Stocks put up another mixed performance on Thursday as individual earnings stories jostled for influence. Strong results from big names like McDonald’s and Caterpillar helped the Dow finish nearly 200 points higher, while the S&P 500 and Nasdaq posted losses.
Meta Platforms (NASDAQ:META) were among the main contributors to the slide on the Nasdaq, as the Facebook parent lost a quarter of its value following its latest earnings report. Meanwhile, Align Technology (ALGN) represented another standout decliner, with weak financial numbers pushing the stock to a new 52-week low.
In contrast, ServiceNow (NOW) rose to a better-than-expected profit, while Comfort Systems (FIX) reached strong results to a new 52-week high.
Standout Gainer
Even with mixed reports and cautious forecasts for subscription revenue, ServiceNow (NOW) received brisk investor interest following its quarterly update, with the stock up 13%.
The company exceeded expectations on its bottom-line results, although revenue growth of 21% missed top analysts’ consensus. NOW’s operating margin exceeded expectations.
Analysts responded positively to the results, with Morgan Stanley saying “NOW shares are positioned to perform more durably going forward.”
Following the earnings report, NOW rose $49.26 to close at $415.67. On the move, shares surpassed the 52-week low of $337 reached earlier this month. The stock remains 34% lower for 2022 as a whole.
Unique Decliner
Meta Platforms (META) rallied nearly 25% following a weak earnings release. The stock also suffered in the wake of a near sell warning.
Facebook’s parent disclosed lower-than-expected quarterly earnings, with revenues down 4% from a year ago. Total revenue of $27.7B topped analysts’ projections, but saw the social media giant rise 19%. That resulted in a 46% decrease in operating income.
Commenting on its outlook, CEO Mark Zuckerberg pointed to “near-term revenue challenges” and said the company would “focus on prioritization and efficiency” heading into 2023. He added that “the fundamentals are there for a turnaround to stronger earnings growth.”
Investors fled the stock following the quarterly update, with shares down $31.88 to close at $97.94. META also hit an intraday 52-week low of $96.38. Overall, the stock has fallen 71% in 2022.
Extraordinary New High
Better-than-expected quarterly results pushed Comfort Systems (FIX) to a new 52-week high, fueling an 8% rally on the session.
The heating, ventilation and air conditioning services provider led analysts’ consensus on both its top and bottom lines. The company’s sales jumped 34% from last year to reach $1.12B. The company also raised its dividend by 7%.
Looking ahead, FIX CEO Brian Lane said: “We continue to expect strong revenue, earnings and cash flow in the coming quarters.”
The strong results pushed FIX to an intraday 52-week high of $119.81. The stock moderated slightly before the close but still finished at $118.44, a gain of $8.76 on the day.
FIX hit a 52-week low of $74.14 in June but has fallen from that level over the summer. The stock is now up about 60% from the low and 21% higher for 2022 as a whole.
Remarkable New Low
The release of disappointing quarterly results prompted a selloff in Align Technology (ALGN). Shares fell 18% to hit a new 52-week low.
The dental products maker reported a quarterly profit that fell short of analysts’ expectations. This came as revenue fell nearly 13% to $890M.
The company blamed macro uncertainty and an unfavorable currency exchange for the disappointing results. “Underlying market dynamics, as well as reactions to macroeconomic headwinds by central banks, governments and consumers, remain uncertain,” the company’s CFO told investors in a post-earnings conference call.
Dragged down by the results, ALGN fell $40.11 to close at $181.53. During the session, the stock hit an intraday 52-week low of $176. The slide was added to a long-term retreat. Shares have fallen 72% since the end of 2021.
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