Pre-Market : Meta gains ; Chipotle falls: Stocks in news July27

21Pre-Market

Pre-Market active stocks

Gainers

• The stock of Meta Platforms (NASDAQ:META) surged 8.8% after Facebook parent firm reported double-digit revenue growth in the second quarter, while CEO Mark Zuckerberg stated that the business’s large bet on artificial intelligence is “paying off.”
• Comcast (NASDAQ:CMCSA) stock jumped 2.7% after the media conglomerate topped quarterly revenue projections, thanks to greater theme park attendance and the successful theatrical releases of “The Super Mario Bros Movie” and “Fast X.”
• McDonald’s (NYSE:MCD) stock increased 1.8% after the burger business exceeded forecasts for quarterly comparable sales, as budget-conscious diners sought out less expensive options.
• Harley-Davidson (NYSE:HOG) stock increased 0.8% after the legendary motorcycle manufacturer attributed a steep drop in profit in the second quarter on a brief suspension of production due to a parts shortage rather than decreasing demand.
• Northrop Grumman (NYSE:NOC) stock jumped 0.4% on Thursday after the aerospace and military business boosted its full-year profit and revenue expectations, anticipating strong weapon demand amid increased geopolitical tensions.

Losers

• Chipotle (NYSE:CMG) stock slumped 8.5% after the burrito restaurant operator missed quarterly sales projections due to a slowdown in months-long pricing hikes.
• Southwest Airlines (NYSE:LUV) stock dropped 6.5% after the company warned of greater labour expenses for the year and indicated lower pricing for the current quarter.
• eBay (NASDAQ:EBAY) stock slumped 6% after the e-commerce platform’s third-quarter earnings prediction fell short, overshadowing better-than-expected second-quarter performance.

MARKET MOVERS 

After-Market movers

GAINERS

• Roku (ROKU) 9% higher; Q2 EPS ($0.76), $0.51 better than analyst forecast ($1.27). Compared to the average forecast of $773.02 million, quarterly revenue was $847.2 million. Roku expects $815 million in Q3 2023 revenue, compared to $810 million estimate.
• Intel (INTC) 7% higher; Q2 EPS $0.13, $0.17 better than consensus forecast ($0.04). Revenue was $12.9 billion versus $12.09 billion expected. Intel expects Q3 2023 revenue of $12.9-13.9 billion versus the consensus of $13.23 billion.
• First Solar (FSLR) 7% higher; Q2 EPS of $1.59 beat analyst forecast of $1.00. Compared to the average forecast of $722.21 million, quarterly revenue was $811 million. First Solar expects FY2023 EPS of $7.00-$8.00, below the consensus of $7.22. First Solar expects FY2023 sales of $3.4-3.6 million versus the consensus of $3.48 million.
• KLA Corporation (KLAC) 3% higher; Q4 EPS of $5.40, $0.54 greater than consensus expectation of $4.86. Quarterly revenue was $2.35 billion, exceeding the consensus expectation of $2.26 billion. KLA Corporation expects Q1 2024 EPS of $4.75-$5.95 versus the average of $4.74. KLA Corporation expects Q1 2024 revenue of $2.225-2.475 billion versus the consensus of $2.23 billion.

LOSERS

• Sleep Number Corporation (SNBR) 28% down; Q2 EPS $0.03, $0.10 better than consensus estimate ($0.07). Revenue for the quarter was $459 million versus the consensus estimate of $466.43 million. Sleep Number Corporation expects FY2023 EPS of $1.25-$1.75, compared to $1.55 average.
• Enphase Energy (ENPH) 12% down; Q2 EPS of $1.47, $0.19 better than consensus expectation of $1.28. Revenue for the quarter was $711.1 million versus the consensus estimate of $725.83 million. Enphase Energy expects $550-600 million in Q3 2023 revenue versus the consensus of $748 million.
• Sweetgreen, Inc. (SG) 10% down; Q2 EPS of ($0.24) may not match analyst estimates of ($0.17). Revenue for the quarter was $152.5 million versus the consensus estimate of $155.41 million. Sweetgreen, Inc. expects FY2023 revenue of $575-595 million versus the consensus of $590.3 million.
• SolarEdge Technologies, Inc. (SEDG) 7% lower after Enphase Energy earnings and disappointing forecast.
• Juniper Networks (JNPR) 6% down; Q2 EPS $0.58, $0.03 greater than consensus expectation of $0.55. Quarterly revenue was $1.43 billion versus the consensus expectation of $1.42 billion. Juniper Networks expects Q3 2023 EPS of $0.49-$0.59, compared to $0.62 consensus. Juniper Networks expects Q3 2023 revenue of $1.385 billion, below the consensus of $1.48 billion.

