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AppLovin, Dutch Bros Surge More Than 30% Following Upbeat Q4 Results

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“The inescapable fact is that the value of an asset, whatever its character, cannot over the long-term grow faster than its earnings do.” – Warren Buffett

Corporate earnings are one of the main drivers of stock market activity over time. That’s why earnings expectations and estimates are so important.

It’s always a good idea to keep an eye on upcoming earnings releases.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Zacks receives daily electronic data feeds and printed research reports on over 8,500 North American publicly traded companies from over 185 brokerage firms, produced by more than 3,200 analysts.

In addition, our firm records 25,000 earnings estimate revisions and changes in broker recommendations weekly. At any given point in time, we’re monitoring well over 200,000 earnings estimates and other related data looking for any change.

It’s safe to say that analysts have become pretty darn good at anticipating quarterly results for the companies they cover.

As good as analysts are at predicting corporate earnings, it seems that a few companies are making that job increasingly difficult. After the bell yesterday, two companies stood out after delivering upbeat quarterly results.

AppLovin, Dutch Bros Smash Earnings Estimates

App marketing platform AppLovin (APP - Free Report) posted fourth-quarter earnings of $1.73 per share on sales of $1.37 billion, handily beating analysts’ estimates of $1.34/share and $1.26 billion, respectively. AppLovin earnings jumped 253% year-over-year in Q4 while revenue rose 44%.

AppLovin operates a mobile app marketing platform which provides tools to developers to improve the monetization and marketing of their content in the United States and internationally. The company’s e-commerce advertising service matches advertiser demand with publisher supply through the use of auctions.

APP shares rose over 700% in 2024, and it appears that trend is continuing this year. The stock spiked over 30% this morning following its quarterly EPS beat:

StockCharts
Image Source: StockCharts

Meanwhile, coffee shop chain Dutch Bros (BROS - Free Report) delivered fourth-quarter earnings of 7 cents per share, a 75% improvement versus the same quarter in the prior year. The bottom line exceeded expectations by 250%. Revenues increased 35% to $343 million.

The company stated that it opened 32 stores spanning 11 states during the quarter, capping off a year that saw more than 150 openings. The growth story is set to continue as Dutch Bros expects to open at least 160 new shops in 2025.

BROS stock has gotten a jolt of caffeine lately, with shares jumping more than 30% on Thursday morning before paring gains slightly:

StockCharts
Image Source: StockCharts

Bottom Line

These two companies are leaders in their respective industries. Currently, AppLovin garners a Zacks Rank #2 (Buy), while Dutch Bros is a Zacks Rank #3 (Hold).

And with both stocks outperforming in the current market environment, investors would do well to include them on their watchlists if they haven’t already done so.


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