Chewy plunges, private payrolls and more: Wednesday's 5 things to know
The ADP report on private sector hiring returns Wednesday from hiatus having undergone a change in methodology to provide a more accurate report
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Here are the key events taking place on Wednesday that could impact trading.
SNAP: Shares fell 6% in after-hours trading after the company reportedly plans to lay off 20% of its employees.
People familiar with the matter tell The Verge the furloughs had been planned for several weeks and will begin Wednesday.
Developers working on mini apps and games will reported be hard hit, as well Zenly, a social app that Snap acquitted in 2017.
SNAP TO LAY OFF 20% OF ITS WORKFORCE: REPORT
This illustration picture shows the Snapchat logo in front of the silhouette of a hand holding a smartphone. (Photo via Getty Images / Getty Images)
The company announced second quarter revenue grew 13% in the second quarter and a net loss that widened to $422.1 million from $151.7 million.
CHEWY: Shares of the ecommerce pet supply company plunged 11% in after-hours trading after the company missed the Wall Street estimate on sales but beat on profit.
The company cut its fiscal 2022 net sales guidance to $9.9 billion — $10.0 billion, reflecting 11% to 12% year-over-year growth. The previous guidance was for $10.2 billion — $10.4 billion, reflecting 15% to 17% year-over-year growth.
Chewy shares fell after the latest earnings report. (istock / iStock)
Net sales improved 12.8% to $2.43 billion. Key drivers were a 14.4% increase in net sales per active customers and a 2.1% increase in active customers.
Net income for the three months ended July 31 was $22.3 million, compared to a year earlier net loss of $16.7 million.
Diluted net income per share was 5 cents. Analysts expected a loss of 11 cents.
HP Inc.: Shares were 6% lower in extended trading. The maker of personal computers and printers missed Wall Street revenue estimates and matched profit expectations.
Fiscal third quarter net revenue fell 4.1% to $14.7 billion. The analyst estimate was $15.7 billion.
Photo of HP products on display (iStock / iStock)
Net earning were $1.1 billion, up 1% from a year ago.
Non-GAAP diluted earnings per share was $1.04, matching the analyst estimate.
For the fiscal year 2022, HP estimates GAAP diluted net EPS to be in the range of $3.46 to $3.56, down from the previous forecast of $3.79 to $3.93.
JOB OPENINGS UNEXPECTEDLY CLIMB IN JULY TO 11.2M, HOVERING NEAR RECORD
PRIVATE HIRING: The payroll processing firm ADP releases its National Employment report for August. Economists anticipate a gain of 288,000 private-sector jobs.
This will be the first report since May, when ADP underwent changes in its methodology to try and provide a more accurate portrayal of the labor market and better forecast the government’s monthly employment report.
MIDWEST ACTIVITY: The Institute for Supply Management is out with its Chicago Purchasing Managers’ index for August.
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This closely watched gauge of Midwest business activity is anticipated to fall for the third month in a row to 52.0, down slightly from a weaker-than-expected reading of 52.1 in July and the lowest since August 2020.
Keep in mind that a reading of 50 is the dividing line between expansion and contraction.