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 (MTCH), Middleby (MIDD 3.44%), and Michael Kors Holdings (CPRI 1.57%) 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.
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.