ANGI - Why ANGI Homeservices Stock Dropped 10% on Aug. 11
Shares of ANGI Homeservices (NASDAQ: ANGI) fell roughly 10% in early trading on Aug. 11. By roughly 11 a.m. EDT, shares were still lower by roughly 9%. The big story was earnings, which were released after the market close on Aug. 10, and they were pretty upbeat. The issue that investors reacted to so negatively was the future.
ANGI Homeservices runs an online site that connects home-services providers with customers. It gets a cut of the action and earns advertising revenue. When COVID-19 first made its appearance, demand for the company's services dropped off in April. However, it quickly came back, with swift year-over-year growth in May and June.
At the end of the quarter, the final tally was pretty impressive, given the broader economic headwinds. For example, revenue was up 9% year over year in the quarter, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 13%, and earnings went from $0.01 per share in the second quarter of 2019 to $0.02 per share in the same stanza of 2020. Wall Street had been expecting a loss of $0.01 per share.