Hot Stocks: LYFT, CNXN plunge on earnings; LGF.A climbs; XOM hits 52-week high

The major U.S. equity averages finished Friday’s trading with a mixed performance, ending a down week dominated by concerns about Federal Reserve policy. The Dow and S&P 500 finished higher, while the Nasdaq recorded its third consecutive day of declines.

Lyft (NASDAQ:LYFT) garnered 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 earning news, slumping to a 52-week low.

Looking at some of the day’s standout gainers, Lions Gate Entertainment (LGF.A) jumped after issuing Street-beating financial figures. Meanwhile, Exxon (XOM) rode a rise in oil prices to a new 52-week high.

Standout Gainer

Lions Gate Entertainment (LGF.A) (LGF.B) generated significant buying interest after releasing better-than-expected quarterly results. The news fueled a 25% advance in shares of the movie and TV producer.

LGF.A reported Q3 non-GAAP EPS of $0.26, surprising analysts, who had generally expected the company to post a mild loss. The earnings beat came on revenue that climbed 13% from last year to reach $1B.

“We enter our fourth quarter with encouraging signs across all of our businesses: a rebounding domestic box office just as we bring our biggest slate in years to theatres; renewals of six key Lionsgate Television series during or immediately after the close of the quarter; and improved STARZ economics due to its international reorganization,” the company’s CEO said.

Thanks to the Street-topping results, LGF.A surged $2.09 to close at $10.34. This added to an upswing that began in late December. Shares have surged 87% so far in 2023. However, this has only made up a portion of the losses posted over the course of 2022. LGF.A remains 24% lower over a one-year timespan.

Standout Decliner

Lyft (LYFT) plunged in the wake of its quarterly report, dragged down by a disappointing forecast for the current quarter. The weak projections sparked a 36% tumble in the stock price.

The ride-hailing service said it now projected Q1 revenue of about $975M, lower than the $1.1B that analysts were looking for. This followed a performance in Q4 that saw revenues rise 24% to $1.2B, with an adjusted EBITDA loss of $248M.

LYFT finished Friday’s session at $10.31, a decline of $5.91 on the day. The loss reversed most of the gains posted so far in 2023, taking the stock back to a closing level last seen in late December.

Just ahead of the earnings release, LYFT recorded its highest finish since September. Overall, shares are down 45% over the past six months and 74% over the past year.

Notable New High

Rising oil prices gave a lift to energy stocks. This included industry giant Exxon Mobil (XOM), which surged 4% and reached a new 52-week high.

XOM advanced $4.82 to close at $119.17. During the session, shares reached an intraday 52-week high of $119.63.

The stock has been drifting higher since early December, adding to gains recorded last fall. Shares have now climbed about 28% in the past six months. Looking over the past year, XOM has climbed about 49%.

Friday’s advance came as news of a Russian production cut sent oil prices higher. Crude climbed 2% on the session to reach a level just short of $80 a barrel.

Notable New Low

The release of earnings news prompted selling in PC Connection (CNXN). Shares dropped 14% to reach a new 52-week low.

The IT services provider reported a Q4 profit of $0.71 per share, missing projections by $0.02 per share. Meanwhile, revenue slumped nearly 9% to $732.5M.

Dragged down by the disappointing results, CNXN retreated to an intraday 52-week low of $40.71. Shares trimmed their losses slightly by the close but still ended at $41.55, a decline of $6.76 on the day.

The drop took the stock below a recent trading range. Shares have generally seen choppy trading over the past year, with the stock reaching a 52-week high of $56.68 late last year. Overall, shares are now down 13% for the past 12 months.

For more of the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.