Personal Finance

Why Match Group, Middleby, and Michael Kors Holdings Jumped Today

Large commercial oven labeled with Middleby brand in a kitchen.

The stock market put in a mixed performance on Wednesday, with some segments moving higher while others lagged behind. Major benchmarks finished on either side of the unchanged line, pausing in their ascent toward potential record highs. China imposed new tariffs on U.S. exports, escalating trade tensions further and threatening the positive sentiment that investors have enjoyed lately. Yet plenty of companies had good news that sent their shares sharply higher. Match Group (NASDAQ: MTCH) , Middleby (NASDAQ: MIDD) , and Michael Kors Holdings (NYSE: KORS) were among the best performers on the day. Here's why they did so well.

Making a Match

Shares of Match Group soared 17% after the company behind the Tinder dating app reported its second-quarter financial results. Overall revenue at Match climbed 36% compared to the year-earlier quarter, with the number of subscribers at Tinder soaring by roughly 80% over the same period. Year-over-year earnings skyrocketed more than 150%, as much of Match Group's business has relatively low variable costs that cause higher sales to fall through to the bottom line. Threats of competition from major social media players had sent Match shares lower temporarily, but today's report shows the inherent strength of the company's existing brands and suggests that it will be tough for competitors to breach the moat that Match Group has built around its business.

Large commercial oven labeled with Middleby brand in a kitchen.

Image source: Middleby.

Middleby cooks up good results

Middleby stock jumped 14% in the wake of the latest earnings results from the maker of food service and kitchen equipment. The company saw revenue rise 15% from year-ago levels, boosted mostly from acquisitions made over the past year. Earnings were higher by 8% year over year, and Middleby said that it saw growth at all three of its major segments, including commercial food service equipment, residential kitchen equipment, and food processing equipment. Mergers and acquisitions remain a key part of Middleby's growth strategy , and moves to buy commercial food service giant Taylor, steam-cooking equipment specialist Firex, charcoal-cooking equipment company Josper, and nitro-brew leader JoeTap have the potential to produce even faster sales gains in the future.

Kors: Back in style

Finally, shares of Michael Kors Holdings finished up 7%, leading the S&P 500 on the upside. The upscale fashion retailer reported quarterly results that included substantial gains in revenue and profits, led higher largely because of its purchase of Jimmy Choo last year . Kors still has some challenges to overcome, as its 0.2% rise in comparable sales for its namesake Michael Kors retail operations shows. Yet a boost to guidance for the 2019 fiscal year built positive momentum among investors, and many have high hopes that Kors can complete its turnaround and come back into fashion within the high-end luxury retail industry.

Offer from The Motley Fool: The 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor , has tripled the S&P 500!*

Tom and David just revealed their ten top stock picks for investors to buy right now.

Click here to get access to the full list!

* Stock Advisor returns as of Aug. 6, 2018.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Middleby. The Motley Fool owns shares of Michael Kors Holdings. The Motley Fool recommends Match Group. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MTCH MIDD

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: The Changing E-Commerce Landscape

    e-Commerce Consultant James Thomson joins Jill Malandrino on Nasdaq #TradeTalks to discuss the changing e-commerce landscape, what consumers should prepare for as we head into shopping season and why you shouldn’t do last minute shipping.

    2 days ago

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More