Tesla Misses on 3Q Earnings, Revenue Estimates
Claman on Call: FBN’s Liz Claman with an after-hours web exclusive on the markets, the busy day in earnings and Activision Blizzard’s acquisition of King Digital Entertainment.
It's early but the markets are on a roll in November; stocks closed in the green Tuesday. With the Dow back in positive territory for the year, it fell just short of closing above 18,000.
Electric car maker Tesla (NASDAQ:TSLA) didn't get enough juice last quarter as the company missed on both EPS and revenue estimates. Even with the miss, Tesla delivered more than 11,600 vehicles in the third quarter and plans to roll 15- to 17,000 electric cars off the assembly line this quarter. Shares were up around 7% after hours.
Online marketplace Etsy (NASDAQ:ETSY) also fell short on revenue expectations while coming in line with EPS estimates. The handmade crafts site stated it expects marketing expenses to continue to grow faster than its revenue in the fourth quarter. Shares fell more than 5% after hours.
Game developer Zynga (NASDAQ:ZNGA) swung to a profit in the third quarter, posting an 11% increase in revenue and sending the creator of Farmville up around 2% after hours. Zynga also unveiled a $200 million share buyback program. That's where the good news ended, though; the company announced its CFO has resigned and offered a soft outlook for the holiday quarter.
Those pixelated Farmville cows watched with dropped jaws as one of Zynga's competitors was snapped up by a top name in video games. Activision Blizzard (NASDAQ:ATVI) is buying the maker of the addictive mobile game "Candy Crush", King Digital (NYSE:KING), for $5.9 billion.