LAW - Hot Stocks: LZ jumps on earnings; ILMN slides; CAH sets 52-week high; LAW drops 50%+

Wall Street saw a significant advance on Friday, adding to gains posted earlier in the week amid hope that cooler-than-expected inflation data would lead to a more dovish Federal Reserve. The Nasdaq led Friday's climb, rising by 2%.

Earnings news provided the catalyst for many of the day's standout movers. This included LegalZoom.com ( NASDAQ: LZ ), which posted a double-digit percentage gain despite lowered revenue guidance. A commitment to controlling costs allowed the firm to raise its adjusted EBITDA target.

Elsewhere, Cardinal Health ( CAH ) added to an upswing it has seen over most of the past month, allowing the stock to set a new 52-week high. This week, the stock got a boost from news of a new CEO.

Looking at some of the day's most notable decliners, CS Disco ( LAW ) lost more than half its value on a weak forecast. Meanwhile, Illumina ( ILMN ) retreated in the wake of its quarterly report.

Standout Gainer

LegalZoom.com ( LZ ) surged 18% after announcing quarterly results that surpassed projections. The rally came despite lowered revenue guidance for the rest of the year. With a focus on expense reduction, the company raised its EBITDA forecast and said it expects to grow its market share in 2023.

The online legal tech company recorded Q2 revenue of $164M, a 9% advance from last year. While the firm suffered a 9% drop in transaction revenue, subscription revenue jumped 32%.

LZ slashed its full-year revenue forecast to $650M to $660M, compared to its previous target range of $612M to $616M. The company said the reduced projection comes as a weaker economy cuts into spending by small- and medium-sized businesses.

However, even while it reduced its top-line forecast, the firm stated that spending cuts will allow it to raise its full-year adjusted EBITDA target to $55M. LZ said that the lower expenses will allow it "to err on the side of being nimble and responsive to this environment."

LZ closed Friday's session at $12.97, an advance of $1.98. The stock recorded its highest close since mid-June.

Standout Decliner

The release of weaker-than-expected results put Illumina ( ILMN ) under pressure, with the stock plummeting 8%.

The maker of gene sequencing technology reported a Q2 net loss of $535M, reversing a profit of $185M seen in the same period last year. Results were weighed down by $609M in legal contingencies.

The company said revenue advanced about 3% from last year to reach $1.16B. However, this total represented a dip of about 5% from the previous quarter.

"Our second quarter results did not meet our expectations as challenges in a complex macroeconomic environment more than offset the growth we continue to see in sequencing runs on our platforms," the firm's CEO said of the results.

Hurt by the financial figures, ILMN declined $19.12 to close at $208.32. The slide trimmed gains recorded over the last few weeks, as the stock comes off a 52-week low of $173.45 established in mid-July.

Notable New High

Cardinal Health ( CAH ) continued a recent upswing, spurred earlier this week by news that the company had made a major leadership change. Shares rose an additional 5% on Friday, reaching a new 52-week high.

Early Thursday, CAH announced that its CEO, Mike Kaufmann, has resigned . In his place, the company has promoted CFO Jason Hollar to become the new chief executive.

CAH also issued a mixed earnings report. The company's bottom-line figure missed expectations, but revenues surged 11% to $47.1B. The top-line number exceeded analysts' consensus by about $2.3B.

Shares finished higher by 5% on Thursday and continued the upswing during Friday's action, rising another $3.32 to close at $69.32. During the session, CAH also reached an intraday 52-week high of $69.55.

Friday's advance also represented the 17th gain out of the past 19 sessions. The stock has climbed 33% in 2022 as a whole.

Notable New Low

CS Disco ( LAW ) saw its shares fall off a cliff after the legal tech company slashed its forecast for the full year . The stock cratered 54% on the news.

The company beat expectations with its Q2 results. However, the firm lowered its outlook for 2022, saying it now sees a top-line figure between $132M and $136M. Analysts were looking for a total around $152M.

LAW crumbled $15.62 to conclude trading at $13.43. During the session, the stock also reached an intraday 52-week low of $12.78.

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