Earnings news remained the main focus during midday trading on Thursday. Southwest Airlines (LUV), Stanley Black & Decker (SWK) and ServiceNow (NOW) all fell following the release of their respective quarterly results.
Meanwhile, the announcement of financial numbers caused a rally in Etsy shares (ETSY).
Decliners
Southwest Airlines (LUV) lost ground following the release of its quarterly results, falling 8%.
The company beat expectations on its quarterly earnings and revenue was up 68% from last year. However, investors focused on cost and capacity concerns, with LUV warning of “cost headwinds” and capacity levels likely to remain “somewhat in line with third quarter 2019.”
The release of quarterly results also puts pressure on Stanley Black & Decker (SWK). The tool maker’s earnings and profits were below analysts’ forecasts. At the same time, the company announced a cost-cutting initiative aimed at saving $1B by the end of 2023.
“As the demand environment softened rapidly in the latter part of the quarter, we began to take immediate cost-corrective actions, which we continue to implement,” said CEO Donald Allan Jr. Based on the earnings news, SWK fell 12% in intraday trading.
ServiceNow (NOW) represented another stock that suffered selling pressure in response to its quarterly update. Shares fell nearly 2% after the company cut its 2022 subscription revenue guidance.
The cloud computing platform beat estimates in its Q2 results, with revenue up 30% from last year. However, the company lowered its 2022 subscription revenue, saying it now expects a figure between $6.915B and $6.925B. Previously, the firm projected a range between $7.03B and $7.04B.
Gainers
The earnings news spurred buying on Etsy (ETSY). The ecommerce platform reported a quarterly profit that beat analysts’ expectations, with revenue up 11% from last year.
“We see a lot of scenarios that are possible for the rest of 2022, but everything still points to very healthy profitability overall,” said Etsy CEO Josh Silverman. The quarterly report sparked a 10% rally in intraday trading.
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