Radian Group (NYSE: RDN) reported second quarter earnings on Friday, showing mostly positive results. The company's revenue of $364.44 million was a year-to-year decline of 7.7%, but beat Wall Street expectations by $38.24 million. The company's earnings per share of -0.36, however, may not be comparable to consensus estimates of $0.28. "We continue to be encouraged by the impact of the programs put in place to help ease the burden of the crisis on homeowners, including mortgage forbearance programs and loss mitigation workout options. We are also pleased with the rebound in the housing market, which helped us to write record volume of new primary mortgage insurance business of $25.5 billion dollars in the second quarter," CEO Rick Thornberry stated in a release. The company noted that the full financial impact of the coronavirus pandemic will depend of the depth and duration of the economic recession. Radian did not offer further guidance at this time.
Canada announced on Friday that it will impose tariffs on $2.7 billion worth of U.S. goods, in response to U.S. President Donald Trump's decision to reinstitute aluminum tariffs on the country's northern neighbor. "Canada will respond swiftly and strongly," Canadian Deputy Prime Minister Chrystia Freeland stated during a press briefing, quoted by CNBC. "We will impose dollar-for-dollar countermeasures in a balanced and perfectly reciprocal retaliation. We will not escalate and we will not back down." Trump stated on Thursday that he had signed a proclamation reimposing 10% tariffs on aluminum imports from Canada that had been lifted in 2019, stating that Canada was disadvantaging American workers.
Facebook (NASDAQ: FB) and Microsoft (NASDAQ: MSFT) have called out Apple (NASDAQ: AAPL) for restrictive App Stores policies, stating that they prevent them from launching gaming services on iPhones and other Apple devices. Microsoft earlier announced that it will be launching its xCloud gaming service as part of its subscription service called Xbox Game Pass Ultimate on September 15. However, the app will only be available on Google's (NASDAQ: GOOGL) Android mobile operating system. "Unfortunately, we do not have a path to bring our vision of cloud gaming with Xbox Game Pass Ultimate to gamers on iOS via the Apple App Store," A Microsoft spokesperson stated, quoted by CNBC. "Apple stands alone as the only general purpose platform to deny consumers from cloud gaming and game subscription services like Xbox Game Pass. And it consistently treats gaming apps differently, applying more lenient rules to non-gaming apps even when they include interactive content." Microsoft added that it is determined to bring cloud gaming to the iOS platform. Facebook also launched its an iOS version of its gaming app on Friday, however stating that it was forced remove gameplay functions on the app to get it approved.
Pfizer (NYSE: PFE) announced on Friday that it signed a multiyear agreement to produce Gilead Sciences' (NASDAQ: GILD) remdesivir, the only drug currently authorized to treat severe coronavirus patients. Gilead previously announced that the biotech is expecting to make more than 2 million course of the drug by the end of the year to meet demand. The company is also in agreement with the United States to give most of its supply to the nation through September. Pfizer stated that it will provide contract manufacturing of the drug through its McPherson, Kansas location. The company did not disclose if the drug will only supply the U.S. market.
U.S. District Judge Analisa Torres granted the U.S. government's requests to overturn the Paramount Consent Decrees on Friday, positively affecting pandemic-impacted theater stocks: AMC Entertainment (NYSE: AMC), Cinemark Holdings (NYSE: CNK), IMAX (NYSE: IMAX), and Marcus (NYSE: MCS). The Paramount Consent Decrees are a 1948 set of rulings that prohibited movie studios from owning the exhibition side of the business, as well as other licensing laws. "Given this changing marketplace, the Court finds that it is unlikely that the remaining Defendants would collude to once again limit their film distribution to a select group of theaters in the absence of the Decrees and, finds, therefore, that termination is in the public interest," Judge Analisa Torres writes. Major studios this may effect: Disney (NYSE: DIS), ViacomCBS (NASDAQ: VIAC), Universal (NASDAQ: CMCSA), Warner Bros (NYSE: T), Sony (NYSE: SNE), Lions Gate Entertainment (NYSE: LGF.A), Eros STX (NYSE: EROS), MGM Holdings (OTC: MGMBA).
