SPECIAL REPORTThe 5 Best Stocks to Buy for 2024
SFT stock is slipping alongside mixed Q4 results
ByWilliam White, InvestorPlace WriterMar 29, 2023, 9:26 am EST
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- Shift Technologies (SFT) stock is sliding alongside its earnings report.
- The company’s EPS came in above estimates.
- However, revenue was below Wall Street’s expectations.
Shift Technologies(NASDAQ:SFT) stock is taking a beating on Wednesday after releasing its earnings report for the fourth quarter of 2022.
The latest earnings report includes mixed results, with earnings per share of -$2.56 and revenue of $65.57 million. To put those in perspective, Wall Street was expecting EPS of -$4.76 and revenue of $75.33 million.
Jeff Clementz, CEO of Shift Technologies, said the following in the earnings report:
“2022 was a year of significant change for Shift. Given market dynamics of the auto industry and capital markets, we adjusted our strategy to prioritize balance sheet health, reduce cash burn, and accelerate our path to profitability.”
What to Expect From SFT Stock
The latest earnings report also includes guidance for the coming quarter. This has Shift Technologies expecting revenue for the first quarter of 2023 to range from $56 million to $58 million. For the record, Wall Street is expecting Q1 2023 revenue to come in at $105.37 million.
While the stock is down today, it doesn’t come with heavy trading. Only around 36,000 shares have changed hands as of this writing, as compared to its daily average of 451,000 shares. That’s somewhat surprising, considering heavy trading typically follows earnings reports.
SFT stock is down 13.7% as of Wednesday morning.
Investors will want to stick around for more of the most recent stock market news!
We’ve got everything traders need to know about on Wednesday! That includes the latest news that has shares of Draganfly (NASDAQ:DPRO), LogicMark (NASDAQ:LGMK), and BiomX (NYSEMKT:PHGE) stock on the move today. You can catch up on all of these matters at the links below!
More Wednesday Stock Market News
- Why Is Draganfly (DPRO) Stock Down 17% Today?
- Why Is LogicMark (LGMK) Stock Up 31% Today?
- Why Is BiomX (PHGE) Stock Up 8% Today?
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Read More: Penny Stocks —How to Profit Without Getting Scammed
On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2023/03/why-is-shift-technologies-sft-stock-down-14-today/.
©2023 InvestorPlace Media, LLC
As an enthusiast and expert in the field of stock market analysis and financial markets, my extensive knowledge allows me to delve into the intricacies of the provided article. Let me provide you with a breakdown of the key concepts used in the article "The 5 Best Stocks to Buy for 2024" by William White on March 29, 2023, regarding Shift Technologies (SFT) stock:
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Shift Technologies (SFT):
- Shift Technologies is a company listed on the NASDAQ with the ticker symbol SFT.
- It is involved in the auto industry, and according to the article, it has undergone strategic adjustments to prioritize balance sheet health, reduce cash burn, and expedite the path to profitability.
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Q4 2022 Earnings Report:
- The article discusses the Q4 2022 earnings report of Shift Technologies.
- Despite the company's earnings per share (EPS) coming in above estimates, the revenue fell below Wall Street's expectations.
- Earnings per share were reported at -$2.56, while revenue stood at $65.57 million. Wall Street had expected -$4.76 EPS and $75.33 million in revenue.
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CEO Commentary (Jeff Clementz):
- Jeff Clementz, the CEO of Shift Technologies, provided insights in the earnings report.
- The CEO highlighted that 2022 was a transformative year for the company, responding to market dynamics by adjusting strategies to enhance the balance sheet, reduce cash burn, and hasten the path to profitability.
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Guidance for Q1 2023:
- The article includes guidance for the first quarter of 2023, with Shift Technologies expecting revenue to range from $56 million to $58 million.
- Wall Street, however, anticipates Q1 2023 revenue to be higher, at $105.37 million.
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Stock Performance:
- SFT stock experienced a decline of 13.7% on the day of the article's publication (Wednesday morning) following the earnings report.
- Notably, the article mentions that the decline did not come with heavy trading, with only around 36,000 shares changing hands compared to the daily average of 451,000 shares.
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Market Dynamics:
- The CEO's comments suggest that Shift Technologies adapted its strategy in response to market dynamics in the auto industry and capital markets.
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Trading Volume and Investor Interest:
- The article notes that despite the stock's decline, trading volume on that day was relatively low, with only 36,000 shares traded compared to the daily average.
- This is considered somewhat surprising, as heavy trading often follows earnings reports.
In summary, the article provides a comprehensive overview of Shift Technologies' recent performance, financial results, CEO commentary, and market expectations, offering valuable insights for investors and traders in the stock market.
