Check out the companies making headlines in midday trading.
Snap — Shares of Snap soared roughly 24% after better-than-expected second-quarter earnings results. The social media company reported strong growth of users, engagement and ads.
Twitter — Twitter shares gained 3.4% after reporting its fastest revenue growth since 2014. The social media platform reported earnings of 20 cents per share, topping analysts’ estimates of 7 cents per share, according to Refinitiv.
Intel – Shares of the chipmaker fell 6.4% after the company reported cautionary guidance on margins in the current quarter. Intel guided to non-GAAP gross margins of 55% in the third quarter, a notable drop from 59.2% in the second quarter. Intel said that the decreased margin was due to supply constraints as well as costs related to building chips with a new process technology.
American Express – Shares of the payments giant rose about 2% after beating on the top and bottom line of its quarterly results. American Express reported earnings of $2.80 per share on revenue of $10.24 billion. Wall Street expected earnings of $1.66 per share on revenue of $9.58 billion, according to Refinitiv.
Honeywell – Shares of the industrial conglomerate dipped about 2.5% despite the company beating estimates during the second quarter. Honeywell earned $2.02 per share excluding items, which was ahead of the expected $1.94, according to estimates from Refinitiv. Revenue came in at $8.81 billion, also ahead of the expected $8.64 billion. Honeywell also raised its full-year guidance.
Boston Beer – Boston Beer slid roughly 24% after the company cut its 2021 outlook due to expectations of soft sales in its hard seltzer brands. The company earned $4.75 per share during the quarter, which was short of the expected $6.69 per share, according to estimates from Refinitiv. Revenue also missed expectations. Goldman Sachs downgraded the company to neutral from buy.
Skechers — Shares of Skechers gained over 7% after the footwear company reported revenue of $1.66 billion for the most recent quarter, topping analysts’ projections of $1.5 billion. Skechers also issued strong third-quarter and full-year earnings and revenue guidance.
Veoneer – Veoneer stock soared more than 56% after the Swedish automotive technology company said it would be bought by Canadian auto parts maker Magna International for about $3.8 billion. The deal will help Magna in its efforts to enhance its driver assistance technology business.
TAL Education, New Oriental Education and Technology – U.S.-listed Chinese education stocks plunged after reports of a government crackdown on the sector that included bans on foreign investment. TAL Education shares fell more than 66%, while New Oriental Education and Technology shares dropped by more than 58%. Educational training institutions are banned from raising money through stock listings, while foreign capital cannot invest, according to a copy of the Chinese-language document seen and translated by CNBC.
— CNBC’s Tanaya Macheel, Yun Li, Pippa Stevens and Maggie Fitzgerald contributed reporting
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