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Flat Markets Ahead of Big Earnings Afternoon: ABNB, WYNN & More

Market indices today fought back from a soft open this morning, but only managed to get above the zero-level a short time before closing narrowly in the red. The Dow slipped -44 points on the day, -0.13%, while the Nasdaq was -0.63%. The S&P 500 split the difference, -0.45%, while the small-cap Russell 2000 — which has trailed the other major indices over the past month and is back in the red year to date — relatively outperformed, -0.10% for the session.

President Biden is meeting with heads of both parties in the Senate and the House of Representatives to see what can be done about raising the debt ceiling with a deadline fast approaching. The last time this matter had gotten to this level of precariousness was back when President Obama worked out of the Oval Office and Republicans controlled the House — the same dynamic we see today. Back then, the U.S. suffered its first credit downgrade in history due to this political brinksmanship before cooler heads eventually prevailed.

Airbnb ABNB shares have tumbled nearly -10% in late trading following its Q1 earnings report. The “stays and experiences platform” outpaced expectations on both top and bottom lines — earnings of 18 cents per share on $1.82 billion in sales beat the 10 cents per share and $1.79 billion estimates, respectively — but Q2 revenue forecasts came in more tepid than anticipated, especially in an economic climate that’s seeing strength in travel-related companies. Airbnb projects full-year revenues in-line with earlier guidance.

Wynn Resorts WYNN brought in its Q1 earnings report well ahead of analyst estimates this afternoon, swinging to positive earnings of +29 cents per share from a Zacks consensus -18 cents. Revenues of $1.42 billion easily surpassed the $1.26 billion expected, which itself represented growth of over +30% year over year. Adjusted Property EBITDA came in at $430 million, well ahead of the $368 million. The company also announced a 25 cent dividend on WYNN shares, and the stock is trading up after hours.

Communications tech firm Twilio TWLO is not doing nearly as well in today’s after-market, as its Q1 results outperformed expectations on both earnings and sales — 47 cents per share versus 20 expected on $1.01 billion in revenues versus $999.8 million anticipated — were eclipsed by its weaker Q2 revenue guidance. The company today said it expects sales of $980-990 million, clearly beneath the Zacks consensus of $1.04 billion. Shares had plummeted -15% on the release, but have cooled a bit to -12% at this hour.

Electronic Arts EA shares are up nearly +4% in late trading on mixed results for its fiscal Q4 report this afternoon, swinging to negative earnings of -$0.04 per share from an expected +$1.31 (and the year-ago $1.18 per share), while sales of $1.95 billion swept passed the $1.73 billion analysts were looking for. Next quarter’s revenue guidance is lower than the Zacks consensus ahead of the release, but a dividend payment of 19 cents per share has been approved.

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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

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Airbnb, Inc. (ABNB) : Free Stock Analysis Report

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