Shares of Planet Fitness fell nearly 33% after the gym operator trimmed its full-year earnings outlook, guiding to roughly 4% earnings growth year over year instead of the prior 9% to 10% expansion target. The downgrade underscores a more challenging margin and growth environment for the chain as it navigates a consumer backdrop that investors are watching closely. Vital Farms followed with about a 20% drop after reporting a surprise first-quarter loss and trimming its full-year earnings outlook. Datadog climbed about 28% after posting a first-quarter beat, delivering 60 cents of earnings per share, above the consensus of 51 cents, and guiding second-quarter revenue above estimates. AAON, the Oklahoma-based HVAC equipment maker, surged roughly 40% after a strong first quarter across earnings, EBITDA and revenue, and it lifted its full-year revenue guidance by as much as 45%.
Other notable moves included Shake Shack, which slid about 29% after first-quarter results fell short of expectations and the company posted an operating loss of $2.6 million. Its earnings per share were breakeven versus the 12-cent consensus estimate, while revenue came in at $366.7 million versus a $372 million consensus. Whirlpool gave up about 12% after trimming its full-year guidance to an adjusted earnings range of $3 to $3.50 per share on revenue around $15 billion, down from prior targets that had implied significantly higher earnings. The company also disclosed a regulatory filing tying downturns in the U.S. market to macro headwinds linked to geopolitical tensions, noting a decline consistent with recession-level pressures in late February and March.
Shell, the U.K.-based energy titan, slipped about 2.7% on U.S. listings after posting stronger-than-expected first-quarter profit but dialing back the pace of its quarterly buyback to $3 billion from $3.5 billion. Oil prices had been volatile in the wake of regional tensions but have since retreated, trading below the $100 level at times. Carlyle Group was down around 3% after reporting after-tax distributable earnings of 89 cents per share for the first quarter, below the 93-cent consensus estimate, with revenue also lower year over year.
Arm Holdings, the chip designer, posted fourth-quarter adjusted earnings of 60 cents and $1.49 billion in revenue, beating the consensus on both metrics. However, its shares slipped about 10% after an initial move higher. Zillow Group shares fell about 2.4% following a first-quarter residential revenue of $450 million, modestly below the StreetAccount estimate of $454.2 million, even as the company topped other lines. Fortinet jumped about 20% after it raised its full-year billings guidance to a new range of $8.8 billion to $9.1 billion, with earnings and revenue outlooks beating the LSEG consensus.
IonQ slid more than 8% as first-quarter adjusted losses before interest, taxes, depreciation and amortization rose to $96.8 million, wider than the $80.4 million projected by analysts. Fastly, the cloud edge platform operator, tumbled 39% as its guidance suggested a softer Near-Term. The company expects second-quarter earnings to be between 5 and 8 cents per share, versus the 4-cent consensus, and revenue between $170 million and $176 million, in line with expectations on the lower end. Separately, first-quarter results did beat on both the top and bottom lines.
Albemarle, the specialty chemicals producer, rose about 7% after posting a first-quarter beat across adjusted earnings and revenue, with earnings of $2.95 per share on revenue of $1.43 billion, surpassing consensus estimates. Akamai Technologies slipped about 7% ahead of its upcoming results, after a stretch of gains that reached fresh 52-week highs. Papa John’s International saw first-quarter adjusted earnings of 32 cents on revenue of $478.6 million, missing clearly on both the earnings and revenue prints when compared with consensus estimates. Warby Parker rose around 9% after first-quarter revenue of $242 million exceeded expectations, though earnings fell short of the consensus.
Peloton Interactive moved higher by roughly 7.9% after reporting third-quarter revenue of $630.9 million, topping the consensus of $618.3 million, though adjusted EBITDA fell short of analyst estimates. CNBC’s team contributed to the report, with data corroborated by FactSet and LSEG consensus figures across the disclosed results.
Correction: This article has been updated to reflect that Datadog reported first-quarter earnings per share of 60 cents; a prior version misstated the figure.
Key takeaways
- Price move: Major moves across consumer, software and industrials, led by Planet Fitness down about 33% and Datadog up roughly 28%.
- Catalyst: Downshift in Planet Fitness’s earnings outlook; Datadog’s quarterly beat with above-consensus Q2 guidance; several other names reported mixed results with a mix of upgrades (AAON, Fortinet) and downgrades (Shake Shack, Whirlpool).
- Implication: The session underscores a bifurcated landscape where software and specialized equipment names are lifting on better-than-expected results, while consumer discretionary and durable goods faces margin or demand headwinds that weigh on valuations.
What drove the move
The standout stories of the session hinge on earnings and outlook revisions that shifted investors’ expectations for 2024. Planet Fitness’s guidance cut sent a clear warning about growth and profitability in consumer-facing fitness services, amplifying concerns about discretionary spending and membership churn in a high-inflation environment. Vital Farms’s surprise quarterly loss and the accompanying cut to full-year targets reinforced the fragility of a consumer-goods supply chain facing input-cost pressures and pricing power constraints.
In contrast, Datadog’s beat-and-raise narrative reinforced the resilience of enterprise software and cloud-delivered services as businesses continue to digitize and optimize operations. The second-quarter revenue guide above consensus underscored a continued willingness among organizations to invest in observability and security platforms. AAON’s quarterly outperformance across earnings, EBITDA and revenue, and its uplift in full-year revenue guidance, highlighted strength in the industrial and construction ecosystems, where demand for HVAC equipment can reflect broader capex momentum.
Fortinet’s solid performance on the day, paired with raised billings guidance, signaled improving security spending that complements a broader digital transformation cycle. Albemarle’s strong quarter added to the message that energy-related materials and chemicals are still benefiting from steady industrial demand, even as other sectors wobble. Conversely, Fastly’s weaker-than-ideal guidance reminded investors that cloud-edge growth remains uneven, particularly as pricing and customer churn pressures persist in competitive environments.
Market reaction
Trading reflected a mixed risk appetite: tech and software-linked names often led gains on better-than-expected results, while consumer-focused retailers and manufacturing beneficiaries faced sharper moves on guidance revisions. Energy and industrials displayed more muted shifts, with some names trimming expectations after robust early-year data tempered by inflation and rate jitters. The breadth of movers illustrates a market parsing earnings signals against a backdrop of macro uncertainty, with strategists watching the cadence of guidance revisions for the rest of earnings season.
Bigger picture
Analysts say the current session reinforces a broader theme: corporate profits are bifurcated between digitally oriented, high-margin software and select industrials versus consumer and manufacturing segments exposed to cost pressures and demand volatility. The moves come as investors assess how earnings trends align with expectations for inflation, interest rates and geopolitical tensions that can influence consumer confidence and capex cycles. The delineation between winners and laggards could persist as companies update guidance through the remainder of the quarter, with investors emphasizing whether the improvement in software and security demand can sustain multiple expansion in a higher-rate environment.
What to watch next: upcoming earnings reports from other software, cloud, and hardware names, along with key macro indicators and central-bank signals in the coming weeks. Investors will be monitoring how guidance revisions evolve, especially for names exposed to consumer discretionary spending and project-based capex, as well as any further shifts in energy prices that could influence inflation expectations and commodity-related stocks.
