Happy hump day!
Spotify's Push Into Podcasts
The streaming company missed revenue expectations and provided light 2019 guidance.
Spotify, however, was profitable with operating income, net income and free cash flow being positive for the first time in the company's history. The company reported earnings of €442 million euro ($503.4 million), €0.36 a share, which topped analysts' estimates of a loss of €0.16 a share.
The bad news, however, was that while revenue jumped 30% to €1.495 billion, Wall Street was looking for revenue of €1.501 billion, reported TheStreet's Tony Owusu
The company also announced that it acquired two podcast companies: Gimlet Media and Anchor.
So, what does that mean for Spotify? Here's what Jim Cramer thinks after his interview with CEO Daniel Ek.
Disney's Market Magic
Disney (DIS) - Get Walt Disney Company Reportreported revenue of $15.3 billion, topping analyst estimates of $15.05 billion, on adjusted earnings of $1.84 per share, better than the $1.55 analysts expected.
Media networks revenue and operating income both rose 7%. Disney also reported media network revenue of $5.9 billion.
"After a solid first quarter, with diluted EPS of $1.86, we look forward to the transformative year ahead, including the successful completion of our 21st Century Fox acquisition and the launch of our Disney+ streaming service," said Robert Iger, Disney's Chairman and Chief Executive Officer. "Building a robust direct-to-consumer business is our top priority, and we continue to invest in exceptional content and innovative technology to drive our success in this space."
Disney is an Action Alerts PLUS holding. After the results, the AAP team assessed the numbers and noted: "We believe the quarter to be largely positive, despite the segment revenue misses thanks to improved operating efficiencies leading to better than expected operating margins across the board."
Red Dead Couldn't Redeem Take-Two
Take-Two Interactive (TTWO) - Get Take-Two Interactive Software, Inc. Report posted net income of $179.9 million, or $1.57 a share, up significantly from $25.1 million, or 21 cents a share, a year earlier. However, Take-Two also said it received a $108.7 million tax benefit in the quarter related to deferred tax assets, reported TheStreet contributor M. Corey Goldman.
Looking forward, Take-Two said it it expects fiscal fourth-quarter earnings of 67 cents to 77 cents a share on net revenue of $530 million to $580 million. Analysts were looking for profit of 84 cents a share on sales of $609 million.
Apple Loses its Head of Retail
Apple's (AAPL) - Get Apple Inc. (AAPL) Report retail chief Angela Ahrendts is leaving the company in April "for new personal and professional pursuits," the tech giant announced after the bell on Tuesday, reported TheStreet's staff.
Ahrendts, who joined Apple in 2014 after previously serving as the CEO of luxury fashion retailer Burberry, is being succeeded by Deidre O'Brien, the company's Vice President of People. In a new role of SVP of Retail + People, O'Brien will continue overseeing "people-related functions" such as talent development and recruiting, while also overseeing the company's 506 retail stores and 35 online stores.
Apple has steadily grown its retail footprint during Ahrendts' tenure, and now has 70,000 retail employees. The company has also taken steps -- most notably through its Today at Apple teaching sessions, which launched in 2017 -- to turn Apple Stores into community centers.