Today’s Premarket shows stock futures were neutral ahead of the U.S. GDP data.
Top stock gainers
AstraZeneca (AZN) shares rose 5% after the drugmaker maintained its FY2024 total revenue and core EPS outlook and posted Q1 earnings that exceeded top-line and bottom-line estimates. Double-digit increase in core business segments—Oncology (26%), CVRM (23%), R&I (17%), and Rare Disease (16%)—led to 19% revenue growth.
Ford Motor’s (F) stock climbed over 3% after a good Q1 report. Ford Pro’s revenue rose 36% and EBIT doubled due to increasing demand for vehicles, vans, and software services. Ford Blue’s robust product selection and 40% hybrid vehicle sales growth for the year impressed. The business increased its full-year free cash flow target to $6.5B-$7.5B from $6B-$7B and trimmed its capital expenditure projection to $8B-$9B from $8B-$9.5B to emphasize efficiency and link EV investments with consumer uptake. The company reported FY2024 adjusted EBIT tracking at $10B–$12B.
Top stock losses
Meta Platforms (META) shares fell more than 12% on lackluster outlook, overshadowing the Q1 beat. The parent firm of Facebook and Instagram expects Q2 revenues of $36.5B to $39B, below the average of $38.32B. The business also boosted its FY2024 capital expenditure projection to $35B–$40B from $30B–$37B to accelerate infrastructure investments to support the AI strategy. “While we are not providing guidance for years beyond 2024, we expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts.”
IBM (IBM) shares fell as much as 8% after lackluster Q1 results and announcing its $35 per share cash acquisition of HashiCorp. Consulting and Infrastructure sales disappointed, lowering the company’s top line.
Despite better-than-expected Q1 profits, ServiceNow (NOW) shares slumped 5% on a disappointing forecast. It forecasts 2Q24 subscription revenue between $2.525B and $2.53B (including a $17M foreign exchange effect), below the consensus estimate of $2.54B. However, the business upped its FY2024 subscription revenue projection to $10.56B–$10.58B from $10.555B–$10.575B.
Premarket
Gainers
Southwest Airlines (NYSE:LUV) stock plummeted 7.2% after the low-cost airline lowered its 2024 Boeing (NYSE:BA) aircraft delivery projections for the third time and announced cost-cutting initiatives.
American Airlines (NASDAQ:AAL) stock climbed 5.2% after the company anticipated current-quarter profit above forecasts due to a resurgence in corporate travel and robust summer demand.
Harley-Davidson (NYSE:HOG) stock jumped 3.5% after its first-quarter profit beat analyst expectations on North American sales.
Royal Caribbean (NYSE:RCL) stock jumped 3.4% as the cruise operator lifted its annual profit prediction again, boosted by record cruise demand and onboard expenditure.
Chipotle Mexican Grill (NYSE:CMG) stock jumped 3.3% after its first-quarter results topped estimates due to menu price increases.
Merck (NYSE:MRK) stock jumped 1.9% after the company upped its annual profit and revenue prediction due to strong sales of Keytruda and Gardasil.
After beating quarterly revenue projections, Comcast (NASDAQ:CMCSA) stock climbed 1.2% due to greater Peacock streaming subscriber growth and robust theme park attendance.
Ford (NYSE:F) stock increased 1.1% on good first-quarter earnings, led by strong commercial vehicle performance, hybrid vehicle sales growth, and optimistic expectations.
Losers
Meta Platforms (NASDAQ:META) stock plunged 14% after the Facebook parent anticipated increased spending and lower revenue, citing concerns that AI costs are surpassing its benefits.
Meta’s gloomy outlook dampened expectations for Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) ahead of their earnings, while Snap (NYSE:SNAP) and Pinterest (NYSE:PINS) also fell sharply.
IBM (NYSE:IBM) shares fell 8.6% on dismal first-quarter earnings, but the company also announced a $6.4 billion deal to buy Hashicorp (NASDAQ:HCP), up 4%, to extend its cloud-based software solutions to capitalize on AI-powered demand.
Caterpillar (NYSE:CAT) stock slumped 4% after sales volumes declined as demand eased from last year’s surge, although quarterly profit grew on higher prices.
Stocks In Focus
After missing Q1 revenue projections, Caterpillar (CAT) shares fell nearly 6% pre-market. Additionally, the Irving, Texas-based company forecasts current quarter sales to be lower Y/Y and full-year 2024 revenue to be flat to 2023’s record level. Caterpillar (CAT), a major construction equipment manufacturer, saw revenues drop 5% Y/Y. Every region except North America saw a drop in construction equipment income due to fewer end-user sales. Charts show CAT performance.
Honeywell (HON) rose over 1% before the bell. The industrial conglomerate exceeded its Q1 top and bottom line due to strong aviation and aerospace sales offsetting a dip in industrial and building sales. Q1-end Honeywell (HON) backlog grew 6% Y/Y to $32B on $10.2B in orders, driven by long-cycle client demand. “We also had pockets of recovery in short cycles and expect broader participation as the year progresses and channels normalize,” Honeywell (HON) CEO Vimal Kapur said. The company also maintained its full-year sales and earnings forecast.
Microsoft (MSFT) will release FQ3 2024 numbers after the bell. Wall Street forecasts $2.84 per share on $60.89B in sales for Satya Nadella’s company. Microsoft (MSFT) is a leader in the AI revolution thanks to its multi-billion dollar investment in ChatGPT-developer OpenAI. Wedbush analysts term it Microsoft’s (MSFT) “iPhone moment.” Investors will watch its AI adoption via its recent results.
After regular trading, Alphabet (GOOG) (GOOGL) shares will also be closely watched for Q1 results. On $78.70B in revenue, Wall Street expects Mountain View, Calif.-based company to earn $1.50 per share. Alphabet (GOOG) (GOOGL) advertising sales and Gemini AI integration will be monitored by investors. The internet giant’s holiday-quarter ad sales disappointed investors in January, and Q1’s spending climate remains tight.
Microsoft-backed cybersecurity firm Rubrik’s (RBRK) market debut may boost the IPO market today. The company priced its 23.5M class A share IPO at $32/share late Wednesday. Today, the New York Stock Exchange will list the shares as “RBRK.” Rubrik (RBRK) helps organizations secure cloud data and recover from intrusions. The company’s subscription annual recurring income rose 47% to $784M on January 31.
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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.