MIDDAY MOVERS

GAINERS

• The stock of Meta Platforms (NASDAQ:META) climbed 6.7% after Facebook parent firm reported double-digit revenue growth in the second quarter, while CEO Mark Zuckerberg stated that the business’s large bet on artificial intelligence is “paying off.”
• Comcast (NASDAQ:CMCSA) stock jumped 6.4% after the media conglomerate topped quarterly revenue projections, thanks to greater theme park attendance and the successful theatrical releases of “The Super Mario Bros Movie” and “Fast X.”
• Harley-Davidson (NYSE:HOG) stock jumped 5.7% after the legendary motorcycle manufacturer attributed a steep drop in profit in the second quarter on a brief suspension of production due to a parts shortage rather than decreasing demand.
• McDonald’s (NYSE:MCD) stock increased 2.1% after the burger business exceeded forecasts for quarterly comparable sales, as budget-conscious diners sought out less expensive options.

LOSERS

• Southwest Airlines (NYSE:LUV) stock dropped 9% after the company warned of greater labour expenses for the year and indicated lower pricing for the current quarter.
• Chipotle (NYSE:CMG) stock slumped 9% after the burrito restaurant operator missed quarterly sales forecasts due to a halt in months-long pricing increases.
• eBay (NASDAQ:EBAY) stock slumped 8.5% after the e-commerce platform’s third-quarter earnings prediction fell short, overshadowing better-than-expected second-quarter results.

UPGRADES BY EXPERTS

Boeing (NYSE:BA) is getting a boost from Bank of America.

On Thursday, BofA raised its rating on Boeing to Buy from Neutral, stating that the “worst is behind” the company, which is “in the midst of the post-COVID commercial recovery, with passenger demand emerging back to pre-pandemic levels.”

Spotify benefits from a Deutsche Bank boost.

Spotify Technology (NYSE:SPOT) shares rose more than 6% yesterday after Deutsche Bank upgraded the business to Buy from Hold with a $180.00 price objective. The bank believes that investors should take advantage of current weakness to buy the shares, calling the post-Q2 selloff “overdone.”

RBC Capital upped its price objective on Owens Corning (NYSE:OC) to $168.00 from $135.00 and upgraded it to Outperform from Sector Perform. 

Macquarie upgraded iQIYI (NASDAQ:IQ) from Underperform to Neutral and boosted its price objective to $5.12 from $2.80.

Iridium Communications (NASDAQ:IRDM) shares increased more than 1% in premarket trading today after Barclays upgraded the firm to Overweight from Equal Weight, with a price objective of $65.00 (up from $65.00).

DOWNGRADES BY EXPERTS

Morgan Stanley downgraded Carvana to Underweight.

Morgan Stanley reduced Carvana (NYSE:CVNA) to Underweight from Equalweight late Wednesday, with a $35.00 price objective (down from $12.00).

Bilibili is downgraded by JPMorgan.

Shares of Bilibili (NASDAQ:BILI) tumbled more than 2% in premarket trading today after JPMorgan downgraded the firm to Underweight from Overweight and reduced its price objective to $13.00 from $27.00.

Estée Lauder (NYSE:EL) was downgraded for the sixth time in two months by Jefferies. The brokerage downgraded its rating to Hold from Buy and set a price objective of $190.00 (down from $270.00).

UBS downgraded Kodiak Sciences (NASDAQ:KOD) from Buy to Neutral and lowered its price objective to $4.00 from $15.00. This is the fifth downgrading in as many months.

Earnings Calendar

Friday, July 28

ExxonMobil (XOM), Procter & Gamble (PG), Chevron (CVX), AstraZeneca (AZN), Sanofi (SNY), Aon (AON), Colgate-Palmolive (CL), Charter Communications (CHTR), Centene Corp. (CNC), and T-Rowe Price Group (TROW)

THURSDAY JULY 27

Mastercard (MA), AbbVie (ABBV), McDonald’s (MCD), Shell (SHEL), Linde (LIN), Comcast (CMCSA), T-Mobile (TMUS), Intel (INTC), Honeywell International (HON), and S&P Global Inc. (SPGI)

For details

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