DISH Network Corporation (NASDAQ: DISH) reported second quarter earnings that topped Wall Street expectations on Friday. The company's revenue of $3.19 billion was a year-to-year decline of 0.6%, but beat estimates by $90 million. DISH's GAAP earnings per share of $0.78 also beat by $0.19. The company only lost 96,000 Pay-TV customers during the quarter, dramatically beatings the predicted loss of 267,000. Sling also loss less subscribers than expected at 56,000, and DISH added 268,000 new subscribers, which was above expectations. The comapny ended the quarter with 11.27 million Pay-TV subscribers, including 9.02 DISH and 2.25 million Sling users. The company did not provide further guidance at this time.
Yelp (NYSE: YELP) reported second quarter earnings that beat WAllStreet expectations on Thursday. The company's revenue of $169.03 million was a year-to-year decline of 31.6%, but beat estimates by $16.43 million. Yelp's GAAP earnings per share of -$0.33 also beat by $0.20. The company's ad revenue fell 32% to $162 million, while transactions revenue rose 26% to $4 million due to increased takeout/delivery orders. Other services fell 53% to $3 million, which was mainly due to $5 million in customer relief during the pandemic. The company highlighted recent trends: June saw improved performance, leading revenues to just be down 25%. Yelp's traffic begun to plateau in July, due to coronavirus outbreaks in many areas. The company did not provide further guidance at this time.
Motorola Solutions (NYSE: MSI) reported second quarter earnings that mostly topped Wall Street expectations on Thursday. The company's revenue of $1.62 billion was a year-to-year decline of 12.9%, but beat estimates by $50 million. Motorola's Non-GAAP earnings per share of $1.39 also beat by $0.17, but GAAP earnings per share of $0.78 missed by $0.16. The company noted that sales declined in both North America and International markets, while its software and services segment grew 5%. During the quarter, the company closed the acquisition of IndigoVision and is now perusing a takeover of Pelco Inc. For its Full Year 2020 outlook, Motorola expects revenue to decline by 7%, non-GAAP earnings per share to be between $7.40-$7.52, and an effective tax rate of 21%-22%.
Groupon (NASDAQ: GRPN) reported second quarter earnings that topped Wall Street expectations on Thursday. The company's revenue of $395.65 million was a year-to-year decline of 25.7%, but beat estimates by $212.38 million. Groupon's Non-GAAP earnings per share of -$0.93 and GAAP earnings per share of -$2.53 also beat by $1.71 and $1.44, respectively. The company noted this its saw better-than-expected gross profit performance during the quarter, which stabilized its balance sheet."These positive trends coupled with the tough but necessary cost actions we took during the first half of the year allowed us to return to positive Adjusted EBITDA on a quicker timeline than we expected and deliver more than $70 million in free cash flow," CFO Melissa Thomas stated in a release. Moving forward, the company stated that it is launching a second phase of its restructuring plan in August, including more workforce reductions. For 2020, its forecasts about $140 million in savings, and 2021 about $200 million in savings. Once fully implemented, the plan should provide about $225 million in annualized fixed savings.
Flower Foods (NYSE: FLO) reported second quarter earnings that mostly exceeded Wall Street expectations on Thursday. The company's revenue of $1.03 billion was a year-to-year increase of 5.6% and beat estimates by $10 million. The company's Non-GAAP earnings per share of $0.33 also beat by $0.02, but GAAP earnings per share of $0.27 missed by $0.02." As part of our updated strategic priorities, we are shifting our focus to value-added, branded retail products that we project will drive the top line and improve margins. We also expect our optimized portfolio to drive share gains by targeting growth segments with innovative products," CEO Ryals McMullian stated in a release. The snack foods brand revised its annual long-term growth targets: Sales 1.%-2%; EBITDA 4%-6%; earnings per share 7%-9%. The company also noted that is plans to allocate strong free cash flow to acquisitions, share repurchases, and dividends.
