Here we look at some of the biggest movers last week, while only considering the companies with a market cap of at least $5 billion.
Manufacturer and seller of streaming devices Roku (ROKU:US) shares increased by as much as 50% last week after the video streaming company reported better-than-expected results for the third quarter and offered guidance that topped analyst expectations.
The stock added 32% on Thursday, the biggest single-day gain since July. The move came after Roku said its revenue jumped 20% annually to $912 million, cruising the expected $860 million.
Moreover, the company said it expects to record positive adjusted EBITDA in the fourth quarter. A figure of $10 million has been communicated to investors while analysts were expecting a loss of as much as $57.6 million.
Paycom Software Inc
American online payroll and human resource technology provider Paycom (PAYC:US) witnessed a sharp decline last week after the employment software company significantly reduced its full-year forecast. This disappointing quarterly earnings update has prompted multiple brokerages to downgrade their rating on the stock, applying further downside pressure on shares.
Paycom Software reported adjusted earnings per share of $1.77, which showed an improvement from $1.27 year-over-year and ahead of the estimated $1.60. The company's revenue for the third quarter amounted to $406.3 million, reflecting a 22% YoY increase but falling short of the estimated $411.1 million.
Paycom Software anticipates revenue for this quarter to be in the range of $420 million - $425 million. The full-year revenue outlook is now expected to fall between $1.679 billion and $1.684 billion, representing a reduction from its previous forecast.
Analysts' expectations for the fourth quarter revenue were notably higher, with an estimated figure of $453.3 million. Similarly, the analysts were anticipating full-year revenue to reach $1.72 billion, which is above the company's revised guidance.
Canadian multinational e-commerce company Shopify (SHOP:US) stock added 32% in the week behind us after the company's report of third-quarter revenue that exceeded the consensus estimate. Analysts have specifically highlighted the positive aspect of margins in their assessment.
Shopify's adjusted operating margin for the third quarter stood at 16%, surpassing the consensus estimate of 10%. This robust margin performance underscores the inherent leverage in Shopify's business model and affirms the strategic wisdom of moving away from logistics.
The company's high-teens sales guidance for the fourth quarter, although slightly below the consensus estimate of 20%, could indicate a sense of conservatism, possibly influenced by the challenging economic conditions and potential pressures on small businesses.
For the third quarter, Shopify reported adjusted revenue of $1.71 billion, up 25% YoY and ahead of the expected $1.68 billion. Adjusted EPS came in at $0.24, exceeding the $0.15 expectations.
One of the largest food delivery companies in the United States, DoorDash (DASH:US) added more than 30% last week after the delivery services business reported stronger-than-expected results for the last quarter. This surge comes after the company reported a record volume of customer orders in the third quarter and raised its outlook for the year, reaffirming its dominant position in the food and retail delivery markets.
For the fourth quarter, DoorDash anticipates a Marketplace gross order value in the range of $17 billion to $17.4 billion, exceeding the consensus estimate of $16.35 billion. Additionally, the company expects adjusted EBITDA to be in the range of $320 million to $380 million, surpassing the estimate of $252.1 million.
In the third quarter, DoorDash reported revenue of $2.16 billion, reflecting a 27% YoY increase and exceeding the estimate of $2.1 billion. The Marketplace gross order value reached $16.75 billion, marking a 24% year-over-year increase and surpassing the estimate of $15.87 billion.
DoorDash also achieved an adjusted gross margin of 48.7%, up from 47.4% year-over-year and exceeding the estimate of 48.4%. The company reported a loss per share of $0.19 cents, an improvement from the loss per share of $0.77 cents in the same period last year.
Paramount Global Inc
Mass media and entertainment conglomerate controlled by National Amusements Paramount Global (PARA:US) was also seen surging last week following the release of the media company's third-quarter results. The earnings report exceeded expectations, primarily due to the reduction of losses in the company's streaming business.
In the third quarter, Paramount reported adjusted earnings per share from continuing operations of $0.30, surpassing the consensus estimate of $0.10. Earnings per share from continuing operations were $0.36.
The company achieved total revenue of $7.13 billion, reflecting a 3.1% YoY increase, slightly below the estimate of $7.15 billion. Notably, the direct-to-consumer revenue reached $1.69 billion, exceeding the estimate of $1.64 billion.
Paramount+ experienced a remarkable 61% increase in revenue and reached over 63 million global subscribers. Additionally, global viewing hours across Paramount+ and Pluto TV surged by 46%.
The company also anticipates that direct-to-consumer losses in 2023 will be lower than those in 2022 and remains on track to achieve substantial total company earnings growth in 2024.