Coffee With Greta: Election Question Weighs on Stocks
DJIA Futures: -124 (-0.4%)
SPX Futures: -13 (-0.3%)
NASDAQ Futures: -46 (-0.4%)
Good morning friends!
Futures are falling as it remains unclear which party will control Congress after Tuesday’s midterm elections.
Let’s get right to it!
Disney Slumps On Profit Miss
Walt Disney (DIS) shares are dropping 8.1% ahead of the open after missing fiscal Q4 profit expectations.
Here’s how the company’s results compared to analysts’ estimates:
- Adjusted EPS: $0.30 vs $0.55 expected
- Revenue: $20.15 billion vs $21.24 billion expected
The company saw revenue growth of 22% in fiscal 2022 and forecast growth of less than 10% in fiscal 2023.
Revenue in Disney’s key media and entertainment division fell 3% year over year to $12.7 billion in fiscal Q4, missing expectations for $13.9 billion.
Its streaming platform Disney+ grew more than expected, adding 12.1 million subscribers during the quarter.
That put total subscribers at 164.2 million vs 160.45 million expected.
But Disney warned that growth is expected to slow in fiscal Q1.
Disney reported record revenue of $7.4 billion in its parks, experiences, and products segment.
That was up 34% year over year but shy of analysts’ expectations for $7.5 billion.
AMC Losses Widen
AMC Entertainment (AMC) shares are falling 3.7% in premarket trade after reporting losses in Q3.
Here’s how the theater chain’s results compared to analysts’ expectations:
- Adjusted loss per share: $0.20 vs $0.23 expected
- Revenue: $968.4 million vs $961 million
Although those results were better than expected, it was the 12th consecutive quarterly loss for the company.
AMC reported an adjusted EBITDA loss of $12.9 million vs $5.4 million a year ago.
CEO Adam Aron said, “Our third-quarter results were impacted by a particularly soft industry-wide box office in the latter two-thirds of the 2022 third quarter.”
The losses come as AMC’s spending on food and beverages jumped 30% compared to Q3 2019.
Roblox Sinks On Big Q3 Loss
Roblox (RBLX) shares are tumbling 15.5% ahead of the open after reporting a wider Q3 loss than analysts anticipated.
Here’s how the company’s results compared to analysts’ expectations:
- Loss per share: $0.50 vs $0.35 expected
- Revenue/Bookings: $702 million vs $686 million expected
Bookings were up 10% year over year with average daily active users rising 24% to 58.8 million.
But average bookings per daily active user fell 11% to $11.94.
Lucid Reservations Drop
Lucid Group (LCID) shares are falling 7.8% in premarket trade after missing Q3 expectations.
Here’s how the electric automaker’s results compared to analysts’ estimates:
- Loss per share: $0.40 vs $0.31 expected
- Revenue: $195.5 million vs $209 million expected
Revenue was down from $232 million in Q3 2021.
Lucid said it has more than 34,000 reservations for its Lucid Air EV, down from the 37,000 it reported after Q2.
The company said it is on track to meet its 2022 production target of 6,000 to 7,000 vehicles.
Lucid also announced it will open reservations for its second vehicle, an SUV, in early 2023.
Meta Announces Mass Layoffs
Meta Platforms (META) shares are up 4.5% after the company announced mass layoffs this morning.
In a letter to employees, CEO Mark Zuckerberg said, “I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go.”
Zuckerberg also said Meta is cutting discretionary spending and extending its hiring freeze through Q1 2023.
He said the recruiting department will see the largest impact from those moves.
Key Earnings After The Close
Here are the companies scheduled to report Q3 earnings after the close today:
- Rivian (RIVN)
- Unity Software (U)