Dow Jones Futures: Facebook Stock, Electronic Arts, FireEye, iQiyi Earnings Movers

Dow Jones futures edged higher late Tuesday, along with S&P 500 futures and Nasdaq futures, after the major averages rallied in the regular session, trying to stem October’s stock market correction. Facebook (FB), Electronic Arts (EA), FireEye (FEYE), iQiyi (IQ) and Paycom Software (PAYC) were notable companies reporting earnings after the close.


Facebook stock initially wavered late, but moved higher on positive Q4 comments. FireEye stock was a clear winner, while Electronic Arts, iQiyi (IQ) and Paycom were losers late.

Dow Jones Futures Today

Dow Jones futures climbed 0.1% a fraction vs. fair value. S&P 500 futures were up 0.2%. Nasdaq 100 futures rose 0.3%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session. That’s been particularly true in October’s stock market correction, with big swings during normal and extended trading hours.

The Dow Jones, S&P 500 index and Nasdaq composite had another volatile session Tuesday, but closed up 1.6% to 1.8%. But one day does not end a stock market correction. The S&P 500 index and Nasdaq composite have yet to have back-to-back gains in October.

Tuesday is the first day in a new rally attempt. Wait to see if one or more of the major averages can confirm a new uptrend via a follow-through day.

Facebook Earnings

Facebook earnings rose 11% to $1.76 a share. Revenue climbed about 33% to $13.539 billion.

Analysts expected Facebook earnings to fall 8% to $1.47 a share, with revenue rising 33% to $13.781 billion.

Monthly active users were at 2.27 billion at the end of Q3, up 10% vs. a year earlier but below some estimates.

On the Facebook earnings conference call, the social giant forecast that Q4 revenue growth will decelerate by a mid- to high-single-digit number, a little less than its prior prediction for a high-single-digit slowdown. Facebook also sees Q4 expenses and capital spending rising less than it expected in its Q2 earnings call. The company also eased concerns about 2019 costs.

Facebook stock was up and down initially but moved decisively higher after the Q4 guidance. Shares rallied 3.1% late.

Facebook stock plunged after the Q2 earnings report, hitting an 18-month low of 139.03 intraday on Monday. Shares did rebound to close up 2.9% to 146.22 in the stock market today.

Electronic Arts Earnings

Electronic Arts earnings rose 34% to 83 cents a share for its fiscal Q2, with revenue up 3% to $1.22 billion.

Wall Street forecast Electronic Arts earnings per share of 58 cents, down 8% vs. a year earlier, with flat revenue of $1.183 billion.

But Electronic Arts guided net bookings in the holiday Q3 at $1.73 billion, well below some estimates.

EA shares fell 5.5% late. Electronic Arts stock closed up 3.6% Tuesday. But shares have sold off sharply since peaking in July, tumbling to an 18-month low on Monday.

iQiyi Earnings

Often called the “Netflix of China,” iQiyi actually licenses Netflix (NFLX) content in China. It is majority-owned by Baidu (BIDU).

IQiyi lost 63 cents a share, missing views by 25 cents. Revenue rose 48% to $1 billion, in line. IQiyi sees Q4 net revenue of 6.48 billion to 6.75 billion yuan, or $943.5 million to $982.8 million. That’s below estimates.

iQiyi stock tumbled 13% late. During Tuesday’s session, shares rose 3.9% to 22.20 after hitting a five-month low intraday.

The iQiyi IPO launched in late March at 18 a share, tumbling to 15.55 in its debut. But it soon surged higher, running up to 46.23 on June 19. Since then shares have steadily fallen.

Its parent, Chinese search giant Baidu, reported a smaller-than-expected earnings drop and topped revenue views. Baidu stock edged lower.

Paycom Earnings

Paycom earnings soared 79% to 52 cents a share. Revenue leapt nearly 32% to $133.29 million.

Analysts expected Paycom earnings to advance 76% to 51 cents a share, with revenue rising 29% to $130.2 million.

Paycom sees Q4 revenue at $142.5 million to $144.5 million. Analysts expected $142.4 million. But Paycom saw adjusted earnings before interest, taxes, depreciation and amortization at a midpoint of $50.5 million, below views for $51.4 million.

Paycom stock slid 7.6% late. Shares have sold off since mid-September, falling through the 50-day line early this month. Paycom stock has been trying to consolidate above its 200-day line recently, but rebounded 4.7% Tuesday.

FireEye Earnings

FireEye earnings came in at 6 cents a share adjusted, reversing a year-earlier 4-cent loss. Revenue rose 7% to $211.65 million.

Analysts expected FireEye earnings of 2 cents a share, with revenue at $208.5 million.

FireEye sees Q4 EPS at 5 cents, a penny above views.

FireEye stock rose 6.2% late. Shares tried to break out from a cup-with-handle base with a 17.94 buy point on Oct. 17, but failed to close above that level. On Monday, FireEye stock fell below its 50-day and 200-day lines, sinking enough to invalidate the entry point. Shares rallied 2.7% to 16.85 Tuesday, reclaiming both averages.


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Originally posted 2019-09-19 23:23:57.


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