Today’s Top Performers
Stock futures rose premarket Tuesday ahead of a key inflation data that might impact the Federal Reserve’s monetary policy.
Top stock gainers
Clover Health (NASDAQ:CLOV) shares climbed 5% as Q4 sales exceeded expectations. The company’s 2023 Adjusted EBITDA gain was particularly noteworthy, according to CEO Andrew Toy. Clover Health plans to use its unique care management platform, including Clover Assistant and Clover Home Care, to empower doctors in early chronic illness detection and management in 2024 and beyond.
Despite posting a quarterly loss and a cautious forecast for Q1 and FY2024, The Beauty Health Company (NASDAQ:SKIN) shares rose over 20% on optimistic Q4 results. Q1 sales are forecast to be $77M–$83M, below $85.5M, with adjusted EBITDA between $6M and $9M due to the seasonal downturn. Sales are predicted to stay steady or grow slightly, with an adjusted EBITDA target of $40M, compared to $398M in 2023 and $411.7M in 2024.
Top stock losses
Despite top-line growth of ~13% Y/Y, Surgepays (NASDAQ:SURG) shares fell 19% after missing the consensus mark in FY2023 earnings. CEO Brian Cox said that the ACP ceased accepting applicants and will run out of financing in April 2024. Surgepays expects Congress to support the initiative to grow its client base. If not, the company will focus on organic development, key hiring, and strategic acquisitions for its non-subsidized MVNO business and Comprehensive Platform Services.
Dollar Tree (NASDAQ:DLTR) shares fell 9% after the company revealed a Q4 earnings loss and a dismal forecast. Compared to the consensus estimate of $7.69B, the company expects Q1 consolidated net sales to range from $7.6B to $7.9B, with enterprise and Dollar Tree same-store sales growing by low-to-mid-single-digits and Family Dollar sales flat. Quarterly diluted EPS is expected to be $1.33–$1.48, much below the consensus of $1.71. In FY2024, net sales are predicted to be $31B to $32B, matching the consensus of $31.74B, while diluted EPS is $6.70 to $7.30, compared to $7.07.
Stocks in focus
Tesla (NASDAQ:TSLA) was among the most frequently traded stocks before the opening bell, falling more than 2% after Wells Fargo downgraded it to Sell-equivalent Underweight from Equal Weight. The firm said that future price cuts might hurt the electric vehicle (EV) giant’s bottom line and that its valuation compared to its “Magnificent 7” peers was “likely a risk.” Despite being an EV and battery “leader,” Tesla (TSLA) traded at 58x against 31x for the Magnificent 7 group, according to Wells Fargo. Tesla (TSLA) is the only Magnificent 7 member without a $1T value.
Lennar (LEN) shares will be watched following the closing bell for FQ1 2024 earnings. Wall Street expects LEN to earn $2.22 per share on $7.41B sales. Mortgage rates fell and applications surged in the week to March 7, but the company’s results will come against a pressured U.S. home purchasing environment owing to near-record mortgage rates. Lennar’s (LEN) earnings release will follow D.R. Horton’s (DHI) late January earnings report, which revealed dismal quarterly orders.
SentinelOne (S) Class A shares will be watched for FQ4 2024 earnings in extended trading. Wall Street anticipates SentinelOne (S) will lose 4 cents per share on $169.37M in revenue. SentinelOne (S) is likely to gain from a surge in ransomware assaults in the second half of 2023, like many cybersecurity companies. Many companies and customers are increasing security investment. In FQ3, Mountain View, Calif.-based firm saw significant annualized recurring revenue growth.
Boeing (BA) fell 1% pre-market, staying in the limelight. Over the past three days, the stock has dropped 9.3% due to unfavorable headlines and airline safety issues. A United Airlines (UAL) 777-300 aircraft from Sydney to San Francisco had to land on Monday owing to gasoline seeping from its undercarriage, the fifth incident in seven days for Boeing (BA) planes. As the leading planemaker’s quality difficulties worsen, major U.S. airlines are lowering their aircraft delivery expectations or considering switching to Airbus (OTCPK:EADSF) (OTCPK:EADSY) to fulfill objectives.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.