Hot Stocks: HAS, CHDN soar on earnings news; MORN, WOLF drop

Stocks rallied on Thursday, bolstered by strong quarterly results from Meta. With a wave of buying in tech, the Nasdaq led the upswing, climbing by 2.4%.

Along with Facebook's parent company, Hasbro (NASDAQ:HAS) was another winner out of the latest round of earnings reports. The stock posted a double-digit percentage rise after the toy maker issued an optimistic forecast as part of its quarterly update.

Churchill Downs (CHDN) also surged following the release of its financial figures, jumping to a new 52-week high. On the downside, Morningstar (MORN) and Wolfspeed (WOLF) both plunged in the wake of their respective quarterly results.

Standout Gainer

Hasbro (HAS) received a boost from an upbeat outlook, even as its latest quarter continued to show the impact of inventory issues. With investors focusing on the guidance, shares of the toy maker jumped almost 15%.

HAS reported a disappointing quarterly profit for Q1, hurt by a nearly 14% drop in revenue. However, the company predicted adjusted EPS of $4.45-$4.55 for the full year, compared to a $4.39 analyst estimate.

The rosy projection sent the stock higher by $7.52 on Thursday, with shares closing the day at $58.93. With the advance, HAS reached its highest finish since mid-February.

Standout Decliner

A disappointing forecast included in the company's quarterly earnings report prompted a wave of selling in Wolfspeed (WOLF). The stock dropped 20% on the news.

The semiconductor company posted a narrower-than-expected Q3 loss, with revenue that surged 22% from last year. However, the company gave a weak Q4 forecast, calling for a loss of $0.17-$0.23 per share on revenue of $212M-$232M. Analysts were looking for a loss of $0.12 per share on revenue of $234.6M.

Dragged down by the guidance, WOLF dropped $11.40 to close at $46. Shares also reached an intraday 52-week low of $44.25. Overall, the stock has dropped about 32% in 2023.

Notable New High

A strong quarterly performance propelled Churchill Downs (CHDN) to a new 52-week high, with shares of the horse racing company jumping 14% on the day.

The company said adjusted EBITDA surged to $223M in Q1 compared to $129M seen in the same period last year. Meanwhile, revenue reached a record level of nearly $560M, as the top line for its Live and Historical Racing segment more than doubled from last year.

CHDN closed Thursday's trading at $287.27, an advance of $35.43 on the day. During the session, the stock reached an intraday 52-week high of $289.79. Looking longer-term, shares have jumped 37% in 2023.

Notable New Low

Morningstar (MORN) dropped to a 52-week low in the wake of its quarterly report. With adjusted earnings that plummeted from last year, shares slumped almost 10% during the session.

The investment research firm said it posted a net loss for the period compared to the profit in the same period last year. On an adjusted basis, the firm recorded a Q1 profit, but the figure cratered 60% from the prior-year period.

"Despite continued strength in our license-based product areas, soft credit issuance and market volatility proved challenging for our other product areas and had a significant impact on overall revenue growth and profitability," the company's CEO said.

The financial figures triggered a significant selloff in MORN, with shares plunging to a 52-week low of $163.28. The stock recovered a bit later in the day, eventually finishing at $172.03, down $18.59 from the previous close.

For more of the day's biggest winners and losers, head over to Seeking Alpha's On The Move section.