Earnings Roundup and Exit Bumble

We had a number of companies report earnings over the last several days. And, unfortunately, some of the reactions were not quite positive.

Let’s start with Bumble Inc. (Nasdaq: BMBL), the parent company of the dating apps Bumble and Badoo.

For the third quarter, Bumble was expected to report revenue of $198.75 million with a loss of $0.01 per share. The company topped sales estimates, posting a 24% increase to $200.5 million. This was driven by a 19% increase in average revenue per user to $22.97.

The dating app operator also forecast fourth quarter and full-year revenue above Wall Street estimates.

But the turbulence we saw came from the fact that the company reported a $0.06 loss per share for the third quarter and Badoo’s revenue declined due to a payment processing outage.

This led to a flurry of analyst downgrades and price target reductions. That fueled the steep drop we saw in shares yesterday that triggered our stop.

Action to Take: Sell your shares of Bumble Inc. (Nasdaq: BMBL) as well as the April $55 calls.

I think this was a wild overreaction. But tech stocks have been hammered on misses. We might wait for things to cool down a bit and circle back here. Shares are now trading at 52-week lows.

We also heard third quarter earnings from GoodRx Holdings (Nasdaq: GDRX) this week. Wall Street was looking for $194.89 million in revenue with earnings of $0.09 per share.

The digital healthcare platform reported a 39% increase in revenue to $195.1 million with earnings of $0.09 per share. Subscription revenue jumped 111% to $16.2 million as the number of subscription plans grew 68%. And other revenue, which includes pharma manufacturing advertising, surged 177% to $23.2 million.

For the fourth quarter, GoodRx provided revenue guidance of $217 million with full-year revenue of $749 million. Both of these are slightly above the consensus.

PGT Innovations (NYSE: PGTI) released third quarter results this week as well. Expectations were for a 28.4% increase in revenue to $297.33 million with earnings of $0.23 per share.

The window and door manufacturer reported a 24% jump in revenue to a record $300 million as gross profits increased 20% and earnings came in at $0.26 per share.

PGT stated that it’s been able to step up production to meet strong demand. The company is continuing to work through its backlog, and the price increases PGT implemented in recent months will be fully realized in the fourth quarter. The company maintained its full-year guidance of $1.15 billion in sales.

Last Friday, DraftKings (Nasdaq: DKNG) reported earnings. Wall Street was expecting third quarter revenue of $231 million with a loss of $1.06 per share.

The online sports gaming and fantasy site posted $213 million in revenue with a loss of $1.35 per share. But it raised full-year guidance to $1.26 billion and forecast 2022 revenue of $1.8 billion.

DraftKings also sees the U.S. sports betting and iGaming market growing from $1.5 billion in 2019 to $18 billion in 2025.

Up next, Rocket Lab (Nasdaq: RKLB) will report on November 15. Expectations are for $4.82 million in revenue with a loss of $0.12 per share. For 2021, forecasts are for $53.94 million in revenue with 2022 revenue surging to $178.25 million.

We’re in a very exciting upswing regarding this launch specialist’s business.

The Mosaic Company (NYSE: MOS) reported that October sales increased 60% to $1.195 billion. And that’s despite the fact that the total volume of fertilizers sold has experienced a steep tapering off.

The fertilizer company listed its average price for phosphates for the fourth quarter as between $55 and $65 per metric ton. It expects to sell roughly 1.85 million metric tons. And Mosaic’s potash prices will continue to increase to $130 per metric ton in the fourth quarter.

We’re up roughly 20% on our shares.

And our shares of Riot Blockchain (Nasdaq: RIOT) rose to their highest level since April this week as the price of Bitcoin surged to new records.

The cryptocurrency miner should report earnings next week, though nothing has been announced. The current consensus is for $64.89 million in revenue as earnings swing from a loss of $0.04 per share a year ago to a gain of $0.25 per share.

Riot’s 2021 revenue is projected to skyrocket more than 1,700% to $218.53 million.

We’re currently up 30% on our shares with our January $32 calls in the money and up more than 60%.

It was a bumpy week for our portfolio. We’ll look to add a new position early next week.

Until then, enjoy your weekend!

Here’s to high returns,

Matt

To view the current Trailblazer Pro portfolio, click here.