After the market closed, several companies grabbed attention with notable movements in their stock prices. For starters, Howard Hughes Holdings experienced a roughly 5% dip. This came after Bill Ackman of Pershing Square sweetened his takeover bid for the real estate firm, aiming to mold it into a contemporary version of Berkshire Hathaway. On Tuesday, Ackman proposed acquiring 10 million newly issued shares at $90 each, which is an upgrade from the prior offer of $85 made back in January.
Meanwhile, Bumble took a hit, with its stock tumbling almost 13%. This came on the heels of first-quarter guidance that didn’t quite hit the mark. The online dating giant revealed expectations for adjusted EBITDA ranging between $60 million and $63 million, alongside anticipated revenue between $242 million and $248 million. However, FactSet’s analysts had hopes set higher, predicting adjusted EBITDA and revenue of $68.8 million and $256.9 million, respectively. Despite this, Bumble’s performance in the fourth quarter still managed to outpace Wall Street’s expectations.
Turning to Cadence Design, the company saw its shares decline by around 5%. Even though its fourth-quarter earnings and revenue surpassed analysts’ forecasts from LSEG, the outlook for the entire year came in a bit lower than predicted. Cadence projects earnings per share, excluding certain items, to fall between $6.65 and $6.75, while analysts anticipated $6.83 per share. Their revenue forecast—between $5.14 billion and $5.22 billion—also narrowly missed the consensus estimate of $5.25 billion. However, the CEO highlighted a strong performance with record bookings and backlog expected in 2024.
CoStar Group’s shares dropped approximately 6% due to unremarkable guidance, despite blowing past expectations in its previous quarter’s adjusted EBITDA and revenue. The real estate firm predicts its first-quarter adjusted EBITDA to land somewhere between $25 million and $35 million, a far cry from the $79.5 million anticipated by FactSet. Revenue expectations between $711 million and $716 million also fell short of the $726.4 million mark set by analysts.
Despite positive results, Arista Networks saw its stock dip by 4%. The data center company reported impressive adjusted earnings of 65 cents per share on $1.93 billion in revenue, outmatching LSEG analysts’ estimates of 57 cents per share and $1.90 billion in revenue, excluding items.
Lastly, Toll Brothers faced a 5% drop in shares following its first-quarter results that didn’t quite meet expectations. The homebuilder reported revenue of $1.86 billion, falling short of the anticipated $1.91 billion by FactSet analysts. Moreover, earnings per share came in at $1.75, beneath the consensus forecast of $2.04.
