Four major companies have reported their earnings for the fourth quarter of 2022, and their stocks have been moving in after-hours trading. Here is a brief summary of each company’s report:
Nvidia (NVDA) – The chipmaker reported sales of $6.05 billion for the quarter, beating Wall Street’s estimate of $6.01 billion. Adjusted earnings per share were 88 cents, above the expected 81 cents. Nvidia’s revenue guidance of $6.5 billion, plus or minus 2%, also exceeded expectations. The company has been rising in stock value since the beginning of 2023, with a 41% increase, due to the overall rise in semiconductor stocks and the increased interest in artificial intelligence (AI). Nvidia has recently announced that it will offer AI as a cloud service, which is seen as a positive move by Wall Street.
Bumble (BMBL) – The dating-app company reported fourth-quarter revenue of $241.6 million, a 16% year-over-year growth that exceeded Wall Street’s estimate of $235.8 million. Bumble’s total paying users grew 15% year over year to 3.4 million, versus Wall Street’s expected 3 million. However, the company reported an adjusted loss per share of 85 cents, which was wider than the expected 3-cent loss per share. Bumble’s stock reaction was muted in after-hours trading, in contrast to the previous quarter when its shares fell due to product launch delays and a slowdown in subscriptions caused by inflation.
Etsy (ETSY) – The online marketplace reported a record fourth-quarter revenue of $807.2 million, surpassing Wall Street’s estimate of $753.7 million. Earnings per share were 77 cents, just below the consensus estimate of 78 cents. Etsy’s CFO Rachel Glaser said the company has sustained profitable growth and strong free cash flow, despite concerns raised by a short-seller report from Citron about the company’s operations and claims of counterfeit goods on the platform. Wall Street remains bullish on the stock, with 16 Buy ratings, 11 Holds, and 1 Sell.
Lucid (LCID) – The luxury electric vehicle (EV) maker reported fourth-quarter revenue of $257.7 million, missing Wall Street’s estimate of $314.9 million. Lucid produced 3,493 vehicles and delivered 1,932 cars in the quarter, below expectations, due to supply constraints. The company’s production announcement for this year has disappointed Wall Street, with senior analyst Jaime Perez of RF Lafferty expressing concerns about the low number of vehicles projected to be produced between 10,000 and 14,000. Lucid’s stock has been volatile this year due to a high level of short interest and speculation of a buyout that caused a spike in stock value in late January.
In conclusion, the after-hours stock movements of Nvidia, Bumble, Etsy, and Lucid have shown a mixed bag of results. Nvidia’s strong earnings and announcement of offering AI as a cloud service have kept the chipmaker’s stock rising, despite the slowdown in its gaming market. Bumble’s revenue growth and user base increase are encouraging, but the wider-than-expected adjusted loss per share has impacted the stock reaction. Etsy’s record fourth-quarter revenue has beaten Wall Street expectations, despite recent criticism from a short-seller. Finally, Lucid has missed revenue expectations and faced challenges with production growth. While the stocks have experienced volatility, investors will continue to monitor their performance closely in the coming months.