WeWork, the shared workspace company, is facing a significant setback as its shares plummeted by 35.5%. This decline follows a report from the Wall Street Journal that the company is planning to file for Chapter 11 bankruptcy protection in the coming week.
Another notable company, Advanced Micro Devices (AMD), also experienced a dip in its stock value. The chipmaker saw its shares decrease by over 1% after issuing a revenue guidance for the fourth quarter that fell below expectations. However, AMD provided positive guidance for its data center GPU segment for the year 2024.
In contrast to WeWork and AMD, auto makers Ford and General Motors observed an increase in their stock values. Both companies rose by more than 1% after being upgraded by Barclays from equal weight to overweight. Barclays cited attractive valuations due to the stock declines in October, stating, “We believe the different pressures on the business have created ‘peak pain,’ yielding trading multiples at historical lows.”
CVS, the pharmacy chain and owner of Aetna insurance, reported an earnings and revenue beat for the third quarter. However, despite this positive news, the company’s shares fell by 1.5%. One factor contributing to the decline was medical benefit costs, which came in at 85.7% of premiums, 1% higher than estimates. CVS attributed this increase to higher outpatient care and Medicare Advantage utilization.
Match Group, the owner of dating service platforms, experienced an 8.3% drop in its shares due to weaker-than-estimated revenue guidance for the fourth quarter. The company forecasted revenue between $855 million and $865 million, falling short of analysts’ expectations of $895 million.
Wayfair, an online furniture retailer, saw its stock tumble by 12% as its third quarter revenue failed to meet analyst expectations. Wayfair reported $2.94 billion in revenue, which was lower than the estimated $2.98 billion, according to consensus numbers from LSEG. However, the company’s adjusted loss of 13 cents per share was narrower than the anticipated loss of 48 cents.
Following the release of its third quarter earnings, ZoomInfo Technologies, a sales and marketing technology platform, experienced a 2.4% decrease in its stock value. This decline came after Goldman Sachs downgraded ZoomInfo from buy to neutral. While ZoomInfo surpassed sales and earnings expectations, it provided soft guidance for current quarter earnings and operating income.
Insurance company Humana witnessed a 2.8% drop in its shares after lowering its full-year guidance for non-adjusted earnings per share. Despite beating the Wall Street consensus estimate for third quarter adjusted earnings per share of $7.78, Humana only reaffirmed its full-year guidance for adjusted earnings per share.
The beauty products company Estee Lauder suffered a significant decline of more than 14% following the release of its earnings guidance for the current quarter and full fiscal-year. These estimates fell far below analyst expectations. Estee Lauder also predicted a decline of 9% to 11% in revenue growth for the current quarter, while analysts had expected a 2.2% increase.
On the other hand, the ketchup maker Kraft Heinz Company observed a 1.5% increase in its shares after raising its full-year earnings per share guidance. Additionally, the company reported higher-than-expected earnings per share of 72 cents in the third quarter.
Paycom Software, a software technology company, faced a sharp decline of over 36% after its third-quarter revenue fell short of estimates. While the company’s earnings per share exceeded forecasts, reaching $1.77 excluding items, the revenue of $406.3 million missed the estimated $411.2 million.
Yum China Holdings, a China-based restaurant company, experienced a stock decrease of over 12% due to its third-quarter revenue falling below estimates. Yum reported $2.91 billion in revenue, while analysts had expected $3.06 billion.
Contrasting the trend of declining shares, Caesars Entertainment, a gaming company, saw a rise of 5% before the bell after surpassing Wall Street’s third-quarter earnings expectations. Caesars posted earnings of 34 cents per share on $2.99 billion in revenue, outperforming analysts’ estimated earnings of 29 cents per share and revenue of $2.93 billion.
This news roundup includes information gathered by CNBC’s Fred Imbert, Alex Harring, Jesse Pound, Samantha Subin, and Sarah Min.
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