My top 10 things to watch for on Wednesday, Aug. 7: 1. Disney came out on top, beating analyst estimates on both revenue and earnings. Plus a big raise in earnings guidance. It was about time. Adjusted earnings per share for the third fiscal quarter were $1.39, up 35% year over year. The company’s combined streaming businesses (Disney+, Hulu, and ESPN+) turned positive for the first time, ahead of schedule. The entertainment segment rose 4%, much better than expected. And yet shares fell about 1% in premarket trading. 2. Airbnb’s second-quarter results on Tuesday were a big disappointment, with the vacation rental company citing slowing demand from U.S. guests. It actually looks like a short-term peak. Shares fell 14%. 3. CVS Health reported better-than-expected earnings on Wednesday. Adjusted earnings per share were $1.83, up from $1.73. Revenue was $91.23 billion, up from $91.5 billion expected. However, the drugstore chain cut its full-year earnings forecast due to higher medical costs. The company expects adjusted earnings of $6.40 to $6.65 per share in 2024, up from at least $7 per share. It has closed 600 stores since 2022 and expects to close another 300 this year. I have CEO Karen Lynch on “Mad Money” tonight. 4. Reddit reported second-quarter revenue of $281 million on Wednesday, up from $254 million expected. I like the number, the growing user base — 91.2 million daily active users, beating estimates of 84.5 million. Good commentary, lots to like. Confident presentation. Piper Sandler raised his price target on RDDT shares to $70 from $65. Loop Capital raised the price target to $80 from $75. Reddit shares gained 1%. 5. Super Micro is no longer a proxy for Nvidia due to margin issues. Bank of America downgraded the server maker to “hold” from “buy.” Truly awful conference call. Big earnings per share (EPS) miss, but not a revenue miss. Super Micro also announced a 1-for-10 stock split. Shares fell over 14%. 6. Instacart posted a staggering 20 cents per share profit, beating estimates of 13 cents. That’s like Uber. The grocery delivery service trades at 9 times EBITDA. Instacart, which trades publicly as Maplebear, announced in February that it would lay off 250 employees, or about 7% of the company, as part of a restructuring to focus on higher-margin projects. Shares rose over 9% following the report. 7. Fortinet had a much better-than-expected second quarter. Cybersecurity continued to be very strong. Earnings per share came in at 57 cents, beating the consensus forecast of 41 cents. Strong billing. The company expects full-year adjusted earnings between $2.13 and $2.19 per share, versus estimates of $1.76 per share. 8. Caterpillar is a competitive stock, with price targets going up and down. I thought it was an excellent quarter. The industrial giant handily beat Wall Street’s second-quarter earnings estimates on Tuesday, earning $5.99 per share versus expectations of $5.54. 9. Wynn Resorts has seen its price targets cut multiple times. Macau is driving the negative sentiment. We exited our position in Wynn on Monday. Our view: If the casino operator can’t deliver robust results in Las Vegas and Boston in the coming quarters, it will be even harder to justify owning a stock that is so heavily focused on China. 10. Toast: The end of the love affair with the SaaS company? Increased pressure on average revenue per user, more competition. Sign up for my free email newsletter, Top 10 Morning Thoughts on the Market (you can find a full list of Jim Cramer’s Charitable Trust stocks here). As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. After sending a trade alert, Jim waits 45 minutes before buying or selling a stock from his charitable trust’s portfolio. When Jim has discussed a stock on TV, he waits 72 hours after the trade alert before executing the trade. THE INVESTING CLUB INFORMATION MENTIONED ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY AND OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS AND WILL NOT BE CREATED BY RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO PARTICULAR RESULT OR RESULT IS GUARANTEED.
Amy Poehler and Maya Hawke voice Joy and Anxiety in Disney and Pixar’s “Inside Out 2.”
Disney | Pixar
My top 10 things to see on Wednesday, August 7th
1.Disney with a stunning result that exceeded analysts’ estimates for revenue and profit. In addition, the earnings forecast was raised significantly. It was about time. Adjusted earnings per share for the third fiscal quarter were $1.39, 35% higher than the previous year. The company’s combined streaming businesses (Disney+, Hulu and ESPN+) achieved positive numbers for the first time, and ahead of schedule. The entertainment segment grew by 4%, much better than expected. And yet shares lost about 1% in premarket trading.
2.AirbnbSecond-quarter results on Tuesday were a major disappointment, and the vacation rental company cited slowing demand from U.S. guests. It actually looks like a short-term peak, with shares falling 14%.
3.CVS Health on Wednesday reported better-than-expected earnings. Earnings per share were $1.83 adjusted, versus $1.73. Revenue was $91.23 billion, versus $91.5 billion expected. However, the drugstore chain lowered its full-year earnings forecast due to higher medical costs. The company expects adjusted earnings of $6.40 to $6.65 per share in 2024, a decline of at least $7.per share. Since 2022, the company has closed 600 stores and expects to close another 300 this year. Tonight I’m speaking with CEO Karen Lynch on “Mad Money.”
