Earnings roundup: Under Armour, Facebook, Google, Twitter

Yahoo Finance's Emily McCormick joins The First Trade with Alexis Christoforous and Brian Sozzi to discuss the latest quarterly earnings reports from Under Armour, Facebook, Google and Twitter.

Video Transcript

ALEXIS CHRISTOFOROUS: One stock bucking the downward trend is Under Armour. That stock is rallying here in the premarket after blowing past Wall Street estimates with its earnings report. I want to bring in Yahoo Finance's, Emily McCormick, who's been digging through that one for us this morning. Hi, Emily. What can you tell us about Under Armour?

EMILY MCCORMICK: Well, Alexis, Under Armour benefiting from heightened demand for comfortable clothing and workout attire during the pandemic. We saw sales there for the quarter ending in September at $1.4 billion. That was better than the $1.2 billion expected, and about flat over last year following two back to back quarters previously of major declines on the top line. Now we saw online ordering the big sales driver here.

Direct to consumer revenue was up 17% to $540 million. That did help offset a decline in wholesale. Geographically, still a little bit of weakness that we saw from Under Armour's home market, since North America revenue did fall 5%. But we did see international revenue picking up the slack there with an 18% jump.

Now, finally, the company also announced this morning that it agreed to sell its MyFitnessPal fitness tracking app to private equity firm, Francisco Partners, for $345 million. Under Armour had purchased that platform five years ago. And then in terms of guidance, the company actually raising its expectations for the fourth quarter to see revenue down at a low teen percentage rate versus previous guidance were down 20% to 25%. Again, we do see shares of Under Armour up in the premarket session. Alexis and Brian.

ALEXIS CHRISTOFOROUS: All right, we're going to be speaking with the CEO of Under Armour, Patrick Frisk, in just a bit on Yahoo Finance's "On The Move." Got to get to those big tech stocks though. Facebook, Google, Twitter all out with earnings after yesterday's closing bell, and it was a mixed bag, Emily, right?

EMILY MCCORMICK: That's right, Alexis. So online advertising did show signs of a strong comeback here for the third quarter based on all of these results. For Facebook, we saw revenue up 22% to $21 and 1/2 billion, and daily active users were up 12% to $1.82 billion. Both of those metrics better than expected, but we did see some pressure here for Facebook shares overnight since users had actually declined quarter over quarter in the US and Canada. That's something Facebook had warned about earlier as stay in place orders lifted and people could go back out and not need to use social media as frequently.

A similar trend here that we saw for Twitter, monetizable daily active users coming in light at 187 million versus the 195 million expected. We did see revenue for Twitter returning to growth year over year. That was up 14% to $936 million, and a big beat there on the top line. But that missed on user growth really taking a toll on the stock this morning, down by double digit percentages.

And then, finally, Alphabet, of course, the parent company of Google, one of the few big tech companies to see shares sharply higher in the premarket session. We saw digital advertising rebounding here as well. Company returning to top line growth with revenue, excluding traffic acquisition costs, up 15% to $38 billion during the quarter. Again, we do see shares of that company on the rise. Shares of Facebook and Twitter under a bit of pressure. Alexis.