Dropbox (NASDAQ: DBX) reported second quarter earnings that mostly beat Wall Street expectations on Thursday. The company's revenue of $467.4 million was a year-to-year increase of 16.4% and beat estimates by $1.99 million. Dropbox's Non-GAAP earnings per share of $0.22 also beat by $0.05, but GAAP earnings per share of -$0.04 missed by $0.03. Dropbox's paying users ended the quarter at 15 million, up from last year's second quarter at 13.6 million. The ARPU was also up at $126.88. “Over the past quarter, we introduced a number of products to help facilitate distributed work, addressing both team and personal use cases. With solid revenue growth, robust margin expansion, and continued GAAP profitability, we remain confident in the resiliency of our business," CEO Drew Houston stated in a release. Dropbox stated that CFO Ajay Vashee will be stepping down effective September 15. The company's currency CAO Tim Regan will fill the role.
CarGurus (NASDAQ: CARG) reported second quarter earnings that topped Wall Street expectations on Thursday. The company's revenue of $94.7 million was a year-to-year decrease of 34.7%, but beat estimates by $8.15 million. CARG's Non-GAAP earnings per share of $0.19 and GAAP earnings per share of $0.06 also beat by $0.18 and $0.12, respectively. The company reported lower marketplace subscription revenue due to operations shutdown in Germany, Italy, and Spain in part of its cost-saving efforts in response to the pandemic. The company also reduces its workforce by roughly 13%, decreased advertising spending, and stopped any new international expansion efforts in the online used car industry. For the third quarter, CarGurus sees total revenue to be between $132 million-$135 million; Non-GAAP operating income in the range of $29 million-$31 million; Non-GAAP earnings per share between $021-$0.23. For its Full Year 2020: Total revenue between $518 million-$524 million; Non-GAAP operating income in the range of $89 million-$93 million; and Non-GAAP earnings per share between $0.66-$0.69.
AMC Entertainment (NYSE: AMC) reported second quarter earnings on after market close on Thursday, producing mixed results. The company's revenue of $18.9 million was a year-to-year decline of 98.7%, but beat Wall Street expectations by $10.43 million. The company's Non-GAAP earnings per share of -$5.44 and GAAP earnings per share of -$5.38, however, missed by $1.14 and $1.15, respectively. "It should be no surprise to anyone that with our operations shut the world over, and almost no revenues coming in the door, this was the most challenging quarter in the 100-year history of AMC, CEO Adam Aron stated in a release. "That is why the progress the entire AMC team made since the second quarter began is all the more important and impressive in working to achieve three key priorities: to dramatically reduce operating and capital expenditures, to strengthen our liquidity positive and to set plans in motions for the successful reopening of our theaters as soon as it would be wise to do so." The company has reopened over 130 international theaters as of the end of July. AMC did not offer further guidance at this time.
Zillow Group (NASDAQ: Z) reported second quarter earnings after market close on Friday, topping Wall Street expectations. The company's revenue of $768.35 million was a year-to-year increase of $28.2% and beat estimates by $153.16 million. Zillow's Non-GAAP earnings per share of -$0.17 and GAAP earnings per share of -$0.38 also beat by $0.38 and $0.43, respectively. Revenue by segment: Homes up 82% at $454.3 million; IMT down 13% at $280.3 million; Mortgages up 25% at $33.8 million. The results were "even better than we had hoped, and firm up our belief that powerful tailwinds in both real estate and technology are rapidly converging, with Zillow at the nexus," CEO Rich Barton stated in a release. For the third quarter, the company is guiding revenue s of $543 million-$581 million and EBITDA of $59 million-$82 million.
Ventas (NYSE: VTR) reported second quarter earnings before opening bell on Friday, producing mixed results. The company's revenue of $943.2 million was a year-to-year decline of 0.8% and missed Wall Street expectations by $6.12 million. The company's FFO of $0.77, however, beat by $0.03. “Our second quarter results demonstrate the significant benefit of Ventas’s diversified portfolio. We achieved strong performance in our Office and Triple-Net Lease segments, which partially offset the unprecedented impact of the COVID-19 pandemic on our senior housing operating portfolio,” CEO Debra Cafaro stated in a release. “Healthcare real estate continues to offer compelling, demographically driven growth potential, and Ventas is well positioned to benefit from these powerful tailwinds. However, the near-term clinical, financial, operational and economic environment remains dynamic and highly uncertain." The company did not offer further guidance at this time.