Finance

General views of the Mickey Mouse Ferris Wheel at Disney California Adventure Park at the Disneyland Resort, which has reopened for outdoor dining and shopping on April 11, 2021 in Anaheim, California.
AaronP | Bauer-Griffin | GC Images | Getty Images

Check out the companies making headlines after the bell.
Walt Disney — Shares of Disney popped more than 6% after the company reported an earnings beat for its most recent quarter. Disney said it doubled its revenue in its parks, experiences and consumer products division, as more guests attended theme parks, stayed in branded hotels and booked cruises. It also reported total subscriptions for its streaming service that beat estimates.

Uber — Uber jumped 5% after the company beat analyst estimates on quarterly revenue and said business is starting to bounce back from omicron-induced challenges. Revenue in the company’s mobility division was up 67% from the same time a year ago, and delivery revenue was up 34%, the company reported.
Mattel — The toy and game maker’s shares climbed more than 10% after the company reported fourth-quarter earnings of 53 cents per share, compared with a Refinitiv consensus estimate of just 30 cents per share. Revenue of $1.79 billion also topped analysts’ estimates of $1.66 billion.
Twilio — The software maker’s shares soared about 20% after the company reported a revenue beat and bold quarterly guidance. Its fourth-quarter revenue was almost 10% higher than analysts expected. The company also said it saw gains from its acquisitions of Segment and Zipwhip.
MGM Resorts International — The hotel and casino operator saw its shares rise 3% after it reported a beat on the top and bottom lines. The company said its Las Vegas Strip resorts saw an occupancy rate of 86% during the quarter, compared with a 38% occupancy rate during the same period a year earlier.

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Customers shop at the CVS Pharmacy, on Morrissey Boulevard, in Dorchester, on April 2, 2020. Some pharmacy workers worry about unsafe conditions at their stores.
Pat Greenhouse | Boston Globe | Getty Images

Check out the companies making headlines in midday trading.
CVS Health — Shares of the drugstore chain fell 5.4% even after the company topped expectations in its fourth-quarter earnings report, as demand for at-home Covid tests and vaccines lifted overall store sales. The drugstore chain administered more than 20 million Covid vaccines in the three-month period, a significant jump from the number it gave in each of the prior two quarters.

Enphase Energy — The energy stock surged 12% following the company’s quarterly earnings, which showed record revenues for the fourth quarter and beats on both the top- and bottom-lines. Enphase earned an adjusted 73 cents per share, as compared with estimates of 58 cents. Revenue came in at $412.7 million, compared to expectations of $397 million.
Chipotle — Shares of the burrito chain jumped 10.2% after the company topped Wall Street’s estimates for its fourth-quarter earnings and met its expectations for revenue. Chipotle also reported a 22% increase in net sales to $1.96 billion for the quarter, meeting expectations. Same-store sales rose 15.2%, surpassing StreetAccount estimates of 14.8%.
The Container Store Group — The home retailer saw its shares tumble 22.7% after it reported sales for its fiscal third quarter were lower by 3% than the same time in the previous year and that online sales fell 36% as compared with the year before. The Container Store still reported better-than-expected profits for the quarter.
NCR Corp — Shares of the financial services software maker rose 14.3% even after the company said it would launch a review of its operations, including “alternatives available to enhance both NCR’s value and shareholder returns.” It also reported a quarterly beat on both earnings and revenue.
Penn National Gaming — Shares of the gaming and casino stock rose 5.6% after Susquehanna upgraded it to positive from neutral, saying Penn’s digital segment can “inflect positively” and has “been de-risked at current trading levels.”

Lyft — Shares of the ride-hailing company rose 6.8% after beating on the top and bottom lines of its quarterly results. Gains were capped by the fact that Lyft reported fewer active riders than in the prior quarter.
Joby Aviation — The aircraft company’s shares jumped 7.1% after Morgan Stanley reiterated its buy rating on it and pointed to its partnership with Uber as an opportunity to elevate growth.
Virgin Galactic — Virgin Galactic shares rose 4.9% even after Bernstein lowered its price target on the stock to $10 from $22, saying it worries about market appetite for space tourism investing and noting talent retention and access to capital as potential risks.
General Motors — Shares of GM rebounded Wednesday after pulling back the previous session following a downgrade from Morgan Stanley. The stock rallied 2.5%, even as another firm, Nomura, also downgraded the stock.
 — CNBC’s Maggie Fitzgerald, Yun Li and Hannah Miao contributed reporting.

