Earnings

Lemonade stock declines following first public quarterly resultsLemonade Inc. shares declined in the extended session Tuesday as the mobile-based insurance company reported its first quarterly results a little over a month after its initial public offering. Lemonade shares declined 4.3% after hours, following a 6.9% drop in the regular session to close at $62.75. The company reported a second-quarter loss of $21 million, or $1.77 a share, compared with a loss of $23.1 million, or $2.09 a share, in the year-ago period. Revenue rose to $29.9 million from $13.8 million in the year-ago quarter. "At the start of the quarter we significantly slowed our marketing spend, suspended nonessential hiring, and offered to defer customers' payments," the company said in a statement. "Then, we braced for impact. We expected to see a spike in churn, a drop in demand, and a hit to our cash flow. None materialized." Lemonade expects revenue of $14 million to $15 million for the third quarter, and $86 million to $88 million for the year. Lemonade shares soared following the company's initial public offering in early July.

Dow, S&P 500 see 7-day winning streaks snap in late selloff, dragged down by tech shares Stocks weaken as Treasury yields riseStocks give up strong early gains to end lower Tuesday, dragged lower by a fall in tech stocks.

Tesla Is Splitting Its Stock. Here’s What That Means. Tesla bears will—very likely—finally see shares of the EV giant drop below $300. The problem is it will be the result of a five-for-one stock split. Stock splits aren’t supposed to matter fundamentally, but investors should be ready for more volatility in the aftermath of the move.

Kodak Reported a Loss but Here’s What Really Matters Eastman Kodak—the one time photography giant at the heart of one of the strangest stock stories of 2020—reported second quarter earnings Tuesday.

Kodak swings to Q2 loss, but shares surgeShares of Eastman Kodak Co. rose more than 10% in the extended session on Tuesday after the company reported a second-quarter loss of $5 million. That contrasted with a profit of $201 million in the year-ago period, but came as the company "continued to navigate the challenges posed by the pandemic during the second quarter," it said in a statement. Revenue fell to $213 million from $307 million a year ago. "Although the print industry slowdown impacted our performance, we continued to serve our customers and furthered our long history of innovation through the launch of six new print products," Executive Chairman Jim Continenza said in the statement. Kodak did not provide per-share figures and no analyst surveyed by FactSet had financial forecasts for the company's quarter. The company said it ended the period with a cash balance of $180 million, down from a March 31 cash balance of $209 million. Interest in Kodak shares has experienced a resurgence in recent days on news of a potential deal to give Kodak a $765 million loan to help pay for factory changes needed to make generic drugs in short supply in the U.S. Shares fell 54% so far this week, however, on news the deal may be off for the time being.

No Surprise, NIO Drops Even After Solid Earnings There are some positives for EV investors to take away from the report. Sales exceeded estimates by about 6%, and gross profit margins were better than guidance.

Nikola Sells 2,500 Garbage Trucks. That’s Traction. The market was hungry for a real customer and Nikola has one. Despite the stock giving back some of Monday’s gains, Wall Street seems impressed.

Red Robin shares drop 5% on plunge in sales, widening lossRed Robin Gourmet Burgers Inc. shares were down 5% in after-hours trading Tuesday after the restaurant chain fiscal second-quarter results that fell far short of Wall Street estimates. Red Robin executives blamed the shortfall on the closure of restaurants during the pandemic. Red Robin reported a net loss of $56.3 million, or $4.09 a share, versus net income of $981,000, or 8 cents a share, in the year-ago quarter. Revenue slumped 48% to $161.1 million from $308 million a year ago. Analysts surveyed by FactSet had expected a loss of $3.27 a share on revenue of $166.6 million. Red Robin shares are down 67% this year. The broader S&P 500 index has improved 3% in 2020.

Here’s what Trump’s payroll-tax deferral could mean for your paycheck The president’s executive order deferred, but didn’t forgive, an employee’s Social Security tax liabilitiesThe president’s executive order deferred, but didn’t forgive, an employee’s Social Security tax liabilities.

Zoom Video’s stock sinks below 50-day moving average after Salesforce unloads stake Video-conferencing company’s stock falls for 4th-straight day into correction territory, confirms bearish ‘double-top’ reversal patternShares of Zoom Video Communications Inc. sank for a fourth-straight day Tuesday, falling below some key chart levels in the process, after Salesforce.com Inc. disclosed that it recently sold off its entire stake in the video-conferencing company.

