Today’s Premarket shows stock futures were slightly down ahead of the Fed’s interest rate decision and a flurry of corporate results.
Top stock gainers
Sensata Technologies (NYSE:ST) rose 16% after reporting strong Q1 earnings and announcing that CEO Jeff Cote will retire immediately and partnering with activist investor Elliott Investment Management. Sensata predicts 2Q24 sales of $1.025B to $1.055B, matching the consensus of $1.04B, and adjusted EPS of $0.89 to $0.95, vs $0.92.
Computer peripheral producer Logitech International’s (NASDAQ:LOGI) stock rose 9% after reporting solid FQ4 earnings and outlook. “We delivered a strong fourth quarter, with a return to growth and expanded gross margins,” said Logitech CEO Hanneke Faber. “Growth was broad-based across all regions and key categories. We start FY2025 with a focus on sustainable, profitable growth supported by several long-term trends that present opportunities for our business: new ways of working, gaming, and transformational AI.
After reporting improved Q1 and Q2 results, NXP Semiconductors (NASDAQ:NXPI) shares climbed 5%. It predicts Q2 adjusted EPS between $3 and $3.41, vs. $3.11, and revenues between $3.025B and $3.225B, vs. $3.11B. President and CEO Kurt Sievers said, “NXP’s first-quarter performance, second-quarter forecast, and early second-half outlook give us cautious hope that we’re navigating this industry-wide cyclical slump. We manage what we can, allowing NXP to generate good profitability and earnings in a tough demand market.”
Top stock losses
After topping the consensus in Q1 financial results, Chegg (NYSE:CHGG) shares fell 11% after the student-learning platform reported a decline in subscriptions and forecast a 5% drop in subscription revenue in Q2 despite investing heavily in AI-enabled learning. Subscription services revenue declined 9% Y/Y in Q1. Chegg (CHGG) forecasts Q2 revenues of $159M to $161M, below the consensus of $176.8M. Compared to 73% in Q1, subscription services revenue is estimated to be $144M to $146M, with gross margins between 70% and 71%. Adjusted EBITDA should drop from $46.7M to $38M to $40M.
F5 (NASDAQ:FFIV) shares fell roughly 10% after mixed FQ2 earnings and a poor Q3 forecast. The business expects Q3 EPS of $2.89 to $3.01, below the average of $3.09, and sales of $675M to $695M, below the consensus of $694.8M.
After disappointing Q1 results, MicroStrategy (NASDAQ:MSTR) shares plunged nearly 4%. Due to increasing digital asset impairment losses of $191.6M in Q1, compared with $39.2M in 4Q23 and $18.9M in 1Q23, Michael Saylor-led software company’s adjusted EPS fell to -$8.26, below the average analyst forecast of -$0.13.
Premarket
Gainers
3M Company (NYSE:MMM) shares rose 7.4% after the industrial giant exceeded analysts’ forecasts for the first quarter and stated that its dividend payment ratio will be about 40% of adjusted free cash flow.
PayPal’s (NASDAQ:PYPL) shares climbed 7.1% after the payments system operator reported a higher-than-expected 14% year-on-year increase in first-quarter total payment volume to $403.9 billion.
Eli Lilly (NYSE:LLY) shares increased 6.7% after the pharmaceutical firm posted higher-than-expected first-quarter results and raised its full-year expectations on strong sales of its blockbuster diabetes medicine Mounjaro and recently introduced weight loss therapy Zepbound.
Restaurant Brands (NYSE:QSR) shares increased 2.3% after the firm revealed plans to invest an additional $300 million in its Burger King chain to rebuild around 1,100 of its U.S. locations as part of a larger turnaround effort.
Losers
Coursera’s (NYSE:COUR) stock plunged 13% after the online learning company forecasted full-year revenue below market expectations.
Tesla (NASDAQ:TSLA) shares slumped 1.8% after a strong performance last session, with The Information claiming that CEO Elon Musk has fired two Tesla senior executives and expects to lay off hundreds more people, irritated by dropping sales.
McDonald’s (NYSE:MCD) shares declined 0.5% after the fast food company missed quarterly earnings projections due to restructuring costs and boycotts affecting Middle Eastern sales.
Paramount Global (NASDAQ:PARA) shares declined 0.4% after the entertainment conglomerate revealed that CEO Bob Bakish has stepped down despite ongoing negotiations about a possible merger with David Ellison’s Skydance Media.
Coca-Cola (NYSE:KO) shares dipped 0.2% despite the beverage company posting quarterly earnings and sales that above forecasts and upgrading its full-year organic revenue forecast. However, revenues in its vital North American market remained flat for the quarter.
Microsoft’s (NASDAQ:MSFT) shares dipped 0.2% after the software giant announced plans to invest $1.7 billion in Indonesia over the next four years to construct new cloud and AI infrastructure.
Walmart’s (NYSE:WMT) shares declined 0.1% after the retailer stated that it will liquidate all of its health-care facilities around the country, as well as its telehealth service, due to their failure to function financially.
Stocks In Focus
Pre-market, Eli Lilly (LLY) stock rose over 5%. After strong Q1 sales of its GLP-1 receptor-based medications Mounjaro and Zepbound, the world’s largest publicly listed healthcare corporation boosted its top and bottom line guidance. The rising demand for diabetes and weight loss drugs has driven Lilly’s (LLY) capitalization near to $700B in the previous year. Pharmaceutical sales were $2.32B in Q1, 26.5% of overall revenue. Lilly (LLY) CEO David Ricks stated the business is “rapidly expanding manufacturing capacity” to improve GLP-1 medication availability. Charts show LLY performance.
Coca-Cola (KO) stock fell slightly before the opening bell after impairment charges reduced its Q1 operating income and margin. The former fell 36% Y/Y and the latter 18.9% vs. 30.7%. The 2020 Coca-Cola (KO) acquisition of fairlife and the BODYARMOR trademark impairment charge of $760M affected earnings. Coca-Cola’s (KO) organic revenue climbed 11% in the quarter due to higher product prices and willing consumers. Chart KO’s performance.
McDonald’s (MCD) stock fell more than 3% before market open after its Q1 global comparable sales growth of 1.9% missed the estimate of +2.3%. International sales growth for the world’s largest fast-food company was also affected by the Middle East crisis. McDonald’s (MCD) CEO Chris Kempczinski said “consumers are more discriminating with every dollar that they spend.” Menu pricing increases and smart marketing initiatives boosted U.S. comparable sales 2.5%. Charts show MCD performance.
After the bell, Amazon.com (AMZN) will report Q1 results. Wall Street expects AMZN to earn 83 cents per share on $142.55B in revenue. Investors will always focus on Amazon Web Services (AWS)’s quarterly performance, the company’s cloud cash cow. Amazon’s (AMZN) comments on its generative AI capabilities and year-end guidance will also be watched. In February, Amazon (AMZN) reported a good holiday quarter.
Super Micro Computer (SMCI) reports after normal trading. Wall Street predicts FQ3 2024 SMCI earnings of $5.57 per share on $3.90B in revenue. From San Jose, California Super Micro (SMCI) makes rackmount servers, GPU servers, motherboards, chassis, ethernet switches, and adapters. Its ability to make AI servers has made its impending report a barometer for AI demand, especially as it did not publish preliminary results as usual. Super Micro’s (SMCI) market share and integration with Nvidia’s (NVDA) latest products will also be considered.
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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.