Before the bell, take a look at the businesses that are in the news.
WeWork: After the Wall Street Journal reported that the firm that provides shared workspaces intends to file for Chapter 11 bankruptcy protection as soon as next week, shares of the shared workspace provider fell 35.5%.
Estee Lauder—The maker of cosmetics saw a more than 14% decline in stock price following the release of its earnings guidance for the current quarter and the entire fiscal year, which was far below analyst projections. When FactSet polled analysts predicted a 2.2% gain in revenue, Estee Lauder predicted a decline in revenue growth of between 9% and 11% for the upcoming quarter.
ZoomInfo Technologies: After the company’s third-quarter earnings were disclosed on Monday, Goldman Sachs downgraded the company to neutral from buy, causing a 2.4% decline in shares of the sales and marketing technology platform. ZoomInfo provided soft forecast for current quarter earnings and operating income, but it topped FactSet’s polled analysts’ predictions for sales and earnings.
Humana: After reducing its full-year guidance for non-adjusted earnings per share, Humana’s shares slumped 2.8%. Humana merely reiterated full-year forecast for adjusted earnings per share despite the third-quarter beat, as reported by StreetAccount. The company’s third-quarter adjusted earnings per share of $7.78 exceeded the Wall Street consensus estimate of $7.16.
CVS – Despite posting a beat in third-quarter earnings and revenue, the owner of Aetna insurance and pharmacy chain saw a 1.5% decline in share price. However, medical benefit expenses came in at 85.7% of premiums, 1% over budget, with CVS blaming increased outpatient care and Medicare Advantage usage for the increase.
Pathfair — The online furniture store experienced a 12% decline when its revenue for the third quarter fell short of analyst estimates. The consensus figures from LSEG show that Wayfair’s revenue was $2.94 billion, which was less than the $2.98 billion forecast. The adjusted loss per share was 13 cents, which was less than the 48 cents projected loss.
Match Group: Due to lower-than-expected sales forecast for the fourth quarter, the owner of dating services saw an 8.3% decrease in revenue. LSEG, previously Refinitiv, reported that match projected revenue of $855 million to $865 million, compared with analysts’ expectations of $895 million.
Innovative Micro Devices — The chip manufacturer saw a more than 1% decline after releasing fourth-quarter revenue projections that was lower than anticipated. For its data centre GPU division, it did, however, provide optimistic 2024 guidance.
General Motors, Ford — The automakers saw increases of over 1% apiece following Barclays’ upgrade of each to overweight from equal weight, noting attractive prices following the stock falls in October. “We think the various business challenges have caused ‘peak pain,’ resulting in trade multiples at all-time lows,” stated Barclays.
Paycom Applications — When the company’s third-quarter revenue fell short of expectations, shares saw a fall of more than 36%. According to FactSet, Paycom reported sales of $406.3 million for the period, compared to analysts’ estimates of $411.2 million. In the meantime, Paycom’s earnings per share above analysts’ expectations, reporting $1.77, excluding adjustments, compared to their $1.61 estimate.
Source (CNBC)