Why the S&P 500 is knocking on the door of its first record close in 6 monthsMillions of Americans are out of work due to the business closures resulting from the COVID-19 pandemic, but you wouldn't know that from the S&P 500.

Foot Locker got a Q2 boost from government stimulus but Q3 could be a different story, analysts say Foot Locker stock jumped more than 7% after the upbeat outlookFoot Locker gave a second-quarter update that includes a surprise profit, but analysts caution that the strong sales could soon come to an end.

Inovio shares tumble as analysts say COVID-19 vaccine update left more questions than answers Biotech’s loss widened and revenue fell short, while analysts are still keen for more data from Phase 1 vaccine trialInovio Pharmaceuticals Inc. shares tumbled 22% Tuesday, a day after the company reported a wider-than-expected second-quarter loss and offered a limited update on its COVID-19 vaccine candidate which is currently in clinical trials.

Cisco earnings to show how coronavirus is affecting small and large businesses differently About a third of Cisco sales comes from large companies, while about a third comes from smaller businesses — which third takes the bigger hit should be revealingCisco Systems Inc. is expected to benefit from large companies’ tech spending despite the COVID-19 pandemic, but the struggles of smaller businesses could take their toll.

New SoftBank Fund Buys Apple, Amazon Shares The Japanese holding company changed the way it reports financial results to acknowledge the obvious—SoftBank is an investment firm, not an operating company.

Fed slows corporate debt purchases to trickleThe Federal Reserve held $3.6 billion worth of corporate debt at the end of July, but its daily purchases are dwindling since the historic program kicked off in May, according to CreditSights.

Workhorse’s Earnings Spooked the Market. Here’s Why Analysts Are Still Positive. Stock in electric commercial van maker Workhorse traded down on earnings. That’s the wrong reaction, however, because earnings don’t matter.

HelloFresh is sizzling as demand for recipe box kits send shares soaring 150% this year The average U.S. family cooked at home four times a week before the pandemic. That has now risen to seven.Hello Fresh hiked its guidance for 2020 for the third time highlighting soaring demand for meal-kit makers amid the pandemic

Airline Stocks Are Soaring. Why One Analyst Sees More Gains Ahead. Citigroup’s Stephen Trent is particularly bullish on Spirit and Delta.

This stock-market indicator produced a ‘timely’ buy signal in March, and now its message is: SellTensions between the U.S. and China have stepped up a notch but U.S. stocks are also on the up at the start of the week.

World’s Largest Wind Turbine Maker Vestas Hits Record High as U.S. Demand Drives Sales Vestas Wind Systems’s stock hit record highs on Tuesday, as strong U.S. demand for wind turbines drove surging sales in the second quarter.

S&P 500 Is Trading Just Shy of an All-Time High At 121 days since its latest record, the benchmark index is on pace for the fastest recovery ever.

U.K. jobs picture looks bleak with 7.5 million furloughed or away from their jobThe U.K. jobs picture remains bleak, according to the latest data released on Tuesday, with a low unemployment rate masking a sharp drop in employment and a record fall in hours worked.

Nio's stock soars toward record territory after narrower-than-expected loss, upbeat deliveries outlookShares of Nio Inc. shot up 8.8% into record territory in premarket trading Tuesday, after the China-based electric car maker reported a second-quarter loss that was about half what was expected as revenue more than doubled, and provided an upbeat deliveries outlook for the current quarter. The net loss narrowed to RMB1.21 billion ($173.9 million), or RMB1.15 a share, from a loss of RMB3.31 billion, or RMB3.23, in the year-ago period. Excluding non-recurring items, the loss per share was RMB1.08, compared with the FactSet consensus for a per-share loss of RMB2.15. Gross margin swung to positive 9.7% from negative 24.1% a year ago. Total revenue rose 146.5% to RMB3.72 billion ($535.4 million), to beat the FactSet consensus of RMB3.51 billion. Deliveries reached a quarterly record of 10,331 vehicles, and the company expects a further increase to 11,000 to 11,500 vehicles in the third quarter. "Beyond the strong order growth, we are proud to reach a milestone quarter with respect to the key financial metrics of the company, highlighted with the historically high vehicle gross margin of 9.7%, lowest-ever operating losses and more importantly, a positive cash flow from operations for the first time in our history," said Founder and Chief Executive William Bin Li. The stock, which is on track to open above the July 10 record close of $14.98, has more than tripled (up 253.5%) year to date through Monday, while shares of U.S. rival Tesla Inc. have run up 239.1% and the S&P 500 has gained 4.0%.

