Snap’s Revenue Visibility

Today is Friday, October 21, 2022.

New to this newsletter? Sign up here.

Snap’s Revenue Visibility

Shares of Snapchat parent Snap (NYSE: SNAP) plummeted 27.06% in after-hours trading on Thursday after the social media platform posted mixed financial earnings results.

Financials: Snap reported earnings of 8 cents per share and revenue of $1.13 billion; both were better than expected.

Hit and Miss: Daily active users grew 19%, which was better than expected, but average revenue per user was only $3.11, lower than the $3.49 per user during the same period last year.

Outlook: While revenue in the current quarter has already grown 9%, Snap said that “forwardlooking revenue visibility remains incredibly challenging” and the company will not offer formal financial guidance for the quarter. However, it expects revenue growth to decelerate in the quarter.

Buyback: Snap also announced a $500 million share repurchase program to help with the stock price.

Stock Price: Before today’s bad earnings, Snap’s stock was already down 76% for the year.

Final Thoughts: Snap’s rough earnings could be a harbinger for the rest of the online advertising space. These earnings sent Facebook parent company Meta Platforms (Nasdaq: META) down 4.01% and Pinterest (NYSE: PINS) down 7.10%.

Notables

Notable Earnings Today: American Express (NYSE: AXP), Verizon (NYSE: VZ), Schlumberger (NYSE: SLB), HCA (NYSE: HCA), Huntington Bancshares (Nasdaq: HBAN), Autoliv (NYSE: ALV), Euronet Worldwide (Nasdaq: EEFT), Regions Financial (NYSE: RF), Simply Good Foods (Nasdaq: SMPL), Central Pacific Financial (NYSE: CPF).

Notable IPOs Today: Beamr Imaging Ltd. (Nasdaq: BMR), Intensity Therapeutics, Inc. Common stock (Nasdaq: INTS), Alopexx, Inc. Common Stock (Nasdaq: ALPX).

Notable Equity Crowdfunding Campaigns Ending Today: Yukon Pizza (MainVest), Kartorium (Wefunder), Proof Bread (Mainvest).

Notable Economic Events Today: N/A.

CSX Survives Higher Labor Costs

Shares of CSX (Nasdaq: CSX) jumped 5.61% in after-hours trading on Thursday after the transportation and real estate company posted positive financial earnings.

Financials: CSX reported earnings of 52 cents per share and revenue of $3.9 billion; both were better than expected.

Costly: Expenses increased 25% in the quarter. There were additional labor expenses due to tentative union agreements, including $42 million to adjust for wages and other payments.

Stock Price: Shares of CSX are down 26% this year, including 7% in the last 30 days.

Final Thoughts: Despite declining rail traffic and higher costs, CSX pulled out a strong quarter.

Tenet Healthcare Faces Cyber, Covid Woes

Shares of Tenet Healthcare (NYSE: THC) dropped 16.79% in after-hours trading on Thursday after the healthcare company posted mixed financial earnings.

Financials: Tenet Healthcare reported earnings of $1.44 per share, which was better than expected. The revenue of $4.8 billion was in-line.

Challenges: The company blamed a recent cyber attack and “a very active COVID spike among” employees as factors that impacted the results.

Final Thoughts: Tenet Healthcare is down 32% in 2022. The company also announced a $1 billion share repurchase program to help with the stock price.

Trends to Watch

Steady: Bitcoin Flat as Volatility Hits 2-Year Low and Stocks Rise (CoinDesk)

Telecomm Surge: AT&T Earnings Top Views On Strong Wireless, Fiber Broadband Subscriber Growth (Investor’s Business Daily)

A Whirl of Trouble: Whirlpool 3Q Revenue Shrinks as Inflation Crimps Demand (MarketWatch)

Unbearable: How long will the bear market last? Signs to watch for a crypto market reversal (Cointelegraph)

Happy Holidays: Big bargains will dominate the holiday season, but shoppers may not be sold (CNBC)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Be social: Like our Facebook page and follow us on Twitter.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.