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The Federal Reserve Bank of Boston today announced that Dr. Susan M. Collins will be its next president, CEO.
Courtesy: Federal Reserve Bank of Boston.

The Boston Federal Reserve, which is heading the central bank’s potential foray into digital currency and saw its leader resign last year amid a stock-trading controversy, has a new leader.
Susan M. Collins will helm the central bank branch and takes over July 1, replacing Eric Rosengren, who retired last year for health reasons and following disclosures that he had been involved in trading securities in 2020. That was around the same time the Fed was unleashing unprecedented programs to help the economy and financial markets through the Covid crisis.

Currently the provost and executive vice president for academic affairs at the University of Michigan, Collins will take over for interim president Kenneth Montgomery.
“Dr. Collins brings the technical expertise and insight to contribute to policymaking and the leadership ability to head the organization,” said Christina Paxson, the president of Brown University who led the search for the new president.
A release announcing her appointment describes the new leader as “an international macroeconomist with a lifelong interest in policy and its impact on living standards.”
The Boston Fed is heading what’s known as Project Hamilton, an exploration into the possible development of a central bank digital currency. The institution last week released a study that addresses the technical issues involved, though it took no position and established no pilot project to move ahead.
Prior to that, the Boston Fed handed the Main Street Lending Program during the pandemic.

“Throughout my career, I have been driven by a commitment to leveraging research, education, and public service to improve lives,” Collins said in a statement accompanying her announcement. “I look forward to helping the Bank and System pursue the Fed’s dual mandate from Congress – achieving price stability and maximum employment.”
The Fed is expected to embark on a new rate-hiking cycle in March as it looks to control inflation running at its hottest pace since the early 1980s, when the U.S. was confronting the stagflation dual threat of low growth and rising prices.
Along with that, the central bank likely will begin reducing its more than $8 trillion in bond holdings by summertime. A 4% unemployment rate has come with rising wages that are applying additional inflationary pressures.
Collins will come on board after the academic year wraps up. Montgomery will stay on as first vice president and chief operating officer.

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Cleveland Federal Reserve President Loretta Mester said the central bank will be prepared to hike rates at any meeting.
Mester added she favors an aggressive reduction in the Fed’s balance sheet, which she said should include outright sales of mortgage-backed securities.

Cleveland Federal Reserve President Loretta Mester laid out an aggressive plan for reducing easy-money policies this year, saying the central bank will be ready to hike rates at any meeting and should be looking at shedding mortgage-backed securities it is holding.
“Each meeting is going to be in play,” Mester said Wednesday at a virtual event hosted by the European Economics and Financial Centre. “We’re going to assess conditions, we’re going to assess how the economy’s evolving, we’re going to be looking at the risks, and we’re going to be removing accommodation.”

Her comments come with markets widely expecting the Fed to raise its benchmark short-term borrowing rate at its March meeting. Traders are pricing in at least four more increases through the course of the year.
Mester said she sees a March hike lately but doesn’t expect to raise the rate by more than 25 basis points, or a quarter percentage point, as is the norm. But she was emphatic that it’s time for the central bank to start reversing the historically accommodative measures it took during the Covid pandemic crisis.
“I don’t like taking anything off the table,” she said. “I don’t think there’s any compelling case to start with a 50 basis point [increase]. Again, we’ve got to be a little bit careful. Even though you can well telegraph what’s coming, when you take that first action, there’s going to be a reaction.”
Mester is a voting member this year of the Federal Open Market Committee, which sets interest rates and other monetary policy measures. She noted she will be watching inflation closely. If it declines over the course of the year, that would lead to fewer rate hikes, while an acceleration would prompt more hawkish action.
Another big question for the Fed this year is in how it will start reducing the portfolio of bonds it has acquired through monthly purchases. The central bank’s total balance sheet is close to $9 trillion, having doubled during the pandemic.

