Tesla and Groupon shares jump on earnings results

But Green Mountain Coffee falls as revenue misses. The stock market suffers a modest loss, due to worries about rising interest rates.

By Charley Blaine Aug 7, 2013 5:36PM
Tesla Model S © 2013 Tesla MotorsUpdated: 6:53 p.m. ET

Stocks ended Wednesday lower, with the Dow Jones industrials ($INDU) suffering its third loss in a row.

But earnings reports from electric-car maker Tesla Motors (TSLA) and deal site Groupon (GRPN) after the close cheered investors. Shares of both companies were up sharply after hours -- and may give the market a boost on Thursday.

Tesla's Model S sedan, pictured, has won enormous praise for its design and features and sports a years-long waiting list to get one. The company earned 20 cents a share after one-time charges, far better than Wall Street had expected. The Street was looking for a loss of 17 cents. Revenue was $405 million, up from $26.7 million a year ago and 5% ahead of the Street estimate of $383 million.

Shares were up $18, or 13.4%, to $152.33 after hours. The regular close of $134.23 was down $7.92. Despite that decline, the shares are up 296% on the year.

Tesla was one of one of a number of high-profile companies reporting after Wednesday's close.

Groupon earned 2 cents a share, in line with estimates. Revenue was $609 million, up from $606 million a year ago. It announced a $300 million share-buyback program and named Eric Lefkofsky CEO.

Shares were up $1.66, or 19%, after hours to $10.38. The regular close of $8.72 was up 2 cents.  Groupon has had a difficult time since going public in November 2011. The shares closed at $26.11 on the first day of trading, then fell to as low as $2.63 a year later. The shares are up 230%-plus since, based on Wednesday's closing price.

Green Mountain Coffee Roasters (GMCR) reported 82 cents a share in adjusted earnings, up from 52 cents a year ago and ahead of the Street estimate of 77 cents. Revenue grew 11.3% to $967 million, but analysts had expected $981 million. The company blamed the miss on sales in Canada. The shares fell $2.06 to $79.26 in regular trading and an additional $4.50, or 5.8%, to $74.70 after hours.

The problem appears to be revenue guidance. The company projected "11% to 15%" revenue growth in the fiscal fourth quarter. It had suggested growth closer to 20% in earlier reports.

The reports came as the Dow fell 48 points to 15,471, its third straight loss. But the blue chips had been down as many 97 points around 10 a.m. ET.

The Standard & Poor's 500 Index ($INX) was off 6 points to 1,691. The loss was the third straight for the index. The Nasdaq Composite Index ($COMPX) was off 12 points to 3,654, its second loss in a row. 

The market was weak in part because of Wall Street fears about the potential impact of the Federal Reserve's trimming its bond-buying program.

The 10-year Treasury yield was down to 2.6% from 2.642% on Tuesday. Crude oil (-CL) in New York dropped 93 cents to $104.37. Gold (-GC) was up $2.80 to $1,285.30 an ounce.

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4Comments
Aug 7, 2013 7:22PM
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"The Dow is a meaningless measurement for all useful purposes." -Doktor Thomas, 1988
Aug 7, 2013 6:57PM
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"(Reuters) - "Ex Goldman Trader Found Guilty for Misleading Investors." "Bond Deal Draws Fine for UBS." "JPMorgan Settles Electricity Manipulation Case for $410 million." "Deutsche Bank Net Profit Halves on Charge For Potential Legal Costs." "US Sues Bank of America Over Mortgage Securities." "Senate Opens Probe of Banks' Commodities Businesses." "US Regulators Find Evidence of Banks Fixing Derivatives Rates." "Goldman Sachs Sued for Allegedly Inflating Aluminum Prices."

So goes a sampling of headlines about the banking industry from the past week - yes, just one week. We seem to be living in an era where bankers can do no right."

 

Tesla and Groupon? Yea, those are momentum stocks that will carry us out of recovery. $150,000 battery-operated sports cars for everyone? Discount coupons used by who? According to the small businesses who extend those discounts, the return on investment is dismal. If you want to know the how and why STUPID stocks like these get lift... it's Twitter. Insider Trading is rampant. So is bank corruption (see quote above). It's time to start tearing down this crap and getting back to the time honored integrity of American Freedom, Free Enterprise, Life, Liberty and the Pursuit of Happiness for all. Come on, America... time to gather together and reclaim our GREAT nation. If you are in need of incentive... Congress just cooperated to write an Amendment to Obamacare that excludes THEM from the exchange and gives people who's average pay for causing our decay exceeds $140,000 UNTAXED Dollars... additional money for their "unique" benefit program that includes their families, staff, and who knows who else but not you or I. Anyone for tearing down DC or will some kind attorney author us a lock-tight All-For-One-Once-For-All IMPEACHMENT PETITION. We the People are no longer sheople. Recovery... it's so easy even that radical Southern anarchists who also posted on here can do it.

Aug 8, 2013 2:04PM
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I know how to make this high flyer go down....Me buying in, on the hype.
Aug 7, 2013 6:05PM
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