Macerich' occupancies fell in Q2 due to pandemicMacerich Co. reported a second-quarter loss and said occupancies across its portfolio of malls fell as the company and its retail tenants grappled with the fallout from the Covid-19 pandemic. Macerich on Tuesday said the occupancy rate at its malls stood at 91.3% at the end of June, down from 94.1% at the end of the same month in 2019.

Small-Caps Play Catch-Up The Russell 2000 surged 6% last week. But that hardly made a dent in its year-to-date underperformance compared with bigger companies.

Lumentum's stock surges after adjusted profit and revenue beats, and upbeat earnings outlookShares of Lumentum Holdings Inc. charged up 5.0% in premarket trading Tuesday, after the optical networking and laser company reported fiscal fourth-quarter earnings that beat expectations and provided an upbeat first-quarter outlook. The net loss for the quarter to June 27 narrowed to $4.6 million, or 6 cents a share, from a loss of $25.8 million, or 34 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $1.18 from 91 cents, topping the FactSet consensus of 83 cents. Revenue fell 9.0% to $368.1 million, but beat the FactSet consensus of $349.7 million. Optical communications revenue declined 7.4% to $330.3 million but beat the FactSet consensus of $311.7 million, and lasers revenue dropped 20.9% to $37.8 million but was above the FactSet consensus of $35.3 million. For the first quarter, the company expects adjusted EPS of $1.40 to $1.55, compared with the FactSet consensus of $1.33, and revenue of $430 million to $455 million, surrounding expectations of $436 million. The stock has rallied 11.0% year to date through Monday, while the S&P 500 has gained 4.0%.

Stifel cuts COVID-19 vaccine developer Inovio's price target as earnings and call leave more questions than answersStifel analysts cut their stock price target for Inovio Pharmaceuticals Inc. to $16 from $24 on Tuesday, after the company posted a wider-than-expected second-quarter loss and revenue that fell short of estimates. Inovio is one of many companies working to develop a COVID-19 vaccine candidate. The numbers and the call "left us (again) with more questions than answers on numerous fronts," analysts led by Stephen Willey wrote in a note to clients. These include disclosure timelines for the trial of the company's COVID-19 vaccine candidate, INO-4800. The company said it expanded a 40-patient early-stage clinical trial by another 80 participants and that most patients were showing an immunological response to the vaccine, either by achieving binding antibodies, neutralizing antibodies or T cell responses. "Our hesitancy to attribute any INO-4800-related value in our model persists and our previously reduced discount rate (9%) reflected improved perception re: the likelihood of procuring third party funding," said the note. "We believe these lingering questions, coupled with an acceleration of the competitive development landscape (and difficult-to-beat immunogenicity hurdles), forces us to revisit that assumption (+250bps)." The company reported a second-quarter loss of $128.7 million, or 83 cents a share, compared with a loss of $29.4 million, or 30 cents a share, in the year-ago period. Revenue rose to about $267,000 from about $136,000 in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 17 cents a share on revenue of $2.6 million. Shares were down 8% in premarket trade Tuesday, but have gained 475% in the year to date, while the S&P 500 has gained 4%.

Royal Caribbean’s CEO Says Cruising Will Be Different After Covid-19. Here’s How. Royal, the second largest of the big three U.S. cruise operators, doesn’t plan to relaunch most of its cruises until Oct. 31.

Mall REIT Macerich beats loss expectations but misses on FFO and revenue, as 9 California malls were re-closedShares of Macerich Co. rose 1.8% in premarket trading Tuesday, after the real estate investment trust focused on shopping centers reported a narrower-than-expected net loss but second-quarter FFO and revenue that missed forecasts, as nine California malls were re-closed during the quarter as a result of a resurgence of COVID-19. The company swung to a net loss of $25.1 million,or 18 cents a share, from net income of $15.7 million, or 11 cents a share, in the year-ago period. The FactSet consensus was for a per-share loss of 27 cents. Funds from operations (FFO) fell to $60.5 million, or 39 cents a share, from $133.6 million, or 88 cents a share, missing the FactSet consensus of 49 cents. Revenue dropped 21.7% to $178.6 million, below the FactSet consensus of $185.6 million. The company said that while the majority of its properties are now open, two New York City malls remain closed since March, while nine indoor California malls, which had reopened in May and early June, were closed for a second time in July because of a statewide mandate. The stock has tumbled 69.4% year to date through Monday, while the SPDR Real Estate Select Sector ETF has slipped 5.8% and the S&P 500 has gained 4.0%.

