Pre-Market : Humana gains; SolarEdge falls: Stocks in news August 02

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Pre-Market active stocks

Gainers

• Humana (NYSE:HUM) stock went up 3.1% after the health insurer beat expectations for profits in the second quarter. This was because medical costs went up less than expected.
• Advanced Micro Devices (NASDAQ:AMD) stock went up 2.5% after the chipmaker said that the release of its artificial intelligence chips will boost its yearly earnings. The company plans to release its MI300 AI chips later this year.
• CVS Health (NYSE:CVS) stock went up 1.9% after the pharmacy company beat expectations for quarterly profits. This was because its pharmacy benefit management unit did well and its health insurance business had lower-than-expected medical costs.
• Yum! Brands (NYSE:YUM) stock went up 0.9% after the fast-food company beat market expectations for quarterly comparable sales. Cheaper meals and special offers at KFC and Taco Bell restaurants brought in more customers.

Losers

• SolarEdge Technologies (NASDAQ:SEDG) stock went down 12.4% after the green energy company didn’t make as much money as expected in the second quarter.
• The stock of space tourism company Virgin Galactic (NYSE:SPCE) dropped by 7% after it revealed that its losses in the second quarter were a little bigger than the same time last year. This was because the company is working hard to get customers on flights once a month.
• Pinterest (NYSE:PINS) stock dropped 2.9% after the image-sharing and social media service’s earnings report for the second quarter showed that costs went up faster than income.
• Starbucks (NASDAQ:SBUX) stock fell 1.5% after the coffee chain revealed disappointing global comparable sales. This was because North American demand for its drinks and food was starting to slow down.
• Kraft Heinz (NASDAQ:KHC) stock went down 0.5% after the company missed quarterly sales and profit estimates because customers were buying less packaged meals and sauces because of rising prices.

MARKET MOVERS 

After-Market movers

GAINERS

• Upwork Inc. (NASDAQ:UPWK) 19% higher; Q2 EPS of $0.10 beat consensus estimate of $0.00. Revenue for the quarter was $168.61 million versus the consensus expectation of $162.53M.
• Clorox (NYSE:CLX) 8% higher; Q4 EPS of $1.67, $0.51 above consensus estimate of $1.16. Quarterly revenue was $2B versus the consensus expectation of $1.88B. Clorox expects FY2024 EPS of $5.60–$5.90 versus the average of $5.63. Net sales might rise 2% to 2% over last year. Organic sales should rise 2%–4%.
• DoorDash Inc (NYSE:DASH) 5% higher; Q2 EPS ($0.44), $0.03 poorer than analyst estimate ($0.41). Quarterly revenue was $2.13B, exceeding the average expectation of $2.06B.

LOSERS

• DXC Technology Co (NYSE:DXC) 15% down; Q1 EPS of $0.63, $0.19 below consensus estimate of $0.82. Quarterly revenue was $3.45 billion, below the consensus forecast of $3.56B. DXC Technology expects Q2 2024 EPS of $0.65-$0.70, compared to $0.92 consensus. DXC Technology expects Q2 2024 revenue of $3.43-3.46B, compared to $3.57B consensus. DXC Technology expects FY2024 EPS of $3.15-$3.40, below the average of $3.86. DXC Technology expects FY2024 revenue of $13.88-14.03B, below the consensus of $14.4B.
• Quantumscape Corp (NYSE:QS) 12% down; started an underwritten public offering of Class A common stock. QuantumScape to sell $300M of Class A common stock for working capital and other objectives.
• PayPal (NASDAQ:PYPL) 8% down; Q2 EPS of $1.16, $0.01 better than analyst estimate of $1.15. Revenue for the quarter was $7.29B versus the consensus expectation of $7.27B. PayPal expects Q3 2023 EPS of $1.22-$1.24, compared to $1.22 consensus. PayPal expects $7.4B in Q3 2023 revenue, compared to $7.32B consensus. PayPal expects FY2023 EPS of $4.95.
• Qualcomm (NASDAQ:QCOM) 7% down; Q3 EPS of $1.87, $0.06 better than consensus estimate of $1.81. Quarterly revenue was $8.44B, below the consensus forecast of $8.51B. Qualcomm expects Q4 2023 EPS of $1.80-$2.00 versus the consensus of $1.91. Qualcomm expects Q4 2023 revenue of $8.1-8.9B, compared to $8.7B consensus.
• Etsy (NASDAQ:ETSY) 5% down; Q2 EPS $0.45, $0.03 better than analyst estimate of $0.42. Revenue was $628.9M compared to $618.62M expected. Consolidated GMS (NYSE:GMS) fell 0.6% year-over-year and 0.4% currency-neutral to $3.0B. Etsy GMS was $2.6B, down 0.7% year-over-year and 0.4% currency-neutral. Etsy expects Q3 2023 revenue of $610-645M versus the average of $632.43M.

