Tuesday Earnings Beats: Will Rocket Lab Present Another Gap-up Tonight?

The momentum in the market slowed down yesterday, but there are still some companies that delivered impressive earnings reports, achieving beat and rise. The market undoubtedly rewarded these companies. Let's take a look at the standout stocks this earnings season!

1. SpaceX competitor $Rocket Lab USA, Inc.(RKLB)$ skyrockets 28% after earnings beat accross the board

EPS: -$0.10, better than analysts' expectations of a $0.11 loss (beating by 9%).
Revenue: $105 million, surpassing the expected $102.3 million by about 2.6%. Revenue grew 55% year-over-year.
Q4 Forecast: Rocket Lab expects Q4 revenue to be between $125 million and $135 million, above FactSet's expectations of $121 million.
Market Outlook: Rocket Lab also projects that by 2030, satellite launch demand will exceed 10,000 units, with a market size estimated to reach approximately $10 billion. Its Electron rocket is expected to become the third most frequently launched rocket globally in 2024, behind only SpaceX and China.

$AST SpaceMobile, Inc.(ASTS)$ another satellite manufacturer and SpaceX partner, will report earnings late Thursday.

2. $Shopify(SHOP)$ soars 21% after EPS beats 30%

Earnings beat both top and bottom line expectations. While the company also gave an optimistic forecast for the holiday shopping season.

EPS: 35 cents, compared to the 27 cents per share expected, a 29.63% beat.
Revenue: $2.16 billion, compared to the expected $2.12 billion, a 1.89% beat.
Gross Merchandise Volume (GMV): GMV grew 24% year-over-year to $69.7 billion, exceeding analysts' expectations of $68.1 billion.
Q4 Outlook: Shopify expects revenue growth in the current quarter to be in the mid-to-high twenties percentage range, surpassing Wall Street’s expectations of 22.8%.

3. Mediterranean fast-casual restaurant $CAVA Group Inc.(CAVA)$ jumps 16% after earnings beat by 36%

EPS: 15 cents, beating analysts' expectations of 11 cents by 36%.
Revenue: $241.5 million, a 9% increase, surpassing the market expectation of $233.1 million, beating expectations by 3.6%.
Same-Store Sales: Same-store sales grew 18%, exceeding the expected 12% and accelerating from Q2’s 14.4%.
Traffic: Traffic grew 12.9%, up from 10% in the previous quarter.
Full-Year Outlook: Cava raised its full-year adjusted EBITDA forecast to $121 million-$126 million, up from the previous $109 million-$114 million, above analysts' consensus of $116.7 million.

4. Grab Jumps 11.64% after turning profitable and increasing guidance

Adjusted EBITDA: Grab reported adjusted EBITDA of $90 million for Q3, well above analysts' expectations of $66.2 million.
Net Profit: This marks Grab's second quarter of net profit, indicating a shift from previous losses to profitability.
2024 Guidance: Grab raised its full-year adjusted EBITDA forecast to $308-$313 million, higher than analysts' expectations.
Analysts at Maybank, DBS, and CGS-CIMB remain optimistic, with target prices raised to above $5 and “Buy” or “Outperform” ratings.

5. $Sea Ltd(SE)$ surges 10.46% with Shoppee on the way to profit

Sea jumped 10.46% after its Q2 2024 earnings report exceeded expectations across financial and operational metrics, particularly in e-commerce and financial services.

EPS: 24 cents per share, compared to analysts' expectations of 23 cents, beating expectations by 4.35%.
Revenue: $4.3 billion, a 31% year-over-year growth, surpassing the expected $4.1 billion by 4.88%.
Adjusted EBITDA: Adjusted EBITDA came in at $521.3 million, exceeding the expected $491 million.
Outlook: The company expects to achieve a stable profit level faster than anticipated, with a PE ratio forecasted to be below 30x by 2026.
Shopee E-commerce: E-commerce revenue from Shopee grew 41% to $3.4 billion. Shopee achieved positive adjusted EBITDA in both Asia and Brazil, indicating a key turning point towards profitability.
SeaMoney: SeaMoney saw rapid progress in its Buy Now, Pay Later (BNPL) business.

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Movers and Shakers: Who's Rising, Who's Diving?

During the busy earnings season, it's easy to be drawn to some big names. However, some lesser-known small companies can also become impossible to ignore during this period. Last week, there was ROOT, which surged 68% in a day, Reddit jumping 40%, and SMCI plummeting 40%. Which stocks with significant gains or drops have you noticed? Join the discussion!

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