Earnings

November 27, 2023

Bulls Scaling Back In Zscaler

Cybersecurity software stock Zscaler is falling despite its first-quarter results and full-year guidance beating expectations. 🤔

The company’s adjusted earnings per share of $0.67 topped the expected $0.49. Revenues of $496.7 million and billings of $456.6 million also beat the $473 million and $441 million anticipated. 

However, the stock may be having trouble because CEO Jay Chaudhry said, “We are scaling our go-to-market and R&D organizations, strengthening our foundation for the long-term growth of our business.” While investing in these areas is a positive long-term, it does imply higher costs and potentially thinner margins in the near term. 🔻

Additionally, its full-year forecast of $2.52-$2.56 billion in billings stayed the same despite raising revenue and earnings guidance. Those two factors gave investors pause, especially since $ZS shares were already up nearly 75% YTD heading into this report.

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Target Hits Its Mark With Membership Push

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Nvidia Delivers Bears Another Blow

With it being Nvidia day and all, let’s recap the semiconductor giant’s earnings and reaction. 👇

Before the print, we noted that Nvidia had only seen a downside surprise in earnings vs. expectations three times in the last ten years. However, with analyst estimates high and bullish sentiment roaring into the print, bears thought the contrarian view might have paid off.

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Walmart Bets Big On Advertising

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Earnings

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The Internet Of Things Grows Wings

While sentiment surges around crypto and artificial intelligence, it’s no surprise to see that hype around the “Internet of Things” company Samsara is also popping off. 🤩

The stock jumped to fresh all-time highs in the after-hours session following better-than-expected results. Its fourth-quarter revenues of $276.3 million topped estimates of $258.3 million, with its adjusted loss also narrower than anticipated. 💪

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Earnings

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Semis Continue To Tower Over Market

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First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. 🔺

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Earnings

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BJ’s Beats Costco For The Day

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BJ’s Wholesale Club revenues grew 8.70% YoY to $5.357 billion, with adjusted earnings of $1.11 per share. While earnings topped expectations, revenue was slightly below, with executives citing an uncertain macroeconomic environment as the primary driver.

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Earnings

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After the bell, ridesharing company Lyft reported fourth-quarter results that were good, not great. But the stock immediately shot up and notched as high as a 60% gain before anyone realized what happened. Did the company just invent a cure for rare diseases? Are they pivoting to crypto or semiconductors? What was the cause of this?

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