MIDDAY MOVERS

GAINERS

• SolarEdge Technologies (NASDAQ:SEDG) stock plunged 18% after the renewable energy firm missed revenue estimates for the second quarter.
• The stock of Advanced Micro Devices (NASDAQ:AMD) slumped 6.5% after the chipmaker forecasted that the release of its artificial intelligence chips will boost its yearly results, and that it plans to introduce its MI300 AI processors later this year.
• Pinterest (NYSE:PINS) shares slumped 5% after the company’s second-quarter earnings release revealed that spending climbed faster than revenue.
• Virgin Galactic (NYSE:SPCE) stock slumped 4.8% after the space tourism business disclosed second-quarter losses that were somewhat higher than in the previous year, as it moves closer to flying clients on monthly flights.

LOSERS

• Humana (NYSE:HUM) stock jumped 6% after the health insurer exceeded second-quarter profit forecasts, helped by a lower-than-expected increase in medical expenditures.
• CVS Health (NYSE:CVS) stock jumped 3.7% after the pharmacy firm exceeded quarterly earnings forecasts, thanks to strength in its pharmacy benefit management section and lower-than-expected medical expenditures in its health insurance division.
• Starbucks (NASDAQ:SBUX) shares rose 2.6% after the coffee company announced poor global comparable sales, indicating that demand for its beverages and food is decreasing in North America.
• Kraft Heinz (NASDAQ:KHC) stock rose 1% after the packaged food company missed quarterly sales and profit forecasts due to inflation-affected customers purchasing less packaged meals and sauces.
• Yum! Brands (NYSE:YUM) stock increased 0.1% after the fast-food company topped market expectations for quarterly comparable sales, thanks to cheaper meals and promotional discounts at its KFC and Taco Bell locations.

UPGRADES BY EXPERTS

Boeing receives yet another raise.

Boeing (NYSE:BA) was raised by Northcoast Research from Sell to Neutral after the company’s Q2 earnings were released last week.

The Q2 sales of $19.8 billion and EPS of ($0.82) exceeded the average projections of $18.49 billion and $0.90, respectively. The business also disclosed intentions to boost 737 MAX narrowbody jet production.

Atlantic Equities have  a Neutral upgrade, Goldman Sachs

Goldman Sachs (NYSE:GS) was upgraded by Atlantic Equities from Underweight to Neutral, and its price objective was increased from $330.00 to $350.00.

JPMorgan boosted its price objective for KeyCorp (NYSE:KEY) to $13.00 from $11.50 and upgraded the company from Underweight to Neutral, citing a reduced likelihood of an impending dividend cut.

Baird boosted its price objective for Oshkosh (NYSE:OSK) to $137.00 from $89.00 and upgraded the company from Neutral to Outperform.ResMed (NYSE:RMD) was upgraded by RBC Capital from Sector Perform to Outperform, and its price objective was increased from $262.00 to $284.00.

DOWNGRADES BY EXPERTS

Rivian downgraded before Q2.

Rivian Automotive (NASDAQ:RIVN) shares fell more than 1% yesterday and are down 4% in premarket today after Cantor Fitzgerald downgraded the company to Neutral from Overweight with a price target of $29.00 (from $27.00) due to recent outperformance and increased competition from Tesla (NASDAQ:TSLA), General Motors (NYSE:GM), and Ford Motor (NYSE:F) in the electric vehicle market.

ZoomInfo’s two-firm rating drop after Q2 miss

After reporting lower Q2 sales and outlook, two Wall Street companies downgraded ZoomInfo Technologies (NASDAQ:ZI), causing its share price to plunge nearly 27% yesterday.

Deutsche Bank downgraded to Hold from Buy and lowered its price target to $20.00 from $31.00.

Crestwood Equity’s two downgrades

After missing revenue and adjusted EBITDA in Q2, Crestwood Equity Partners (NYSE:CEQP) earned two downgrades.

PMorgan reduced the firm to Underweight from Neutral and lowered its price objective to $28.00 from $30.00.

EA demoted to Neutral

Following Q1 earnings, UBS downgraded Electronic Arts (NASDAQ:EA) to Neutral from Buy with a $142.00 price objective (from $140.00).

Earnings Calendar

Wednesday, August 2

Qualcomm (QCOM), CVS Health Corp. (CVS), Shopify (SHOP), PayPal Holdings (PYPL), Equinix (EQIX), Thomson Reuters Corp. (TRI), Ferrari (RACE), Humana (HUM), Phillips 66 (PSX), and MetLife Inc. (MET) report earnings

Thursday, August 3

Apple (AAPL), Amazon (AMZN), ConocoPhillips (COP), Amgen (AMGN), Stryker Corporation (SYK), Booking Holdings (BKNG), Gilead Sciences (GILD), Airbnb (ABNB), Cigna (CI), and Occidental Petroleum (OXY) report earnings

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