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Netflix, Chipotle, Snap & T.I. All Beat Q1 Expectations

Mark Vickery

After Tuesday’s market close, we see the first big after-hours earnings reporting session of Q1 2020 — Netflix NFLX, Chipotle CMG, Texas Instruments TXN and Snap SNAP all put out quarterly numbers, with surprisingly sturdy results throughout.

Netflix posted mixed figures on earnings and sales, but blew the doors off expectations for streaming subscriber net adds in the quarter: 15.7 million new subscribers in the quarter easily outperformed the 8.2 million expected. The company has acknowledged home confinement due to “shelter in place” initiatives has boosted their net adds; however, a shutdown in Hollywood content production will delay new Netflix offerings.

Earnings of $1.57 per share missed the Zacks consensus by 4 cents, while revenues came in ahead of expectations to $5.77 billion from the $5.70 billion estimate. Shares spiked 10% immediately upon the news, but have since cooled. This follows 34% share growth year to date. To say Netflix is a beneficiary of the “stay at home economy” is to understate the matter. For more on NFLX's earnings, click here.

Chipotle Mexican Grill outperformed expectations on both top and bottom lines after the closing bell for its Q1 2020 results: $3.08 per share on $1.41 billion in sales surpassed the $12.56 per share and $1.39 billion in revenues in the Zacks consensus. Comps rose 3.3% in the quarter, with a huge boost from its Digital Orders: +81%. This makes Chipotle’s digital ordering business now 26% of the company’s total sales. Shares were up more than 4% on the news.

Texas Instruments posted easy earnings and revenue beats for its Q1 results: earnings of $1.24 per share topped the $1.01 our analysts were expecting (though these figures may not be directly comparable) on $3.33 billion in sales, outperforming the $3.18 billion anticipated. The semiconductor giant expanded next-quarter guidance to account for a wider range of possibilities; even with complications from the coronavirus economy, the top end of the Q2 ranges — $1.04 per share and $3.2 billion — are only marginally off the earlier pace in the Zacks consensus. Texas Instruments was up 1% in after-hours trading.

Finally, Snap Inc. has missed by a penny on its bottom line to -8 cents per share, but far exceeded top-line estimates to $462 million. The Zacks consensus was for $423.7 million, which itself represented a gain of 32% year over year. Daily Active Users outpaced expectations by 5 million in the quarter to 229 million in the quarter, and Average Revenue Per User (ARPU), which analysts had been bracing for disappointment, grew 20% year over year. Shares are up 17% in late trading.

 

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
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