Key Takeaways
- Rivian Automotive (RIVN) forecasted a larger adjusted loss for the year than previously expected, citing recent changes to stringent fuel economy rules in the US.
- Match Group (MTCH) is pledging to invest $50 million in product development after an upbeat forecast, suggesting the beginnings of a turnaround following a year-long revenue slump.
- Advanced Micro Devices (AMD) reported Q2 revenue of $7.69 billion, surpassing estimates of $7.43 billion, though adjusted EPS of $0.48 slightly missed the $0.49 estimate.
- Snap Inc. (SNAP) reported second-quarter sales of $1.34 billion, which were shy of Wall Street's average estimates, but its Daily Active Users (DAU) reached 469 million, exceeding expectations.
- Arista Networks (ANET) delivered strong Q2 results with revenue of $2.20 billion and adjusted EPS of $0.73, both exceeding estimates, and provided an optimistic Q3 outlook.
Automotive and technology sectors saw significant movements as several companies released their latest earnings reports and updated forecasts. Electric vehicle manufacturer Rivian Automotive (RIVN) is anticipating a wider adjusted loss for the year, primarily due to recent adjustments in fuel economy regulations. The company reported a Q2 adjusted loss per share of $0.80, wider than the estimated loss of $0.63, despite revenue of $1.30 billion slightly exceeding the $1.28 billion estimate. Vehicle production for the quarter was 5,979 units, below the estimated 7,411, and cash and cash equivalents stood at $4.81 billion, below the $5.29 billion estimate.
In the social media and dating app space, Match Group (MTCH) is looking to reverse a year-long revenue slump by committing $50 million to product development after providing an upbeat forecast. This investment signals a strategic push towards a turnaround for the company. Meanwhile, Opendoor CEO Carrie Wheeler (OPEN) is reportedly leveraging the company's "meme stock moment" to reshape its future, as the real estate technology firm aims to reposition itself.
Semiconductor giant Advanced Micro Devices (AMD) posted mixed second-quarter results. The company's revenue reached $7.69 billion, surpassing the $7.43 billion estimate, driven by strong demand in its data center and AI accelerators. However, its adjusted EPS of $0.48 was slightly below the $0.49 estimate. AMD also reported adjusted operating income of $897 million (vs. est. $902.8 million) and R&D expenses of $1.89 billion (above est. $1.72 billion). The company sees Q3 revenue between $8.4 billion and $9 billion, with the midpoint of $8.7 billion exceeding the $8.321 billion consensus.
Snap Inc. (SNAP), the parent company of Snapchat, reported Q2 sales of $1.34 billion, slightly missing Wall Street's $1.35 billion average estimate. Adjusted EBITDA came in at $41.3 million, below the $48.7 million estimate. Despite the revenue miss, Snap saw its Daily Active Users (DAU) grow to 469 million, exceeding the 468.11 million estimate. For Q3, Snap anticipates revenue between $1.48 billion and $1.51 billion, generally in line with analyst expectations, and adjusted EBITDA between $110 million and $135 million.
Networking hardware provider Arista Networks (ANET) showcased robust performance, with Q2 revenue reaching $2.20 billion, exceeding the $2.11 billion estimate, and adjusted EPS of $0.73, well above the $0.65 estimate. The company's Q3 outlook is also strong, with revenue expected around $2.25 billion (vs. est. $2.13 billion), adjusted gross margin around 64% (vs. est. 61.5%), and adjusted operating margin around 47%.
In other earnings news, Devon Energy (DVN) reported Q2 core EPS of $0.84, slightly below the $0.85 estimate, but significantly beat expectations on Free Cash Flow at $589 million (vs. est. $479.2 million) and production at 848 MBOED (vs. est. 817,287 MBOED). Super Micro Computer (SMCI) reported Q4 net sales of $5.76 billion, below the $6.01 billion estimate, and adjusted EPS of $0.41, below the $0.44 estimate. However, the company provided strong guidance for FY2026 net sales of at least $33.0 billion, significantly above the $30.03 billion estimate, and sees Q1 net sales between $6.0 billion and $7.0 billion.
Lastly, global mining giants BHP (BHP) and Lundin are set to request incentives from Argentina for their copper projects, a move that has other miners concerned about being left out of the program before its cut-off date.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.