From Nasdaq: 2024-05-08 10:45:00

Pre-market futures are down, with the Dow (-78 points), Nasdaq (-113 points), S&P 500 (-22 points), and Russell 2000 (-15 points) in red. No major economic data is expected this week, but wholesale inventory numbers and Fed appearances could affect trading. Tesla faces SEC scrutiny, causing a -3.6% drop in shares.

Earnings reports show weak consumer spending trends, impacting Spotify (-19%), Uber (-7%), and Hain Celestial (+6%). Affirm Holdings posts positive results, beating expectations with improved revenues and guidance. The stock is up +2.3% in pre-market trading.Quarterly earnings reports paint an unflattering picture this morning. Most of this pivots on overall consumer behavior, across many lines; we’ve seen the consumer shy away from higher costs in previous earnings reports from Starbucks SBUX and elsewhere. Spotify SPOT shares are down -19% at this hour on a big swing to negative earnings (-$0.21 per share versus +$0.16 expected and +$0.01 per share reported a year ago). Revenues came in slightly ahead of estimates to $1.9 billion in the quarter, but a 50-basis-point (bps) slide in Gross Margins offset growth in Gross Merchandise Volumes (+23% year over year) and Gross Payment Volumes (+60%).

Uber posted similar Q1 results ahead of today’s open. Earnings swung to a negative -32 cents per share from an expected +21 cents (and well below the year-ago -8 cents per share) on revenues of $10.13 billion, which eked out a beat over the Zacks consensus. Gross Bookings rose +20% year over year and adjusted EBITDA reached +82% to $1.4 billion, but shares are tumbling more than -7% so far in pre-market activity.

Hain Celestial, meanwhile, missed on both top and bottom lines. Negative earnings of -12 cents per share missed the +7 cents anticipated (off the +8 cents per share posted a year ago) on $438.4 million in revenues, which was well short of the $465.7 million analysts were looking for. Business in North America fell -9.8% in the quarter for the tea and healthy snack distributor, which was slightly offset by a +9.3% gain in its International segment. Free cash flow grew an impressive +104% year over year, which has helped the stock gain +6% in early trading.

Meanwhile, Affirm Holdings posted a good fiscal Q3 this morning. An earnings loss of -43 cents per share was an improvement on the -70 cents expected (and -69 cents per share reported a year ago) on $576 million in revenues, which outpaced the $548 million in the Zacks consensus, +51% year over year for the “buy now, pay later” fintech company. Next-quarter revenue guidance has increased to $595 million from the $569.4 million previously projected, and shares in the pre-market session are up +2.3%.



Read more at Nasdaq: Quarterly Earnings Reports Summary | Nasdaq