Although the S&P 500 is trading only slightly lower, the NASDAQ is sharply in the red due to several tech earnings reports released yesterday after the closing bell. In this article, we take a look at three of these tech companies, particularly Apple Inc. (NASDAQ:AAPL), Twitter Inc (NYSE:TWTR), and eBay Inc (NASDAQ:EBAY), as well as we will discuss the earnings reports of several other non-tech companies such as Chipotle Mexican Grill, Inc. (NYSE:CMG), and Buffalo Wild Wings (NASDAQ:BWLD). Let’s also examine what hedge funds think of each of these five stocks.
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Apple Deep In the Red on Earnings Miss
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Twitter Turns in Disappointing Quarter
Twitter Inc (NYSE:TWTR) reported a mixed first quarter yesterday, and its shares have lost around 16% so far today. For the time period between January 1 and March 31, Twitter earned $0.15 per share on sales of $594.5 million, beating earnings expectations by $0.05 per share, but missing sales estimates by $13.34 million. The first-quarter number of monthly active users inched up 3% year-over-year to 310 million, while mobile monthly active users made up 83% of the total MAU base. However, the company’s guidance is a bit soft, with revenue in the range of $590 million to $610 million, which is below the analyst estimates of $677.6 million, while full-year adjusted EBITDA margin is forecasted by the company to be between 25% and 27%. The number of funds that we track that were long Twitter Inc (NYSE:TWTR) inched up by three quarter-over-quarter to 30 at the end of 2015.
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On the next page, we are going to examine the earnings reports from eBay, Chipotle Mexican Grill, and Buffalo Wild Wings.
eBay Beats Estimates
eBay Inc (NASDAQ:EBAY)’s stock has advanced by 6% after the e-commerce giant beat both earnings and sales estimates for the first quarter of 2016. eBay earned $0.47 per share on sales of $2.14 billion in the quarter, exceeding the consensus estimates by $0.02 and $60 million, respectively. The eCommerce giant’s gross merchandise volume was $20.5 billion and the company repurchased $1 billion of its common stock during the quarter. For the second quarter, the company expects revenue in the range of $2.14 billion and $2.19 billion, non-GAAP earnings per diluted share from continuing operations in the range of $0.40-$0.42 and GAAP EPS from continuing operations of $0.32-$0.34. For the full 2016, management expects net revenue between $8.6 billion and $8.8 billion. Cliff Asness’ AQR Capital Management owned more than 6.7 million shares of eBay Inc (NASDAQ:EBAY) at the end of December.
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Chipotle Lower on Mixed Quarter
Although the company has moved on from its past food safety issues, Chipotle Mexican Grill, Inc. (NYSE:CMG)‘s business is still feeling some of the negative after effects. Sales for the restaurant chain’s first quarter dropped 23.4% year-over-year to $834.5 million and Chipotle posted a loss of $0.88 per share as some previously-loyal customers stayed away. The EPS was $0.07 per share higher than expectations, but the revenue was $45.71 million than estimates. Comparable restaurant sales dropped 29.7% year-over-year, while restaurant level operating margin retreated to 6.8% from the previous year’s 27.5%. The number of investors from our database holding Chipotle increased by 11 to 39 during the fourth quarter of 2015.
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Buffalo Wild Wings Flies Lower After Bad Quarter
Buffalo Wild Wings (NASDAQ:BWLD)’s shares have retreated by 13% on the back of the company missing both earnings and revenue estimates. For the first quarter, Buffalo Wild Wings posted earnings of $1.73 per share on sales of $508.3 million, missing the estimates by $0.04 and $21.99 million, respectively. Franchised same store sales dropped 2.4% year-over-year, while company–owned restaurants’ same store sales inched down by 1.7% year-over-year. Buffalo Wild Wings’ expects 2016 EPS to be between $5.65 and $5.85, versus analyst estimates of $6.10. A total of 24 funds tracked by Insider Monkey held 15.2% of Buffalo Wild Wings (NASDAQ:BWLD)’s stock heading into 2016.
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