U.S. markets
U.S. stocks were in the green on Friday despite the Labor Department releasing a disappointing April jobs report. Payrolls rose by 266,000, far below estimates. The unemployment rate was at 6.1% versus 5.8% expected and 6.0% in March. The Dow rose 0.44% to 34,702, the S&P 500 Index advanced 0.79% to 4,234 and the Nasdaq Composite Index was up 1.32% to 13,813.
Gainers
- Mckesson Corp. (MCK, Financial) +6.1%
- Centene Corp. (CNC, Financial) +6.1%
- Albemarle Corp. (ALB, Financial) +5.6%
- EOG Resources Inc. (EOG, Financial) +5.5%
- Tapestry Inc. (TPR, Financial) +4.4%
- Nike Inc. (NKE, Financial) +3.4%
Losers
- Kellogg Co. (K, Financial) -1.8%
- HollyFrontier Corp. (HFC, Financial) -1.8%
- Unum Group (UNM, Financial) -1.5%​
- Conagra Brands Inc. (CAG) -1.1%
- Valero Energy Corp. (VLO, Financial) -0.8%
- Whirlpool Corp. (WHR, Financial) -0.5%
Global markets
The main European stock markets traded in the green.The U.K.'s FTSE 100 rose 0.71%, Germany's Dax climbed 1.18%, France's CAC 40 inched up 0.27% and Spain's Ibex 35 gained 0.84%.
In Asia, Japan's Nikkei 225 gained 0.09%, India's BSE Sensex added 0.52%, Hong Kong's Hang Seng retreated 0.09% and China's Shanghai Composite was down 0.65%.
Dropbox releases earnings report
Shares of Dropbox Inc. (DBX, Financial) gained more than 2% on Friday to $25.03 after the company posted its fiscal first-quarter results.
Revenue grew 12.4% year over year to $511.6 million, beating estimates by $6.43 million. It posted earnings of 35 cents per share, beating analysts' estimates by 5 cents.
Co-founder and CEO Drew Houston had the following to say:
"We kicked off the year with a profitable Q1, along with strong revenue growth and free cash flow. We welcomed DocSend to the team, saw great momentum with HelloSign, and continued to make meaningful progress against our 2021 priorities. In this new era of distributed work, we have a big opportunity to deliver more value to our customers and shareholders, and I'm excited for what's ahead."
The company record 15.83 million paying users for the quarter, up from 14.59 million a year ago. Average revenue per paying user was $132.55, as compared to $126.30 in the prior-year period.
Moreover, the GAAP gross margin was 78.6%, up 130 basis points from the same period last year. Non-GAAP gross margin was 80.2%, an increase from 78.3%. The GAAP operating margin was 8.3%, up from 5.9%, and the Non-GAAP operating margin was 29.1%, up from 16.1%.
Looking at the company's financial position, net cash provided by operating activities was $115.7 million, up from $53.3 million in the year-ago quarter. Free cash flow was $108.8 million, up from $25.5 million.
Dropbox shares have retreated about 13% from the beginning of the year versus the S&P 500's gain of 13%.
During the fourth quarter of 2020, Mario Gabelli (Trades, Portfolio) started a new position with 10,000 shares.
Disclosure: The author holds no positions in any stocks mentioned.
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