A late rally allowed the major averages to finish Thursday’s session with a mixed performance. Investors showed significant uncertainty after the sharp declines that have taken place in recent weeks, leading to a volatile day.
While macro concerns drove overall trading, earnings news prompted major moves by individual stocks. That included Dutch Bros (NYSE:BROS), which lost more than a quarter of its value following the release of its quarterly report. The stock also briefly dropped below its IPO price.
Atento (ATTO) was another victim of disappointing financial figures. The stock retreated almost 40% to set a new 52-week low.
Meanwhile, Squarespace (SQSP) moved in the opposite direction on earnings news, rising almost 50% on strong revenue and an upbeat forecast. At the same time, H&R Block (HRB) added to its recent earnings-inspired rally, allowing the stock to set a new 52-week high.
Squarespace (SQSP) reported Q1 revenue that topped expectations and raised its full-year forecast. Boosted by the quarterly update, shares of the website building and hosting company surged 48%.
The firm’s bottom line deteriorated in Q1, with a net loss of nearly $93M. SQSP also reported an EBITDA loss of $2.9M, compared to a profit of $11.1M last year.
However, SQSP’s revenue figure jumped nearly 16% to $208M. Meanwhile, for the full year, the firm targeted a figure between $867M-$879M, suggesting a growth rate of 11%-12%.
Thanks to the earnings news, SQSP soared $7 to close at $21.44. This allowed the stock to come off a 52-week low of $14.43 set during the previous day. Even with the massive rebound, the stock has still lost about 15% over the past month.
High costs and a weak forecast prompted selling in Dutch Bros (BROS), which fell 27% following the release of its quarterly report. The one-time high-flier also reached its lowest level since coming public, briefly breaking below its IPO price.
The coffee store operator reported adjusted EBITDA that slumped below $10M in Q1, compared to a level of nearly $19M in the same period last year. This came despite revenue that surged 54%, as the company faced costs related to expansion and higher minimum wages in certain markets.
Looking ahead, BROS predicted full-year revenue of $700M to $715M, compared to analysts’ consensus of $717M.
Hurt by the quarterly results, BROS plunged to an intraday low of $20.05 early in the session — its lowest mark since coming public. The stock cut its losses later in the day but still closed at $25.11. That represented a decline of $9.11 on the day.
BROS, which came public last September in an IPO priced at $23 a share, rallied to a 52-week high of $81.40 over the next month and a half.
Shares have suffered selling pressure since late March, losing about 52% of their value over the past month.
Notable New High
H&R Block (HRB) posted another gain on Thursday, adding to an earnings-inspired advance that took place the previous day. The stock rose 7% to set a fresh high.
Shares of the tax preparation firm surged almost 20% on Wednesday after the company topped expectations with its latest earnings figures. The firm also raised its forecast.
On Thursday, HRB climbed $2.04 to close at $30.45. During the session, the stock reached an intraday 52-week high of $30.48.
The earnings jump over the last two sessions has more than reversed a swoon that took place in late April and early May. Shares reached a 52-week low of $21.08 in late January. HRB has climbed 44% since that point.
Notable New Low
A disappointing quarterly report sent Atento (ATTO) spiraling, as the company struggled in the aftermath of a cyberattack and with absenteeism related to Omicron. The stock dropped 36% to reach a new low.
The provider of customer relationship management services reported a net loss that swelled to nearly $71M compared to a loss of $20M last year. EBITDA dropped 10% to $35M. Meanwhile, the firm’s revenue figure slipped about 2% to $357M.
ATTO finished Thursday’s trading at $14.93, a decline of $8.42 on the day. Shares also reached an intraday 52-week low of $14.51.
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