Coffee With Greta: Rebound Attempt
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DJIA Futures: +30 (+0.1%)
SPX Futures: +7 (+0.2%)
NASDAQ Futures: +24 (+0.2%)
Good morning friends!
Futures are up slightly as the market looks to rebound.
Let’s get right to it!
Rivian Tops Expectations, Hikes Production Guidance
Rivian (RIVN) shares are down 1.4% ahead of the open despite beating Q2 expectations and raising its full-year production target.
Here’s how the electric automaker’s results compared to analysts’ estimates:
- Loss per share: $1.08 vs $1.41 expected
- Revenue: $1.12 billion vs $1 billion expected
Rivian delivered 12,640 vehicles during the second quarter, up 59% from Q1.
The EV maker said it had $10.2 billion in cash on hand at the end of the quarter while capital expenditures decreased on a quarterly basis.
The company now expects to build about 52,000 vehicles this year, up from previous guidance for 50,000.
SMCI Drops On Weak Outlook
Super Micro Computer Inc (SMCI) shares are tumbling 14.8% in premarket trade after beating Q4 expectations but issuing weak guidance.
Here’s how the server company’s results compared to analysts’ estimates:
- Adjusted EPS: $3.51 vs $2.91 expected
- Revenue: $2.18 billion vs $1.98 billion expected
But SMCI expects a spending surge to support AI technology.
That contributed to the lower forecast.
The company expects Q1 adjusted EPS of $2.75 to $3.50 on revenue of $1.9 billion to $2.2 billion.
Analysts were estimating adjusted EPS of $3.21 on $2.2 billion in revenue.
Lyft Slips Despite Beat
Lyft (LYFT) shares are falling 6.1% ahead of the open despite beating Q2 expectations on the top and bottom line.
Here’s how the ride-hailing service’s results compared to analysts’ estimates:
- Adjusted EPS: $0.16 vs $0.01 loss expected
- Revenue: $1.021 billion vs $1.02 billion expected
Lyft forecast Q3 revenue between $1.13 billion and $1.15 billion vs $1.09 billion expected.
The company said, “We saw momentum across use cases, however commute and early-morning trips were standouts, growing by just over 20% year over year. And we had our highest volume of quarterly airport rides since 2019.”
Active-riders rose 8% to 21.5 million in the quarter but revenue per ride fell as the company cut prices to attract riders.
Roblox Losses Widen
Roblox (RBLX) shares are down 8.1% in premarket trade after reporting a larger Q2 loss than expected.
Here’s how the video game company’s results compared to analysts’ estimates:
- Loss per share: $0.46 vs $0.45 expected
- Bookings: $781 million vs $785 million expected
Bookings were up 22% year over year.
Roblox reported 65.5 million average daily active users during the quarter, up 25% from a year ago.
Those users spent more than 14 billion hours engaged in Roblox, up 24%.
Roblox said it expects to continue to report losses for the “foreseeable future.”
Mortgage Demand Drops
Mortgage demand dropped again last week as rates surged.
The Mortgage Bankers Association reported total application volume dropped 3.1% weekly.
Purchase applications fell 3% weekly and 27% year over year while refinance applications fell 4% weekly and 37% annually.
The average 30-year fixed contract rate jumped to 7.09% from 6.93%.
The FHA rate hit 7.02%, the highest since 2002.
The higher rates came as Treasury yields rose last week, mortgage rates follow the 10-year yield.