Lyft, Robinhood, Zillow, Kraft Heinz and more | Private Equity Weekly
Here’s a look at the companies making headlines before the bell: Lyft — Shares of Lyft soared 21% after the ride-hailing company reported stronger-than-expected fourth-quarter results and issued better-than-expected guidance. In the most recent quarter, Lyft reported adjusted earnings of 18 cents per share, beating the LSEG consensus estimate of 8 cents per share. Revenue of $1.22 billion was in line with analyst expectations. However, Lyft’s shares are off Tuesday’s after-hours highs as the company corrected the overestimation of its profit margin forecast in its initial press release. Robinhood Markets — The investment platform’s fourth-quarter profit and revenue beat estimates, sending its shares soaring about 16.5%. Robinhood reported a profit of 3 cents a share on revenue of $471 million, while analysts polled by LSEG forecast a loss of 1 cent a share on revenue of $457 million. Angi shares rose 7% after the home services platform reported a narrower-than-expected quarterly loss. Angi reported a fourth-quarter loss of 1 cent per share, below the 2 cents per share loss expected by analysts polled by FactSet. On the other hand, revenue of $300.4 million was below the FactSet consensus estimate of $309.9 million. DaVita — Shares of DaVita rose more than 7% after the healthcare company reported better-than-expected fourth-quarter profit and revenue. DaVita reported adjusted earnings of $1.87 per share on revenue of $3.15 billion. Analysts polled by FactSet expected earnings of $1.63 per share and revenue of $3.01 billion. Zillow Group — The real estate market reported earnings of 20 cents a share on revenue of $474 million, beating analysts’ expectations of 12 cents a share on revenue of $452 million, according to LSEG, sending shares up more than 5% premarket. Kraft Heinz — Shares of Kraft Heinz fell more than 1% after the food company reported fourth-quarter revenue that missed expectations. Kraft Heinz reported revenue of $6.86 billion, missing the LSEG consensus estimate of $6.99 billion. However, adjusted earnings of 78 cents per share were slightly higher than analysts’ expectations of 77 cents. Akamai Technologies — Shares of Akamai Technologies fell 5.4% after the server networking provider’s fourth-quarter revenue missed analysts’ expectations. Akamai reported revenue of $995 million, below the $998 million forecast by analysts surveyed by LSEG. Still, the company reported earnings of $1.69 per share, excluding items, beating Wall Street expectations of $1.60. Akamai also issued guidance for the current quarter and full year, which was generally in line with analyst expectations. GoDaddy — Shares of the website hosting company fell about 2% despite a fourth-quarter report that showed revenue in line with expectations. GoDaddy reported revenue of $1.1 billion, in line with estimates from analysts polled by FactSet. However, the company’s 2024 revenue guidance of $4.48 billion to $4.56 billion was near the low end of estimates, with the average estimate of $4.55 billion. SentinelOne — The cybersecurity stock surged 6.2% in premarket trading as Bank of America upgraded its rating to “buy” from “neutral.” SentinelOne is feeling positive momentum from strong industry and macro trends, the company said. Crypto Stocks – Stocks whose performance is tied to the price of Bitcoin surged after the cryptocurrency rose to more than two-year highs and regained a $1 trillion market capitalization. Trading platform Coinbase and Bitcoin agency Microstrategy each rose 7%. Miners Iris Energy and CleanSpark were up 17% and 14% respectively, Marathon Digital was up 12%, and Riot Platforms was up 9%. Airbnb — The vacation property rental stock fell 4% despite posting stronger-than-expected revenue and upbeat guidance. Airbnb warned there will be some pressure on the number of room nights booked in the first quarter due to strict comparisons. Upstart — The online lending company reported a fourth-quarter adjusted loss of 11 cents a share, missing analysts’ expectations of 14 cents a share, sending its shares down 14%, according to LSEG. Revenue for the quarter was $140 million, beating analysts’ expectations of $135 million. Wingstop — Shares of Wingstop rose nearly 3% after Bernstein initiated an outperform rating on the restaurant stock and called the company a “multi-decade growth” story. MGM Resorts International — Shares of MGM Resorts International fell more than 3% even as the casino operator beat fourth-quarter revenue and profit estimates. MGM’s China business beat expectations, but its U.S. casino business was hurt by the fallout from a workers’ strike in Detroit. Topgolf Callaway Brands – Shares of Topgolf Callaway Brands fell more than 3% after the golf company issued first-quarter revenue guidance that fell short of expectations. Topgolf Callaway Brands expects first-quarter revenue between $1.14 billion and $1.16 billion. Analysts polled by London Stock Exchange Group (LSEG) expected $1.22 billion. Ecolab — Shares of the food safety company fell 1.6%. J.P. Morgan downgraded Ecolab to neutral from overweight, citing the stock’s recent outperformance. It’s up more than 11% this year. However, the Wall Street firm raised its price target to $220 from $200. Ecolab shares closed at $221.18 on Tuesday. —CNBC’s Brian Evans, Alex Harring, Tanaya Macheel, Jesse Pound, Pia Singh and Samantha Subin briefed
