Radar Movers: Facebook Erases Gains, Starbucks and Visa Drop After Earnings
Shares of Starbucks (NASDAQ:SBUX) fell more than 2 percent in late afternoon hours. Starbucks reported better-than-expected quarterly earnings, but revenue was a slight disappointment. Revenue increased 13 percent to $3.80 billion from $3.36 billion a year earlier. Wall Street expected revenue of $3.81 billion. Starbucks also expects to earn $2.55 to $2.65 per share in fiscal year 2014, below the consensus of $2.67 per share. “The fourth quarter of fiscal 2013 capped off by far the best year in Starbucks 42-year-history,” said Howard Schultz, chairman, president and chief executive officer of Starbucks. “Our results were driven by disciplined, ongoing efforts to elevate the value and relevance of the Starbucks brand, continued innovation and the success of our efforts to deepen our connection to customers and communities around the world.”
Facebook (NASDAQ:FB) shares surged 10 percent in late afternoon trading, but erased gains as the company explained teens are losing interest. Facebook reported quarterly earnings of 25 cents per share, easily beating estimates calling for 19 cents per share. Revenue jumped 60 percent to $2.02 billion, compared to $1.26 billion a year earlier. Facebook now has 1.19 billion monthly active users, up 18 percent from last year. “For nearly ten years, Facebook has been on a mission to connect the world,” said Mark Zuckerberg, Facebook founder and CEO. “The strong results we achieved this quarter show that we’re prepared for the next phase of our company, as we work to bring the next five billion people online and into the knowledge economy.”
Shares of Metlife (NYSE:MET) dropped more than 3 percent in late afternoon hours. Metlife reported net income of $972 million (84 cents per share) for the third quarter, compared to a loss of $954 million (92 cents per share) a year earlier. However, analysts expected Metlife to earn $1.18 per share. Revenue of $16.9 billion was also below Wall Street’s estimate of $17 billion. “MetLife’s third quarter results reflect continued growth in emerging markets, solid performance in the United States, and disciplined expense management,” said Steven A. Kandarian, chairman, president, and chief executive officer of MetLife. “We are supplementing strong organic growth in emerging markets with acquisitions such as Provida, the largest pension provider in Chile, which closed earlier this month. We continue to shift our business toward lower-risk, protection-oriented products as we focus on providing long-term value for our shareholders.”
Visa (NYSE:V) shares declined 3 percent in late afternoon trading. Visa reported quarterly earnings of $1.85 per share on revenue of $2.97 billon. Earnings were inline with estimates, but analysts expected revenue of $3.02 billion. “Visa delivered strong financial performance during the fourth quarter and full year across our global businesses, a reflection of solid revenue and transaction growth. We continued investing in high growth regions of the world, in products and technology to drive our performance, while maintaining disciplined expense control. We also have been consistent and decisive in returning excess cash to shareholders and maintain this commitment,” said Charlie Scharf, chief executive officer of Visa. Shares of Visa are up more than 30 percent this year.