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5 big earnings reports: Beyond Meat stock on fire, Carvana slides | Pro Recap

Published 02/24/2023, 06:15 AM
Updated 02/24/2023, 07:28 AM
© Reuters -- Here is your daily Pro Recap of the biggest earnings headlines you may have missed on InvestingPro since yesterday’s close. Start your free 7-day trial to get this news first.

Beyond Meat surges on better-than-feared Q4 loss

Beyond Meat (NASDAQ:BYND) rose a scorching 14% premarket after the plant-based meat maker lost just $1.05 a share in 4Q, better than the $1.18 consensus estimate. Sales also came in better than expected - $79.9 million vs. the $75.9M consensus - even though it was down 20.6% year over year. 

The company also posted a revenue guidance range of $375M to $415M, the midpoint of which is slightly better than the average analyst estimate of $391.4M.

Bernstein hiked Beyond Meat's price target to $18 per share from the prior $10 and maintained its Market Perform rating on the stock, saying it expects the stock "will remain range bound at these levels until a clear path to financial viability is clearer."

Piper Sandler is more bearish, reiterating an Underweight rating and a $6 per share price target. The research firm wrote, "Retail sales declines continue to accelerate, and steady sales from its recently launched jerky are masking a greater acceleration in declines for the rest of its portfolio. Improvement may come in 2H23, consistent with guidance, but we still expect further downside near term, and many fundamental challenges remain that are not quickly fixed."

Shares were lately trading at $17.14 before the bell.

Carvana loss steeper than than anticipated

Carvana (NYSE:CVNA) was off more than 4% in the premarket after the online used-car platform said it lost far more in 4Q than Wall Street had expected - $7.61 per share vs. the $2.12 estimate. Revenue, at $2.84B, was also worse than the $3.07B consensus.

Looking ahead, the company warned of a further drop in sales, forecasting a “sequential reduction in retail units sold in Q1 2023 compared to Q4 2022.”

After the report, BofA Securities and Deutsche Bank both lowered their price targets on the stock to $10 - the former from $12, the latter from $16. Deutsche Bank said, it believes 2023 retail units "will likely decline vs. 2022," given the macro backdrop and Carvana's continued efforts at "right-sizing its business," which means the company "intentionally keeping its advertising expense and inventory levels lower, which leads to lower retail units sold."

The shares, which lost 98% of their value last year amid a struggling used-car market, were recently trading at $10.08 in premarket.

Block delights analysts with solid earnings guidance

Block (NYSE:SQ) flew more than 7% higher before the bell after the Cash App operator said it expects EBITDA to come in at $1.3B for all of 2023, better than the $1.28B average analyst estimate.

Q4 earnings, at $0.22 per share, missed by $0.08. But Wolfe Research analysts hiked their price target by $15 to $95 per share, saying EBITDA visibility is a “welcome sight.”

“SQ intends to hold its stated profit targets for 2023, suggesting the ability to flex its spending in the event that growth comes in slower than expected. We believe this may give investors a sense of increased visibility into future profitability, something that some have found to be uncertain at points prior to the print,” they said in a note.

KeyBanc analysts reiterated a Key Idea designation on Block after earnings.

Shares were recently changing hands at $79.50 premarket.

Booking surpasses estimates on travel uptick

Booking (NASDAQ:BKNG) said it earned $24.74 per share in the fourth quarter, topping the Street's expectations for $22, and revenue of $4B was just ahead of estimates as well.

Q4 gross travel bookings totaled $27.3B, up 44% year over year (or 58% on a constant-currency basis). Room nights booked climbed 39% over last year.

JPMorgan reiterated a Top Idea designation on the stock and raised the price target to $2,850 per share on "solid" Q4 results. Piper Sandler analysts also hiked the price target as they went to $2,524 from $2,050 per share.

Shares were slipping fractionally at $2,426.49 ahead of the bell.

Intuit beats on earnings, issues conservative guidance

Intuit (NASDAQ:INTU) reported earning $2.20 per share in the fiscal second quarter, handsomely beating the average analyst estimate of $1.47, and its $3B top line topped the $2.91B expectations. Guidance for Q3 came in well under consensus -  $8.42 to $8.49 per share vs. the $8.92 estimate - but full-year guidance of $13.59 to $13.89 squared with analysts' expectations for $13.68.

Mizuho analysts believe Intuit de-risked FY23 after offering conservative guidance. The analysts also noted that its CFO transition “could be a slight negative to a strong set of FQ2 results.”

Shares were up marginally to $411.88 in premarket action.

Senad Karaahmetovic, Yasin Ebrahim, and Davit Kirakosyan contributed to this report.

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There ain't nobody eating that crap.
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