Earnings Previews: IonQ, News Corp
After U.S. markets closed on Tuesday, WeWork reported revenue that was better than expected but a loss per share that fell way short of expectations. The really bad news came in the SEC filing: “As a result of our losses and our projected cash needs, which have been impacted by the recent increases in member churn, combined with our current liquidity level, substantial doubt exists about the Company’s ability to continue as a going concern.” Shares traded down by nearly 30% shortly after Wednesday’s opening bell.
Lyft posted a surprise earnings per share (EPS) profit of $0.16 while essentially meeting the consensus revenue estimate. Revenue rose by just $20 million sequentially and 3% year over year. The ride-sharing company’s competitive pricing move paid off, but only slightly. Investors were disappointed, and shares traded down by more than 9%.
Marathon Digital failed to meet consensus estimates for either EPS or revenue. Yet, shares traded up 3.5%.
Rivian beat expectations on both the top and bottom lines, topping the projected net loss of $1.43 per share by nearly 25%. Revenue doubled year over year, but raising production guidance from 50,000 to 52,000 units was not enough for investors. Shares traded down by around 1%.
Upstart also beat consensus estimates on the top and bottom lines, but it issued third-quarter revenue guidance of $140 million, about 10% below analysts’ expectations. Even worse, revenue dropped by 40% year over year. The stock traded down 21.6%.
Before markets opened on Wednesday morning, Roblox missed both EPS and revenue estimates. Lower demand for its online games and stiffer competition also hammered the bookings rate. Shares traded down by around 19% early Wednesday.
After markets close on Wednesday and before they open on Thursday, Alibaba, Coeur Mining and Walt Disney are expected to post quarterly results.
Here is a look at what analysts expect to hear from the following two companies when they share their quarterly earnings after Thursday’s closing bell.
IonQ
Quantum computer maker IonQ Inc. (NYSE: IONQ) came public in a SPAC merger on October 1, 2021. Since then, the stock price has improved by about 67%, a good showing but not as great as the 240% gain after the company had been publicly traded for just six weeks. By late December of last year, the shares had fallen by 90% from that high. Since early February, when Microsoft announced its AI-powered Bing search engine, IonQ’s stock has risen by more than 225%. The stock was traded even higher a week ago, up by about 320% since February.
The betting seems to be that quantum computing will play a big role in teaching the large language models central to the effectiveness of artificial intelligence. In a blog post about quantum machine learning on the company’s website, IonQ notes that it has “the potential to generate better, more accurate machine learning models, especially when used to analyze complex data with many different variables” and promises “commercialization across a wide range of use cases.”
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