The Fed is likely to allow some of the proceeds from its holdings to roll off each month while reinvesting the rest. However, Mester advocated a more active approach, in which the Fed would sell outright some of the $2.66 trillion in mortgage-backed securities it is holding.
In the last balance sheet reduction, which ran from 2017 to 2019, it used a passive roll-off.
Like other officials, Mester noted the conditions are different this time: The holdings are far larger and the economy is in a stronger position, so the balance sheet reduction can be done more quickly.
She advocated that the central bank shed its mortgage holdings and focus on the Treasury market.
“I do think it’s important that the Fed not be allocating its credit to particular sectors,” Mester said.
The Fed’s monthly asset purchases have been cut back to $60 billion and are expected to end completely by March. Market opinion is coalescing around the balance sheet reduction beginning in the summer.
Earlier in the day, Atlanta Fed President Raphael Bostic also called for several rate hikes this year and a quick reduction of the balance sheet holdings.

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The tax season started Jan. 24 and runs to April 18 for most people.
The IRS is warning of a likely increase in scams during this time.
Criminals often try impersonating IRS agents via text, e-mail and phone calls. Their goal is to steal money or sensitive personal information.

Brothers91 | E+ | Getty Images

Tax season is underway — and the IRS is warning of a likely increase in scams targeting taxpayers.
Agency officials are sounding the alarm on “IRS impersonation scams,” in which criminals pose as IRS agents to try stealing money or personal information. The latter can lead to identity theft — which allows crooks to file tax returns in victims’ names and steal their tax refund, in addition to other negative financial effects.

Common frauds this tax season may include text-message scams, e-mail schemes, phone scams and unemployment fraud, according to an IRS bulletin issued Thursday.
More from Personal Finance:Here’s who can file taxes to the IRS for free this yearFeds won’t seize child tax credit for past-due student loansWhat to know about tax credits and deductions
These cons can happen throughout the year, but tax season is an especially ripe time for fraudsters.
“With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds,” IRS Commissioner Chuck Rettig said in the memo.
Here are some common scams to watch for.

1. Text message scams

Text hoaxes involve messages with bogus links that claims to be IRS websites or other online tools. Last year, for example, there was an increase in texts referencing Covid-19 and stimulus payments.
The IRS doesn’t use texts (or social media platforms) to discuss personal tax issues, such as bills or refunds.
“The IRS reminds everyone NOT to click links or open attachments in unsolicited, suspicious or unexpected text messages — whether from the IRS, state tax agencies or others in the tax community,” according to the agency bulletin.

2. E-mail hoaxes

E-mail schemes are similar — they involve victims getting an unsolicited message appearing to be from the IRS or a program closely linked to the agency. However, the IRS doesn’t use email to request personal or financial information.
The tax bureau initiates most contacts via regular mail delivered by the U.S. Postal Service.
(The IRS will call or come to a home or business in some circumstances, such as when a taxpayer has an overdue tax bill or delinquent tax return. But they’ll generally first receive several letters from the IRS in the mail.)

3. Phone scams

Criminals generally leave pre-recorded, urgent messages requesting a call back, and threaten victims with an arrest warrant, deportation or revocation of licenses if they don’t.
Thieves can mask the true caller ID number to make it seem like an IRS office, local sheriff’s office, state department of motor vehicles or other federal agency is calling.

EmirMemedovski | E+ | Getty Images

Callers may be requesting payment for an owed tax bill. However, the IRS will generally first mail a bill to taxpayers, according to the agency. And all tax payments should never be made payable to third parties — only to the U.S. Department of the Treasury.
The IRS will never ask for credit or debit card numbers over the phone, or demand immediate payment using a specific payment method like prepaid debit card, gift card or wire transfer. The agency also lets taxpayers question or appeal the owed amount.
Individuals who think they may owe a bill can examine the balance in their online account.

