Wall Street fell on Monday as investors weighed uncertainty surrounding the conflicts in Ukraine and the Gaza Strip. After the closing bell, shares of Netflix and Chipotle rose on stronger-than-expected earnings results, while Yahoo’s stock climbed following its announcement to buy mobile analytics startup Flurry.
The Dow Jones Industrial Average dropped 48.45 points or 0.28 percent, to close at 17,051.73. The S&P 500 fell 4.59 points or 0.23 percent, to end at 1,973.63. The Nasdaq Composite was down 7.44 points or 0.17 percent, to finish at 4,424.70.
Netflix Shares Rise On Second-Quarter Earnings
Netflix, Inc. (NASDAQ:NFLX) reported fiscal second-quarter 2014 earnings of $1.15 per share on revenue of $1.34 billion, compared with a profit of 49 cents per share on sales of $29.5 million in the year-ago period.
Wall Street had expected Netflix to report EPS of $1.16 on revenue of $1.34 billion, according to analysts polled by Reuters.
Although Netflix missed Street estimates by a penny, sales were in line with forecasts. The big question analysts and investors were looking for was whether Netflix would top 50 million streaming subscribers for the first time.
“Fifteen years after launching our subscription service, we have over fifty million members enjoying Netflix in over 40 countries. We have over 50 million members in over 40 countries,” Netflix said in its earnings announcement.
The company had forecasted three months ago it would add 1.46 million customers to end the quarter with 49.81 million.
In addition, Netflix raised subscription prices by $1 a month in May, but added the increase had “minimal impact on membership growth.”
The company’s U.S. member base grew to more than 36 million, and for the third-quarter, Netflix expects nearly 1.3 million net additions in the U.S., on par with the same quarter last year when it premiered Orange is the New Black Season 1.
In after-hours trading Monday, shares of Netflix climbed 0.62 percent to $454.73 following the company’s earnings results.
Chipotle Shares Jump After Quarterly Results
Also after the bell Monday, Chipotle Mexican Grill, Inc. (NYSE:CMG) shares soared in extended-hours trading after the restaurant chain reported earnings of $3.50 a share as revenue increased to $1.05 billion.
Analysts were expecting Chipotle to post EPS of $3.09 on $990 million in sales, according to analysts polled by Reuters.
“We’re pleased that we continued to drive excellent results in the second quarter, including one of our strongest sales comps as a public company. These extraordinary results are made possible by our special food culture, innovative people culture, and strong business model that are not only creating significant shareholder value, but also helping us realize our vision to change the way people think about and eat fast food,” Steve Ells, Founder, Chairman and co-CEO of Chipotle, said in the company’s earnings announcement.
Chipotle opened 45 new restaurants in the second-quarter compared to the same period a year earlier, as comparable restaurant sales increased 17.3 percent. The company issued EPS of $2.82 a share on sales of $817 million a year ago.
For fiscal 2014, the company expects 180-195 new restaurant openings and to increase comparable restaurant sales in the “mid-teens.”
Chipotle's stock jumped 9.93 percent to $648.50 in after-hours trading.
Yahoo to Acquire Mobile Analytics Startup Flurry
“By joining Yahoo, Flurry will have resources to speed up the delivery of platforms that help developers build better apps, reach the right users, and explore new revenue opportunities. Together, the companies can make mobile experiences better through products that are more personalized and more inspiring,” Yahoo said in a press release.
The Internet company said Flurry provides solutions to help developers and marketers more easily reach their consumers on mobile devices.
“Analytics are critical for all mobile developers to understand and optimize their applications. The joined offerings of Yahoo and Flurry will enable more effective mobile advertising solutions for brands seeking to reach their audiences and gain unique insights across desktop and mobile, and users will benefit from more personalized app experiences,” Yahoo said.
Last week, Yahoo disappointed investors after it reported a fiscal second-quarter profit of 37 cents a share on sales of $1.04 billion, missing Street expectations by a penny and revenue forecasts for $1.08 billion, according to Reuters.
The company said it expects current-quarter revenue of between $1.02 billion and $1.06 billion.
Shares of Yahoo edged down 0.03 percent to $33.27 following the Flurry announcement.
Apple Shares Rise Ahead Of Tuesday’s Earnings Announcement
Apple Inc. (NASDAQ:AAPL) stock edged up 0.24 percent to $94.16 ahead of the company's highly anticipated quarterly results and its forecast for the September quarter. The iPhone maker on Tuesday is expected to report earnings per share of $1.23 in the third-quarter of fiscal year 2014 on revenue of $37.93 billion, compared with earnings of $1.05 per share on revenue of $35.32 billion in the year-ago period.
“Apple is always very good at managing the expectations of the Street, and then they come in and just below the projections and the expectations out of the water,” Keith Bliss, senior vice president and director of sales & marketing at Cuttone & Co., Inc. told IBTimes. “I expect to see the same thing from them this week.”
In the company’s second-quarter earnings announcement in April, the tech giant said it sold 43.7 million iPhones and 4.1 million Macs, topping expectations for 38.45 million iPhones and 4.08 million Macs.
Apple announced a 7-for-1 stock split in April and the new split-adjusted trade took place on June 9.