In this article, we will take a look at the 10 media and internet stocks to watch after latest earnings. If you want to see some more stocks from the same category, go directly to 5 Media and Internet Stocks to Watch After Latest Earnings.
Notable companies from the communication services sector, including The Walt Disney Company (NYSE:DIS), Roblox Corporation (NYSE:RBLX) and Take-Two Interactive Software, Inc. (NASDAQ:TTWO), are trending after their recent earnings.
Shares of The Walt Disney Company (NYSE:DIS) rose in the pre-market trading session on Thursday, August 11, following its upbeat financial performance. On the other hand, Roblox Corporation (NYSE:RBLX) and Take-Two Interactive Software, Inc. (NASDAQ:TTWO) also traded on heavy volume after posting their quarterly results earlier this week.
In the remaining article, we will review the latest financial performance of these companies, along with some other communication services stocks.
Photo by Chris Liverani on Unsplash
10. Dolby Laboratories, Inc. (NYSE:DLB)
Number of Hedge Fund Holders: 22
Dolby Laboratories, Inc. (NYSE:DLB) beat profit expectations for its fiscal third quarter, sending its shares up nearly five percent on Wednesday, August 10, 2022. The company, which creates audio and visual technologies for notable streaming platforms, reported adjusted earnings of 68 cents per share, above the consensus of 58 cents.
Revenue for the quarter came in at $289.6 million, while analysts were looking for revenue of $294.04 million. Dolby Laboratories, Inc. (NYSE:DLB) also updated its financial outlook for the current quarter.
Dolby Laboratories, Inc. (NYSE:DLB) now expects adjusted earnings in the range of 68 – 83 cents per share and revenue between $295 – $325 million for its fiscal fourth quarter.
9. Nextdoor Holdings, Inc. (NYSE:KIND)
Number of Hedge Fund Holders: 23
Nextdoor Holdings, Inc. (NYSE:KIND) posted a wider-than-expected loss for the second quarter and lowered its sales outlook for the full year. As a result, its shares lost nearly 25 percent of their value on Wednesday, August 10, 2022.
The provider of hyperlocal social networking service for neighborhoods reported a loss of 10 cents per share, wider than analysts’ average estimate for a loss of 5 cents per share. In addition, Nextdoor Holdings, Inc. (NYSE:KIND) posted revenue of $54.54 million for the quarter, up 19 percent over the year-ago period, but slightly below the consensus of $55.22 million.
For the full year, Nextdoor Holdings, Inc. (NYSE:KIND) now anticipates revenue in the range of $220 – $225 million, compared to its previous guidance between $252 – $256 million.
In a letter to shareholders, Nextdoor Holdings, Inc. (NYSE:KIND) said in a statement:
“In Q2, the global economy experienced increasingly complex macroeconomic conditions that affected our customers and markets alike. The continuing war in Ukraine, supply chain bottlenecks, rising interest rates, record levels of inflation, and increased risk of a recession have led to heightened levels of caution across industries as neighbors and businesses plan for an uncertain future.”
8. Angi Inc. (NASDAQ:ANGI)
Number of Hedge Fund Holders: 27
Shares of Angi Inc. (NASDAQ:ANGI) plummeted over 15 percent on Wednesday, August 15, 2022, despite posting better-than-expected financial results for the second quarter. The internet services company reported a loss of 5 cents per share, compared to a loss of 6 cents per share in the same period last year.
Revenue for the quarter jumped 23 percent on a year-over-year basis to $515.8 million. Analysts expected Angi Inc. (NASDAQ:ANGI) to lose 6 cents per share on revenue of $492.76 million.
Among other updates, Angi Inc. (NASDAQ:ANGI) reported that its free cash flow in the quarter fell to a negative $55.1 million, from a positive $23.5 million in the year-ago period. Angi Inc. (NASDAQ:ANGI) blamed higher capital expenditures and weak adjusted EBITDA for the drop.
Like Angi Inc. (NASDAQ:ANGI), other communication services stocks, including The Walt Disney Company (NYSE:DIS), Roblox Corporation (NYSE:RBLX) and Take-Two Interactive Software, Inc. (NASDAQ:TTWO) also came into the spotlight after their recent earnings.
7. CarGurus, Inc. (NASDAQ:CARG)
Number of Hedge Fund Holders: 29
CarGurus, Inc. (NASDAQ:CARG) announced better-than-expected financial results for Q2. However, the automotive research and shopping website issued a weak sales outlook for the current quarter, sending its shares to a new 52-week low on Tuesday, August 9, 2022.
For the second quarter, CarGurus, Inc. (NASDAQ:CARG) reported adjusted earnings of 32 cents per share on revenue of $511.2 million. This compares to the consensus of 31 cents per share for earnings and $505.85 million for revenue.
Looking forward, CarGurus, Inc. (NASDAQ:CARG) expects to generate revenue in the range of $460 – $490 million in the third quarter. That’s well below analysts’ average estimate of $555.6 million.
A number of research firms cut their price targets for CarGurus, Inc. (NASDAQ:CARG), citing weak Q3 guidance. Raymond James trimmed its price target from $34 to $28, Oppenheimer reduced its price target from $38 to $32 and RBC Capital slashed its price target from $45 to $35.
6. Warner Music Group Corp. (NASDAQ:WMG)
Number of Hedge Fund Holders: 34
Shares of Warner Music Group Corp. (NASDAQ:WMG) initially fell but later rebounded following its fiscal third quarter results on Tuesday, August 9, 2022. The music company reported earnings of 24 cents per share, representing a two-fold surge over 12 cents per share in the year-ago period.
In addition, Warner Music Group Corp. (NASDAQ:WMG) posted revenue of $1.43 billion, up 6.9 percent on a year-over-year basis. The results easily surpassed the consensus of 19 cents per share for earnings and $1.41 billion for revenue.
Warner Music Group Corp. (NASDAQ:WMG) also disclosed its segment-wise sales performance. Its recorded music revenue increased 3.2 percent to $1.19 billion, while music publishing revenue climbed nearly 30 percent to $245 million in the quarter.
Separately, investment management firm Cooper Investors mentioned Warner Music Group Corp. (NASDAQ:WMG) in its first-quarter 2022 investor letter, stating:
“Warner Music was also sold to fund new investments. The business is entering a period of significant capital deployment that is more extensive than we expected, representing a change to our original value propositions. While these investment phases make sense for longer-term strategic positioning, they also raise execution risk and push free cash flow growth further to the right at a time when other Watchlist stocks have been on sale.”
Click to continue reading and see 5 Media and Internet Stocks to Watch After Latest Earnings.
Suggested articles:
- 10 Micro-Cap Stocks to Buy According to Cathie Wood
- 10 Dividend Stocks With Over 7% Yield
- 10 Stocks to Buy According to Carison Capital
Disclosure: None. 10 Media and Internet Stocks to Watch After Latest Earnings is originally published on Insider Monkey.
