Major U.S. stock averages finished mixed on Friday, ending a week dominated by concerns about Federal Reserve policy. The Dow and S&P 500 ended higher, while the Nasdaq posted its third straight day of decline.
Lyft (NASDAQ: LYFT) drew significant attention during the day, losing more than a third of its value after its earnings report included a downbeat forecast. PC Connection ( CNXN ) also fell on the earnings news, falling to a 52-week low.
Looking at some of the day’s standout gains, Lions Gate Entertainment ( LGF.A ) jumped after posting some incredible financial numbers. Meanwhile, Exxon ( XOM ) lifted oil price gains to a new 52-week high.
Lions Gate Entertainment ( LGF.A ) ( LGF.B ) generated significant buying interest after posting better-than-expected quarterly results. The news spurred a 25% rise in the shares of the film and TV producer.
LGF.A reported third-quarter non-GAAP EPS of $0.26, surprising analysts, who had generally expected the company to post a slight loss. Earnings are better because of revenues that grew 13% compared to last year and reached $1 billion.
“We enter our fourth quarter with encouraging signs across all of our businesses: a jump in the domestic box office, just as we bring to theaters our biggest record in years; the renewal of six key Lionsgate Television series during or immediately after the end of the quarter; and an improved STARZ economy thanks to the international reorganization,” said the company’s executive director.
Thanks to the best performance on the street, LGF.A rose $2.09 to $10.34. This contributed to the rise that began at the end of December. The stock is up 87% so far in 2023. However, this has only partially offset the losses seen during 2022. LGF.A remains 24% lower in the one-year period.
Lyft ( LYFT ) fell after its quarterly report, dragged down by a disappointing forecast for the current quarter. Weak projections caused the share price to fall by 36%.
The ride-hailing service said it now projects first-quarter revenue of about $975 million, lower than the $1.1 billion expected by analysts. This followed a fourth-quarter result where revenue rose 24% to $1.2 billion, with an adjusted EBITDA loss of $248 million.
LYFT ended the session on Friday at $10.31, down $5.91 on the day. The loss reversed most of the gains posted so far in 2023, sending shares back to closing levels last seen in late December.
Just before the earnings announcement, LYFT posted its highest close since September. Overall, the stock has fallen 45% in the past six months and 74% in the past year.
Significant New High
Rising oil prices lifted energy stocks. That includes industrial giant Exxon Mobil ( XOM ), which rose 4% to hit a new 52-week high.
XOM advanced $4.82 to close at $119.17. During the session, the stock hit an intraday 52-week high of $119.63.
Shares have been rising since early December, adding to the gains seen last fall. The stock is now up about 28% over the past six months. Looking back over the past year, XOM has climbed about 49%.
Friday’s advance came after news of Russia’s output cuts boosted oil prices. Crude oil rose 2% during the session to reach a level slightly below $80 per barrel.
Significant new low
The earnings news boosted selling in PC Connection (CNXN). Shares fell 14% to hit a new 52-week low.
The IT services provider reported fourth-quarter earnings of $0.71 per share, missing estimates by $0.02 per share. Meanwhile, revenue fell nearly 9% to $732.5 million.
Dragged by the disappointing results, CNXN retreated to an intraday 52-week low of $40.71. Shares trimmed their losses a bit by the close, but still finished at $41.55, down $6.76 on the day.
The drop took the stock below its recent trading range. The stock has seen generally volatile trading over the past year, with the stock hitting a 52-week high of $56.68 late last year. Overall, the stock is now down 13% over the past 12 months.
For more of the day’s biggest gainers and losers, head over to the Seeking Alpha on the Move section.