4 stocks that soared in the past week after reporting better-than-expected earnings
Since the beginning of the year, the benchmark stock indices have shown strong price fluctuations due to concerns about high inflation, tensions between Ukraine and Russia and upcoming interest rate hikes. But despite poor market sentiment, Block, Inc. (SQ), Farfetch Limited (FTCH), The Beauty Health Company (THE SKIN) and Overstock.com, Inc. (OSTK) soared last week as companies impressed investors with earnings that beat expectations.
SQ’s fourth quarter EPS was $0.27, beating the consensus estimate of 20.1%. And although the SQ expects its gross payments volume to be lower than forecast in the current quarter, its outlook for its fiscal year 2022 is positive after announcing strong numbers for the fourth quarter and fiscal year 2021. and a decline in its net loss for the fourth quarter. Moreover, his loss was narrower than Wall Street expectations. The company also said it expects full-year gross merchandise volume growth of between 28% and 32% for its digital platform and between 20% and 25% for its platform. -brand form.
SKIN announced a 105.5% increase in revenue in the fourth quarter. His income reached $1.61 million, excluding items, while analysts expected a net loss of $0.02 per share. And OSTK reported fourth-quarter EPS of 68 cents per share, exceeding consensus estimate of 32 cents per share.
Let’s take a closer look at these actions.
Block, Inc. (SQ)
San Francisco-based SQ is a technology company that creates tools for merchants to accept card payments and provide next-day reporting, analytics, and settlement. The company focuses on financial services. Also, its building block includes Square, Cash App, Spiral, TIDAL, and TBD54566975.
On January 31, 2022, SQ announced the acquisition of Afterpay Limited. The acquisition is expected to reinforce SQ’s strategic priorities for its existing Square and Cash App ecosystems. The acquisition is also intended to enable SQ to offer compelling financial products and services that broaden access to more consumers and help generate added value for sellers of all sizes.
SQ announced its fourth quarter results on February 24. The company’s net revenue increased 29.1% year-on-year to $4.07 billion for the quarter ended December 31, 2021. Its adjusted net income for its fiscal year 2021 increased 110.4% year-on-year annual. year to $897.56 million, while its Adjusted EPS was $1.71, representing a 103.5% year-over-year increase. Also, his Adjusted EBITDA grew 113.8% year over year to $1.01 billion.
Analysts expect SQ’s FY2023 EPS and revenue to grow 44.5% and 20.6% year-over-year to $2.37 billion and $22.87 billion of dollars. It has exceeded Wall Street EPS estimates in three of the past four quarters. Over the past week, the stock has gained 43.7% in price.
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Farfetch Limited (FTCH)
London-based FTCH is a technology platform for the global fashion industry. The Company’s segments include Digital Media, Brand Platforms and Stores. Its digital platform segment includes Farfetch Marketplace, BrownsFashions.com and others. The Brand Platform segment includes brands owned and licensed by New Guards and has franchise store operations, while the in-store portion covers the operations of stores operated by it, such as Browns, Stadium Goods and others.
On December 9, 2021, FTCH announced that it had acquired LUXCLUSIF, a resale platform. The acquisition will allow FTCH to accelerate its resale capabilities by developing key technologies and service features.
FTCH released its fourth quarter and full year results on February 24, 2022. The company’s gross merchandise value increased 21.9% year-over-year to $1.28 billion for the fourth quarter ended December 31, 2021. Additionally, its revenue increased 23.2% year-over-year to $665.65 million. Additionally, its adjusted EBITDA increased 247.9% year-over-year to $36.10 million.
For its 2023 fiscal year, FTCH’s EPS is expected to rise 311.1% year-over-year to $0.37. Its revenue for the quarter ending June 30, 2022 is expected to increase 32.9% year-over-year to $660.61 million. It has exceeded consensus EPS estimates in three of the past four quarters. Over the past week, the stock has gained 33.5% in price.
Beauty Health Company (THE SKIN)
SKIN designs, develops, manufactures, markets and sells aesthetic technologies and products worldwide. the Based in Long Beach, CA The company offers HydraFacial and PERK hydradermabrasion systems that enhance skin to simultaneously cleanse, exfoliate, extract and hydrate. It also operates HydraFacial CONNECT, an anesthesia certification program that provides training through live online education programs.
On February 22, 2022, SKIN released its fourth quarter and full year results. Its net sales increased 105.5% year-over-year to $77.88 million in the fourth quarter ended December 31, 2021. Its adjusted net income was $1.61 million. , compared to an adjusted loss of $2 million in the same period last year. . Additionally, its adjusted EBITDA increased 136.1% year-over-year to $8.48 million.
Analysts expect SKIN’s FY2023 EPS and revenue to grow 300% and 25.7%, respectively, year-over-year to 0.16 and 407.86 millions of dollars. Over the past week, the stock has gained 17.2% in price.
Overstock.com, Inc. (OSTK)
OSTK operates as an online retailer in the United States. Salt Company of Lake City, Utah operates through the Retail, tZero and Medici Ventures segments. The company offers furniture and home décor items, including area rugs, bedding and bath, home improvement, kitchen and dining items. It provides commercial advertising products and services on its website. Furthermore, it focuses on the development and management of financial applications of blockchain technologies.
OSTK announced its fourth quarter and fiscal year 2021 results on February 23, 2022. Its cost of sales decreased 8.7% year-over-year to $473.81 million for the fourth quarter ended December 31, 2021. The company’s net income increased 161.7% year-over-year to $32.94 million. Additionally, its EPS came in at $0.68, representing a 161.5% year-over-year increase.
For its fiscal 2023, OSTK’s EPS and revenue are expected to increase 28.3% and 12.1%, respectively, year-over-year to $2.81 billion and $3.24 billion. It has exceeded street EPS estimates in each of the past four quarters. The stock has gained 27.1% in price over the past week.
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Shares of SQ rose $0.35 (+0.27%) in premarket trading on Tuesday. Year-to-date, the SQ is down -21.06%, compared to a -8.07% rise in the benchmark S&P 500 over the same period.
About the Author: Dipanjan Banchur
Ever since he was in elementary school, Dipanjan had been interested in the stock market. This enabled him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets. Continued…