4. Unemployment fraud

There’s been an uptick in unemployment fraud during the pandemic. Organized crime rings and other thieves use stolen personal data to file fraudulent unemployment claims in victims’ names.
Victims may only discover the identity theft at tax time, when they receive a 1099-G tax form detailing unemployment compensation they never collected. Unemployment benefits are taxable income at the federal level, and in most states.
Workers who get an inaccurate 1099-G should report it to the issuing state agency and request a corrected Form 1099-G.

What steps to take?

Taxpayers may only discover an identity theft when filing a tax return electronically and finding a return has already been filed with their Social Security Number. The IRS may also send a letter about a suspicious return filed with their SSN.
The IRS recommends a few steps:

Respond immediately to any IRS notice in the mail. Call the number provided.
Continue to pay taxes and file your tax return, even if you must do so by paper. (Note: A paper return will likely delay processing and refunds.)
Complete IRS Form 14039, Identity Theft Affidavit, if an e-filed tax return is rejected because of a duplicate filing under their SSN or if instructed to do so by the IRS. Print and attach the form to a paper return and mail according to instructions.
Those who’d previously contacted the IRS about tax-related identity theft but didn’t have a resolution should call 1-800-908-4490 for specialized assistance.

Identity-theft victims should also consider:

Checking a credit report for suspicious activity or unauthorized lines of credit. You can request a free credit report every week through AnnualCreditReport.com or call 1- 877-322-8228.
Freezing credit to protect against new accounts being opened in their name.

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Atlanta Federal Reserve President Raphael Bostic spoke to CNBC’s “Squawk Box” on Wednesday.

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Check out the companies making headlines before the bell:
Peloton (PTON) – Peloton added 1% in premarket trading after surging more than 20% in each of the past two sessions. Yesterday’s gains came after the fitness equipment maker announced that CEO John Foley was stepping down in favor of former Spotify and Netflix CFO Barry McCarthy and that the company would be cutting 20% of its corporate positions.

Canopy Growth (CGC) – The Canada-based cannabis producer’s stock rallied 6% in the premarket after it reported a narrower-than-anticipated loss as well as better-than-expected revenue for its latest quarter. Cannabis sales declined but were offset by growth in its drinks and vapes categories.
Reynolds Consumer Products (REYN) – Reynolds shares fell 1.8% in premarket trading after the consumer products company reported a mixed quarter: beating bottom-line estimates but reporting revenue that fell short of Wall Street forecasts. Reynolds also forecast weaker-than-expected revenue for the current quarter.
Chipotle Mexican Grill (CMG) – Chipotle reported an adjusted quarterly profit of $5.58 per share, beating the $5.25 consensus estimate, with revenue in line with analyst forecasts. The restaurant chain said it was raising menu prices to deal with higher costs for labor and food, and said they would likely be raised again this year. Chipotle jumped 6.1% in the premarket.
Lyft (LYFT) – Lyft earned an adjusted 9 cents per share for its latest quarter, 1 cent above estimates, with the ride-hailing service also reporting better-than-expected revenue. The stock fell 3.7% in the premarket as ridership numbers came in below analyst forecasts, although that was offset by higher fares and longer trips by Lyft customers.
Nikola (NKLA) – Nikola denied a report that it instituted a hiring freeze and that the electric truck maker has lost nearly its entire supply chain leadership. Nikola said its supply chain department is “intact” and it continues to hire. The stock added 1.4% in premarket trading.

Xpeng (XPEV) – Xpeng leaped 6.8% in the premarket after the electric vehicle maker’s Hong Kong shares were included in a trading link to mainland China. Inclusion in the Shenzhen-Hong Kong Stock Connect link allows Chinese investors easier access to those shares.
Enphase Energy (ENPH) – Enphase surged 20.3% in premarket action following a better-than-expected quarterly report from the maker of solar and battery systems. Enphase earned an adjusted 73 cents per share for the quarter, beating the 58-cent consensus estimate.
XPO Logistics (XPO) – The logistics company’s shares jumped 3.4% in the premarket after its quarterly results exceeded analyst forecasts. XPO said strong North American trucking business was among the factors driving those results.
Container Store (TCS) – The specialty retailer’s shares tumbled 26% in the premarket despite better-than-expected profit and sales for the company’s most recent quarter. Overall sales were down 3% from a year ago and online sales tumbled by 36% compared with a year earlier.
NCR (NCR) – The financial technology and services company’s stock soared 11.3% in premarket trading after it said it would conduct a strategic review of its operations, adding that it believes there is substantial shareholder value yet to be unlocked.

