Chegg, Wolfspeed, BlackBerry: After-hours movers
Chegg (CHGG) shares dropped after the close. The education technology company reported third quarter results that were about in line with estimates. In a statement, CEO Dan Rosensweig highlighted the company's efforts to incorporate AI into its offerings.
Wolfspeed (WOLF) shares soared after the tech firm reported fiscal first-quarter earnings that were better than expected, as was its second-quarter guidance.
BlackBerry (BB) shares climbed after the company confirmed CEO John Chen will retire at the end of the week, ending his nearly 10-year tenure. Chen oversaw BlackBerry's pivot from smartphones to cybersecurity and IP software.
Yahoo Finance's Julie Hyman breaks down the stocks that are moving in after-hours trading.
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Video Transcript
JULIE HYMAN: The after-hours. Now, we start with Chegg, the education company, coming out with its earnings and a forecast that perhaps is disappointing some investors here. We see the shares down almost 5% in the after-hours session. Now, revenue fell 4% year over year but came in basically in line with estimates here. Losses also pretty much were adjusted earnings per share pretty much in line with estimates.
The company did come out with a forecast that maybe left it some room to [INAUDIBLE] estimates. Fourth quarter revenue, it says, is going to be $185 million to $187 million. Analysts were looking for $186.4 million, so we're looking for disappointment. Maybe it's there.
I'm looking at the commentary as well. There were some prepared remarks ahead of the conference call from Dan Rosenzweig, who's the CEO and president, who talked about the company dealing with the challenge of AI, this has been a big narrative for Chegg, and basically saying that they are have adapted a lot of AI-powered tools, that they, he says, are seeing success with their users and with students. The shares, though, are still down some 65% year to date.
We got negative news today on the semiconductor front from on semi. Now we have Wolfspeed out with numbers that beat estimates, those shares up some 9% in after-hours trading. As you can, see the shares are down about 60% year to date here.
But if you look at the Wolfspeed numbers, that forecast looks like it is positive here. Adjusted earnings per share from continuing operations positive, $0.56 to $0.70. Analysts have been looking for a loss of $0.68, so that seems to be better than had been predicted. The loss in its fiscal first quarter was also more narrow than had been anticipated, so we're going to keep an eye on that and the ripple effect as well.
And then an update on BlackBerry, the company confirming indeed that John Chen is stepping down as CEO. The shares only up a little bit in after-hours trading, but that's because we got the news reported by Canada's Globe and Mail newspaper before the close of trading, so the shares rose 6.5% at that point in time. You can see here the move upward in the shares when that headline broke.
And it looks like in the interim here Richard Lynch is going to take the helm of the company as interim CEO. They're looking for a permanent CEO as the company undergoes a transformation spinning out its internet of things business and trying to sell its software portfolio.
