These 5 Companies Recently Cut Their Profit Forecast

In this article, we discuss 5 companies that recently cut their profit forecast. If you want to see more companies that recently slashed their guidance for the year, see These 10 Companies Recently Cut Their Profit Forecast. 

5. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 25

Upstart Holdings, Inc. (NASDAQ:UPST) was founded in 2012 and is headquartered in San Mateo, California, operating as a cloud-based artificial intelligence lending platform in the United States. Although the company posted above consensus Q1 earnings and revenue, it pulled back its full-year forecast in May 2022. 

Upstart Holdings, Inc. (NASDAQ:UPST) cited climbing interest rates for the slashed guidance, claiming that they are impacting loan volume. The uncertain macro environment has added higher conservatism in the company’s forward expectations. The inflation has also led to higher than pre-pandemic loan default rates, which are hurting the balance sheet and profitability as well. 

Among the hedge funds tracked by Insider Monkey, 25 funds reported owning stakes in Upstart Holdings, Inc. (NASDAQ:UPST) at the end of March 2022, compared to 20 funds in the prior quarter. Vikram Kumar’s Kuvari Partners is a significant shareholder of the company, with 296,738 shares worth $32.3 million. 

Here is what Vulcan Value Partners has to say about Upstart Holdings, Inc. (NASDAQ:UPST) in its Q1 2022 investor letter:

“Upstart Holdings Inc. is an artificial intelligence (AI) and cloud-based lending platform. Upstart’s stock price has been very volatile, but its value has grown steadily. Last year, the company grew its revenue by over 250% organically, which materially exceeded our expectations. In addition, the company continues to generate robust free cash flow and is launching new products to expand its business. Upstart’s value has increased consistently since we first purchased it. Following our discipline, we have added to our position when its stock price has declined and its price to value ratio has improved, and we have reduced our stake when its stock price has risen faster than its value.”