Earnings Movers| SHOP & SHAK + Nearly 20%; PARA, LYFT, PTON Plunged After Missed Estimates

$S&P 500(.SPX)$ closed down with the regional bank crisis and liquidity issue lingering on the broader market. Multiple companies released their earnings yesterday, with most of them falling, while $Shopify(SHOP)$ , $Shake Shack(SHAK)$ and $Coinbase Global, Inc.(COIN)$ surging.

1. $Shopify(SHOP)$ surged 23.84% with double beats and sale of logistics business

E-commerce firm Shopify early Thursday reported earnings and revenue for the March quarter that topped analyst estimates. SHOP stock rocketed 23.84% as the company also announced the sale of its delivery and logistics business to Flexport.

Adjusted EPS: one cent vs. -4 cents expected

Revenue: $1.5 bln vs. $1.435 bln expected

For the first quarter ended March 31, Canada-based Shopify said it earned one cent per share on an adjusted basis, down a penny from a year earlier. Also, revenue for Shopify stock rose 25% to $1.5 billion.

Analysts expected the Shopify earnings report to post a loss of 4 cents on revenue of $1.435 billion.

Meanwhile, the sales price of the Shopify-Flexport deal was not disclosed. Flexport will provide logistics services to Shopify. Shopify retains a minority stake in the logistics business.

2. $Paramount Global(PARA)$ -28.35% after it missed estimates and cut dividends

Paramount fell as more than 28% Thursday after it reported earnings and revenue that missed analyst estimates and cut its quarterly dividend.

The company cut its dividend to 5 cents per share from 24 cents a share to “further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability.”

It’s the first time since 2009 that Paramount reduced its dividend.

EPS: 9 cents vs. 17 cents expected

Revenue: $7.27 bln vs. $7.42 bln expected

3. $Shake Shack(SHAK)$ +16.57%: posting strong sales

Shake Shack was moving higher after the fast-casual burger slinger posted better-than-expected results in its first-quarter earnings report.

Shake Shack came out with a quarterly loss of $0.01 per share versus the Estimate of a loss of $0.09. Shake Shack posted revenues of $253.28 million for the quarter ended March 2023, surpassing the Estimate by 3.12%.

EPS: -$0.01 vs. -$0.09

Revenue: $253.28 mln, surpassing the Estimate by 3.12%.

This growth was driven by strong Shack sales. Despite the net loss, Shake Shack’s CEO, attributed the company’s strong performance to its ability to adapt to changing consumer behavior during the pandemic. Shake Shack’s digital sales also increased by 77% compared to Q1 2021

4. $Lyft, Inc.(LYFT)$ -17.03% on weak guidance while $Uber(UBER)$ +11.55% on the earnings date

Lyft dropped 17% after the ride-hailing company issued a weaker-than-expected forecast for the second quarter. Its EPS and revenue both beat the expectations.

EPS: 7 cents adjusted vs. - 6 cents expected

Revenue: $1 bln vs. $981 mln expected

Lyft said it expects second-quarter sales of approximately $1.0 billion to $1.02 billion, while analysts were projecting $1.08 billion, according to Refinitiv. Prior to the after-hours decline, Lyft shares had lost half their value in the past year.

Shares of $Uber(UBER)$ popped 11% after the company reported first-quarter results that beat analysts’ expectations for revenue.

EPS: -8 cent vs -9 cent expected

Revenue: $8.82 bln vs. $8.72 bln expected

In a prepared statement, CEO Dara Khosrowshahi said Uber is off to a “strong start” for the year

For the second quarter of 2023, Uber said it expects to report gross bookings between $33 billion to $34 billion, and an adjusted EBITDA of $800 million to $850 million.

5. $Peloton Interactive, Inc.(PTON)$ -13.48%: reported a wider-than-expected loss 

Peloton shares plummeted -13.48% after the company reported a wider-than-expected loss for the fiscal third quarter, forecast its first-ever decline in subscribers and acknowledged an uncertain economic backdrop.

EPS: -79 cents vs. -46 cents expected

Revenue: $749 mln vs. $708 mln expected

Peloton expects to end the fourth quarter with 3.08 million to 3.09 million subscribers. It marked the first time that the company has guided for a decline in subscribers.

In the shareholder letter, he said the quarter “will be among our most challenging from a growth perspective.”

6. $Coinbase Global, Inc.(COIN)$ +10.10%: beating estimates by EPS and Revenue

Coinbase rose 10.10% with a loss that was far lower than Wall Street expected.

Coinbase lost $-0.34 per share in GAAP earnings, whereas analyst consensus was calling for $-1.36 in the leadup to the first quarter results. Revenue of $772.5 million plunged 33% YoY but still beat the extremely dour Wall Street consensus by $119 million.

GAAP EPS: $-0.34 vs. $-1.36 expected

Revenue: $772.5 mln vs. 891.5 mln