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Adyen reported net revenue of 556.5 million euros ($635.9 million) in the second half of 2021, up 47% year-on-year.
Earnings before interest, tax, depreciation and amortization (EBITDA) rose 51%, to 357.3 million euros.
Shares of Adyen rose around 10% — though they’re still down more than 20% year-to-date.

Pieter van der Does, chief executive officer of Adyen.
Simon Dawson | Bloomberg | Getty Images

Dutch payments processor Adyen reported a 51% jump in core earnings in the first half of 2021, topping expectations and sending its stock price sharply higher.
The company said Wednesday that net revenue in the period came in at 556.5 million euros ($635.9 million), up 47% year-on-year. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 51%, to 357.3 million euros.

That was higher than the 552 million euros of net revenue and 346 million euros of EBITDA expected by analysts, according to Reuters.
Adyen’s profit margin climbed to 64% in the second half, up from 61% in the first half. Its total processed transaction volume climbed 72% to 300 billion euros.
The firm said its guidance remained unchanged from the last time it published results.

Shares of Adyen around 10% Wednesday — though they’re still down more than 20% year-to-date amid a slump in tech stocks due to fears over higher interest rates. The Amsterdam-based firm has a market value of almost $60 billion.
Speaking about Adyen’s share price decline, CEO Pieter van der Does told CNBC: “That doesn’t impact our thinking. We are building for the long term.”

Divergence with PayPal

Adyen’s earnings report was in stark contrast to that of its U.S. peer PayPal, which reported a mixed set of results in the fourth quarter and weak guidance. PayPal at the time blamed “exogenous factors” like inflation weighing on consumer spending.
PayPal CEO Dan Schulman also said the transition of eBay — its former owner — away to a new payments system was also “hiding some of the underlying strength of the business.” EBay has partnered with Adyen for the new system.
Adyen said its results were “bolstered by the unrelenting rise of online commerce globally.” The digital payments space has benefited from changing consumer habits in the coronavirus era, with e-commerce adoption accelerating significantly.
The firm said it saw in-store shopping roar back to life in the second half of 2021, with point-of-sale volumes on its platform nearly doubling year-on-year to 41.8 billion euros, outpacing the growth of online volumes.
Van der Does said his company isn’t worried about rising inflation impacting consumer spending.
“We are expanding so much with our current merchant base, that dampens effects that people might be buying less because we’re expanding as a company,” he said.

“In terms of inflation in pricing, our pricing is for a large part ad valorem. So we are automatically compensated for inflation there.”

No M&A plans

Founded in 2006, Adyen acts as a middleman between other payment offerings and big merchants such as Uber, Netflix and Spotify. The company listed on the Euronext Amsterdam stock exchange in 2018 with a valuation of over $15 billion at the time.
It’s facing increased competition from a slew of rivals both big and small. Stripe, the U.S. payments software business, was last privately valued at $95 billion, while U.K. rival Checkout.com recently secured a $40 billion valuation.
The payments sector has undergone significant consolidation over the years, with legacy processors such as FIS and Worldpay combining to fend off the threat of competition from upstart players.
Adyen said its take rate — the fees it charges merchants for processing transactions — continues to decline as a “natural consequence” of its business model and growth strategy.
Nevertheless, van der Does ruled out the idea of acquiring another firm.
“We are not a fan of doing acquisitions,” he told CNBC. “We want to organically build a global company. And now with more than 40% of net revenues coming from outside the EMEA region, you see that we are delivering on that.”

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