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What Went Wrong for TSLA, FIT, and PCLN in Earnings Season?




Today’s video takes a look at three companies that reported earnings and have not performed very well as a result.

Stocks have been down lately but things have gone especially poorly for a few choice companies this earnings season. And it is pretty surprising for several since they actually had good reports for the most part. So if you can’t surge when you have a good report, then what gives?

Well for the most part, lackluster guidance was at play and it was the primary reason for the struggles in many stocks lately. In particular though, Tesla (TSLA), Priceline (PCLN), and Fitbit (FIT) were impacted by this trend.

Fitbit was arguably the worst of this recent issue, as the company thoroughly crushed earnings estimates, beating expectations by 175%. FIT also raised their full year guidance, but they slashed current quarter guidance as well. Investors really focused in on that problem and sent the shares sharply lower, though we take a look at the charts and discuss why there might be longer term hope for investors.

As for PCLN, they also beat and came ahead of revenue expectations as well. However, a recent scandal involving the CEO of the company is plaguing shares, while they cut revenue guidance and EBITDA projections for the coming quarter. Add that in to a Zacks Rank #4 (sell) and it becomes a tough situation for this online travel booking stock.

And finally, Tesla was also in the news thanks to their earnings, but this is a company where earnings haven’t mattered at all. TSLA missed estimates again and actually improved their guidance by pushing their date for 500,000 cars produced up to 2018. This is highly ambitious, and many investors aren’t buying the hype. Watch the video for a more in-depth discussion of recent estimates and how this could spell some short-term turbulence for the stock.

Bottom Line

Guidance just wasn’t what investors were expecting for any of these companies, and that’s why we saw the underperformance. Make sure to watch the video for more earnings insights, and tune in next week for more earnings previews!

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TESLA MOTORS (TSLA): Free Stock Analysis Report
 
FITBIT INC (FIT): Free Stock Analysis Report
 
PRICELINE.COM (PCLN): Free Stock Analysis Report
 
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