Chipotle, Microsoft, Alphabet and more
Signage is displayed outside a Chipotle Mexican Grill Inc. restaurant in San Francisco, California, U.S., Monday, July 20, 2020. Chipotle is expected to release earnings numbers July 22.
David Paul Morris | Bloomberg | Getty Images
Find out which companies are making headlines in the midday business.
Chipotle Mexican Grill– Shares of Chipotle jumped more than 16% after the restaurant chain announced its quarterly results Tuesday after the bell. Earnings improved mainly due to price increases to offset inflation, and the company said another increase is coming in August. UBS on Wednesday reiterated Chipotle as a buy after the results.
Alphabet – Google’s parent company jumped 6% after posting strong year-over-year search revenue growth in the last quarter. Despite failing on the top and bottom lines, the results were better than expected.
Microsoft — The Windows and Xbox maker climbed more than 4% after posting an optimistic revenue forecast for the coming year. However, Microsoft released quarterly results that fell short of analysts’ expectations for both earnings and results. Microsoft posted the slowest revenue growth since 2020, at 12% year-over-year, in the second quarter.
Shopify — Shopify gained 6% even though the e-commerce platform posted disappointing results and released weak forecasts. He said inflation and rising interest rates will hurt consumer spending, reiterating what he said on Tuesday when he announced layoffs.
Enphase Energy – Solar equipment inventory soared 18% after posting strong results in the last quarter. Enphase said strong growth in Europe amid soaring natural gas prices helped results.
PayPal – Shares of PayPal rose 11% following a Wall Street Journal report that activist investor Elliott Management took a stake in the company.
Teva Pharmaceutical – Shares of the Israel-based pharmaceutical company soared nearly 25% after reaching a tentative settlement to pay more than $4 billion for its alleged role in the opioid crisis.
Spotify – Shares rose 14% after the music streaming service reported a 14% increase in premium subscribers in its latest earnings report. Spotify reported a worse-than-expected quarterly loss but beat analysts’ revenue estimates.
Garmin – Shares of the electronics company fell more than 7% after second-quarter sales fell to $1.24 billion. Analysts polled by Refinitiv had expected $1.34 billion. The company cited a strong dollar and supply chain issues as reasons for the weakness. Garmin’s adjusted earnings per share came in at $1.44, 4 cents better than estimates.
Hilton – Hotel inventory grew nearly 5% after beating estimates on the high and low of the second quarter. Hilton reported $1.29 in adjusted earnings per share on $2.24 billion in revenue. Analysts polled by Refinitiv had expected $1.04 in earnings per share on $2.08 billion in revenue. Hilton said its revenue per available room was 54% ahead of the same quarter last year. The hotel chain also raised its profit forecast for the full year.
– CNBC’s Tanaya Macheel, Jesse Pound, Sarah Min, Carmen Reinicke and Yun Li contributed reporting.