Stocks dropped in the wake of the Federal Reserve’s latest interest rate hike, with the Nasdaq leading the major averages lower with a decline of more than 3%. While the central bank signaled it might slow the pace of rate increases going forward, there were also signs that policymakers were targeting a higher terminal rate.
The Fed decision dominated overall trading, but several names still moved on stock-specific stories. Among these, earnings news remained a common catalyst, including sharp gains in Chegg (CHGG) and Super Micro Computer (SMCI).
On the other side of the spectrum, Tupperware (NYSE:TUP) crumbled more than 40% following a disappointing earnings report. Meanwhile, Rogers Corp. (ROG) showed a similar retreat as a deal to acquire the company fell through.
Standout Gainer
The release of better-than-expected quarterly report sparked buying in Chegg (CHGG). Helped by a rise in subscribers, shares of the educational platform surged almost 22%.
CHGG reported Q3 results that exceeded expectations on both the top and bottom lines. Revenue fell 4% from last year, but the firm reported a 9% increase in subscribers.
The company also gave an upbeat forecast, predicting revenue for the year between $762M and $765M. Analysts were looking for a total of around $760M.
Bolstered by the results, CHGG surged $4.64 to close at $25.75. The advance took the stock above a recent trading range and to its highest level since April.
Shares are now higher by 47% over the past six months. However, this has failed to fully recover losses posted earlier in the year. CHGG remains 17% lower for 2022 and is well off its 52-week high of $63.12.
Standout Decliner
Shares of Rogers Corp. (ROG) fell off a cliff, plunging 44% on news that its takeover deal with Dupont (DD) had fallen apart.
DD terminated its $5.2B acquisition of ROG, citing an inability to obtain timely regulatory clearance. ROG will receive a termination fee of $162.5M.
ROG closed the session at $127.83, a decline of $101.66 on the day. The merger deal was originally announced a year ago, sending ROG surging. With Wednesday’s drop, the stock reached levels last seen in November of 2020.
Notable New High
Super Micro Computer (SMCI) powered to a new 52-week high, as the firm’s quarterly report spurred 12% increase in its share price.
The company reported earnings that jumped 490% compared to last year, bolstered by improved margins and 79% sales growth. The firm’s top and bottom lines results both came in above projections.
Looking ahead, the company predicted revenue for the current quarter of $1.7B-$1.8B. This topped the $1.64B that analysts were predicting.
Early in the session, SMCI surged to an intraday 52-week high of $85.95. Shares moderated a bit from there but still closed at $80.84, a gain of $8.98 on the session.
Notable New Low
Tupperware (TUP) sold off in the wake of a disappointing quarterly report. With the financial figures pointing to a setback for the firm’s turnaround plan, shares plummeted nearly 42%.
The maker of food storage containers severely missed projections with its Q3 earnings, with revenues that retreated almost 20% from last year. The company added that it plans to make additional restructuring steps in Q4, along with instituting “stringent inventory reduction programs.”
“We experienced decelerating top line trends in Asia Pacific and North America, and continuing declines in Europe given ongoing geopolitical tensions and the difficult macroeconomic environment there,” CEO Miguel Fernandez said.
Following the earnings announcement, TUP fell $3.20 to reach $4.51. During the session, the stock also touched an intraday 52-week low of $4.20. Shares are now down 72% since the end of 2021.
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