.5 billion.
That’s down from $5.8 billion to $5.9 billion previously.
Lordstown Rallies On New Foxconn Investment
Lordstown Motors (RIDE) shares are rallying 17.3% in premarket trade after announcing a new investment from Taiwanese contract manufacturer Foxconn.
The electric truck maker said it still plans to deliver the first models of its Endurance pickup truck before year-end.
The company said Foxconn will invest an additional $170 million in Lordstown over three phases.
The first $52.7 million is due later this month.
Following that investment, Foxconn will own about 18% of Lordstown and be the company’s largest shareholder.
Foxconn bought Lordstown’s Ohio factory for $230 million in May, where the company is building its Endurance pickup.
Lordstown said it will use part of that investment from Foxconn to develop a new vehicle.
The company said it is actively seeking an automaker partner to help it scale up production of the Endurance.
Lordstown now expects to build only 30 of the trucks by year-end, down from its previous target for 50.
Key Earnings After The Close
Here are the companies scheduled to report Q3 earnings after the close today:
- Walt Disney (DIS)
- AMC Entertainment (AMC)
- Lucid Group (LCID)
- Lordstown Motors (RIDE)