Some Earnings Worth $HEARing

While everyone is focused on the “bigger-picture” risks in the market, there are still plenty of companies reporting earnings. 📝

Let’s recap some of today’s biggest movers (besides Gitlab). 👇

Digital media company Buzzfeed reported weaker-than-expected results and guidance. Its fourth-quarter revenue was down 8% YoY to $134.6 million, driven by a 27% decline in advertising revenue. Its adjusted net loss of $106.2 million included a $102.3 million non-cash goodwill impairment charge, but adjusted EBITDA was still cut in half YoY. Time spent by users also fell 27% YoY to 135 million hours. 🔻

Even accounting for today’s challenging digital media environment, executives’ forecasts surprised investors. They expect first-quarter 2023 revenue of $61 to $67 million, representing a 30% YoY and 50% QoQ decline. Lastly, the company noted it had the majority of its cash at Silicon Valley Bank but assured investors it’s accessing the funds and does not anticipate any operational disruptions. $BZFD shares fell 13% on the news. 😮

Gaming headset maker Turtle Beach also missed Wall Street estimates for its fourth-quarter earnings. It reported an adjusted loss per share of $0.10, while analysts expected $0.20 in earnings. Revenues of $100.9 million were also shy of the $110.8 million expected. The company pulled forward much of its growth during the pandemic and is now dealing with a significant slowdown. The more challenging macro environment and change in consumer spending habits will remain key headwinds for the company. $HEAR shares fell 13% after hours. 🎧

Small-cap AI and machine learning company BigBear.ai Holdings reported weaker-than-expected results. Its loss per share of $0.23 missed the consensus estimate by $0.08, though revenues of $40.4 million topped the $39.96 million expected. Its guidance was also soft, with Q1 2023 revenue of $155 to $170 million, well below the $173.03 consensus view. $BBAI shares were down about 10% after hours. 🤖

United Airlines doesn’t report for another month but issued a first-quarter profit warning. It now expects an adjusted loss of $0.60 to $1.00, with prior guidance of $0.50 to $1.00 in earnings per share. The consensus estimate was $0.65 per share in earnings. Executives also trimmed their unit revenue growth estimate from 25% to 22%-23%. $UAL shares are down about 7% after hours, adding to their 4% regular-session decline. 🛬

Meanwhile, ZIM Integrated Shipping Services delivered some positive results for investors today. The company’s fourth-quarter sales of $2.19 billion fell 37% YoY but beat the consensus estimate of $2.11 billion. Its $3.44 earnings per share also topped the $3.05 expected. A significant drop in freight rates drove the revenue decline, as carried volume of 823 thousand TEUs fell just 4% YoY. Executives expect adjusted EBITDA of $1.8 to $2.2 billion and adjusted EBIT of $100 to $500 million in 2023. The company also declared a cash dividend of $6.40 per share. $ZIM shares were up over 15% initially but closed +6.59%. 🚢

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Tech Earnings: Let’s Jump Right Intuit

Global financial technology platform Intuit kicked off tech earnings after the bell. 🔔

The company, which owns TurboTax, Credit Karma, Quickbooks, and Mailchimp, missed revenue but beat earnings expectations. Adjusted earnings per share of $8.92 on revenues of $6.02 billion were mixed versus the $8.48 and $6.09 billion consensus views.

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Monday.com’s Magical Monday

Mondays can be a downer, especially if you’ve been a software stock investor over the last two years. However, today was a bit better after Monday.com reported better-than-expected first-quarter results. 👍

The cloud-based work management tool competes with Asana, Smartsheet, Atlassian, Adobe, and Microsoft. Unfortunately, like its peers, it fell drastically from its late 2021/early 2022 highs, dropping nearly 85% at its November 2022 low. 😶‍🌫️

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A Trip Down Mall-mory Lane

Several retailers reported today, many of which have a significant mall presence. Let’s see how they fared and what they said about the U.S. consumer. 🏬

First up is Kohl’s, which reported an unexpected first-quarter profit. Profitability improved as freight costs declined, and the company became more pointed with its promotional activity after getting inventory levels back under control. That led to adjusted earnings per share of $0.13, beating the $0.42 loss expected. Revenue of $3.36 billion and comparable-store sales declines of 4.3% were essentially in line with expectations.

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Investors Sell As They Sea Ltd. Upside

Singapore-based e-commerce and digital entertainment company Sea Ltd. reported weak results today, sending shares tumbling. 📉

The company’s adjusted earnings per share of $0.15 on revenues of $3.04 billion missed the $0.40 and $3.07 billion analysts expected.

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