Nothing Can Stop PayPal. How to Play It With Stock Options. PayPal, which enables people to transfer money via computers and smartphones, is proving to be one of the pandemic’s winners. Here’s a way to use options to buy the dip.

Canada Goose shares slide 7% premarket as company's loss widens and revenue slides during pandemicCanada Goose Holdings Inc. shares fell 7.3% in premarket trade Tuesday, after the company's loss widened and revenue fell sharply in its latest quarter. The company said it had a net loss of C$50.1 million ($37.7 million), or 46 cents a share, in the quarter to June 28, after a loss of $29.4 million, or 27 cents a share, in the year-earlier period. The company said it had adjusted loss of 35 cents a share, compared with a FactSet consensus for a loss of 42 cents a share. Revenue tumbled to C$26.1 million from C$71.1 million, compared with a C$20.5 million FactSet consensus. Direct-to-consumer sales fell to C$10.4 million from C$34.8 million, driven by temporary store closures and reduced store hours due to COVID-19. "New openings this year will be concentrated in Mainland China, where the recovery of traffic remains ahead of other markets," the company said in a statement. "With international tourism now heavily constrained, serving the world's largest luxury consumer base at home is increasingly crucial." The company is expecting a 'significant revenue decline' in its fiscal second quarter and is not providing guidance for the full year, given the uncertainty created by the pandemic. Shares have fallen 31.5% in the year to date, while the S&P 500 has gained 4%.

Casper Sleep's stock jumps after narrower-than-expected loss, revenue rises above forecastShares of Casper Sleep Inc. shot up 5.9% in premraket trading Tuesday, after the mattress seller reported a narrower-than-expected second-quarter loss, as store reopenings helped revenue rise more than forecast. The net loss narrowed to $24.2 million, or 61 cents a share, from $26.9 million, or $2.56 a share, in the year-ago period. The FactSet consensus for losses per share was 76 cents. Revenue rose 15.7% to $110.2 million, above the FactSet consensus of $104.8 million. Direct-to-consumer revenue grew 5% to $81.0 million while retail partnership revenue jumped 61.1% to $29.2 million. The company said after its North American stores were closed on March 17, as a result of the COVID-19 pandemic, its stores started reopening on May 14, with 57 of its 59 stores open with varying service levels as of June 30. The stock, which went public on Feb. 6, has rallied 21.3% over the past three months through Monday, while the S&P 500 has advanced 14.7%.

U.S. small business optimism falls in July: NFIBSmall-business owners confidence in the U.S. economy slipped in July as coronavirus cases continue to surge across the country, data from a survey compiled by the National Federation of Independent Business showed Tuesday.

Podcast: Nearing Record High Close, S&P 500 Up 50% From March Lows The S&P 500 could set a new record high any day now. Republic Services orders 2,500 Nikola trucks. And silver gains 64% year to date.

Vestas Wind Systems swings to lossVestas Wind Systems AS said Tuesday that it swung to a second-quarter net loss as earnings were weighed by provisions, but that the company has reintroduced full-year guidance as visibility improved. The Danish wind-turbine maker swung to a net loss attributable to shareholders of 7 million euros ($8.2 million), from a profit of EUR90 million a year earlier, missing an analyst's consensus of a EUR75 million profit according to a FactSet poll.

Vivendi teams up with activist investor to seek board seats at LagardereVivendi on Tuesday said it will team up with activist investor Amber Capital to get board representation on media conglomerate Lagardere.

SoftBank posts $11.8 billion profitTOKYO-- SoftBank Group Corp. returned to the black after big investment losses last fiscal year, reporting a Yen1.26 trillion ($11.8 billion) net profit in the April-June quarter. SoftBank lost $9 billion in the year ended in March--the worst results in the company's history--after its technology-focused $100 billion Vision Fund posted an investment loss of nearly $17 billion.

HelloFresh hikes guidance for third time this yearHelloFresh SE on Tuesday reported an increase in second-quarter earnings and raised its guidance for the year for the third time amid the coronavirus pandemic. The German meal-kit maker reported adjusted earnings before interest, tax, depreciation and amortization of 153.6 million euros ($180.3 million) for the quarter compared with EUR18.3 million the same period a year earlier.

Zalando profit more than doublesZalando SE said Tuesday that its net profit and revenue grew in the second quarter of 2020 as brand and retail partners increased their activities on its platform. The German Berlin-based online retailer said net profit for the quarter more than doubled to 122.6 million euros ($143.9 million) from EUR45.5 million the previous second quarter.