Toll Brothers, Cadence Design, Arista Networks, Bumble, Howard Hughes Holdings, and CoStar Group experienced significant stock fluctuations despite posting robust earnings reports. On [insert date], these companies saw their shares drop in after-hours trading as investors reacted to earnings announcements and future guidance.
Toll Brothers' shares fell approximately 5% following the release of their first-quarter results. The homebuilder posted revenue of $1.86 billion, falling short of analysts' expectations of $1.91 billion. Despite delivering strong earnings, the company could not meet market projections, leading to the decline.
Cadence Design Systems also witnessed a 5% drop in its share value, even though its quarterly earnings and revenue surpassed Wall Street's expectations. However, its revenue forecast of between $5.14 billion and $5.22 billion fell slightly below the consensus estimate of $5.25 billion. Analysts polled by FactSet anticipated adjusted EBITDA and revenue of $68.8 million and $256.9 million, respectively.
Arista Networks' shares decreased by 4% despite reporting fourth-quarter earnings of 65 cents per share on $1.93 billion in revenue, exceeding analyst expectations of 57 cents per share on $1.90 billion in revenue. The company's strong performance was overshadowed by investor concerns regarding future growth prospects.
Bumble faced a significant 13% plunge in its stock price after providing disappointing first-quarter guidance. Although its fourth-quarter earnings and revenue exceeded Wall Street's expectations, the company's forecast for adjusted EBITDA between $60 million and $63 million and revenue between $242 million and $248 million did not meet market anticipations. Analysts had expected adjusted EBITDA and revenue of $68.8 million and $256.9 million, respectively.
Howard Hughes Holdings experienced a 5% slide in its shares after Pershing Square's Bill Ackman increased his takeover offer for the real estate company. This move prompted investors to reassess the company's valuation amidst the ongoing acquisition talks.
CoStar Group's shares fell about 6% as the company delivered lackluster guidance for the coming quarter. Despite surpassing expectations for its previous quarter's adjusted EBITDA and revenue, CoStar's projection for first-quarter adjusted EBITDA between $25 million and $35 million failed to impress investors.