Today, Stock futures moved lower in the premarket hours on Friday before the release of the core PCE price index, the Fed’s favorite inflation gauge.
Top stock gainers
Following a FQ3 earnings beat, Zscaler (NASDAQ:ZS) shares rose 16% as the cloud security provider boosted its annual sales outlook for the third consecutive quarter amid escalating cyberattacks. The business now forecasts sales between $2.14B and $2.142B, beating the consensus estimate of $2.12B and the previous guidance of $2.118B to $2.122B. Additionally, Zscaler increased its estimated billings prediction to $2.603B-$2.606B from the prior $2.55B-$2.57B. Non-GAAP net income per share is now forecast to be $2.99 to $3.01, above the consensus of $2.76 and the preceding projection of $2.73 to $2.77. For FQ4, Zscaler predicts adjusted EPS of $0.69-$0.70 vs. the consensus of $0.67, with revenue between $565M and $567M vs. the consensus of $564.98M.
Biggest stock losers
Top stock losses
Despite announcing good Q1 earnings, MongoDB (NASDAQ:MDB) shares lost one fourth of their value on a gloomy forecast. The company’s Q2 sales projection of $460M=$464M fell short of the consensus of $471M and adjusted EPS of $0.46-$0.49, was far below the consensus of $0.57. FY2025 sales projection predicted to be in the range of $1.88B and $1.90B, and adjusted EPS of $2.15-$2.30 was also below the consensus of $1.94B and $2.43 respectively.
Dell Technologies (NYSE:DELL) fell 13% following mixed Q1 earnings, citing decreased profitability. The gross margin rate declined 240 bps Y/Y to 21.6% while the operating margin rate slipped 100 bps to 4.1%. The business anticipated revenue between $93.5B and $97.5B vs. the average of $94.52B and adjusted EPS of $7.40 to $7.90 vs. the consensus of $7.84.
Trump Media & Technology Group (NASDAQ:DJT) shares plummeted 9% after a New York jury convicted former President Donald Trump on all 34 charges in a criminal trial. Trump is set to be sentenced on July 11. The maximum punishment for falsifying company records is four years in jail.
Premarket
Gainers
Salesforce (NYSE:CRM) stock plunged 15% after the workplace software business announced current-quarter guidance that fell short of analysts’ estimates.
Foot Locker (NYSE:FL) stock soared over 13% as the retailer reiterated its guidance for 2024 as its turnaround strategy showed signs of improvement.
Pure Storage (NYSE:PSTG) stock jumped 9.5% after the firm disclosed solid first-quarter profits, citing AI-driven demand for its data storage platform.
HP (NYSE:HPQ) stock jumped 5.2% after the PC maker’s quarterly results topped projections on growing demand, thanks in part to AI.
Dollar General (NYSE:DG) stock climbed 4% after the bargain retailer recorded excellent first-quarter results on demand from cash-strapped customers.
Moderna (NASDAQ:MRNA) stock climbed 2.9% on a Financial Times article that suggested the U.S. government is reaching an agreement to fund a late-stage trial of the drug maker’s pandemic bird flu vaccine.
Hormel Foods (NYSE:HRL) stock increased 0.9% after the food firm topped fiscal second-quarter earnings projections and raised its full-year outlook, anticipating steady demand for higher-priced meat products.
Losers
UiPath (NYSE:PATH) stock dropped 30% after the software business revealed that CEO Rob Enslin is quitting, to be succeeded by co-founder Daniel Dines, who stood down as co-CEO on Jan. 31.
Kohl’s (NYSE:KSS) stock plummeted 20% after the department store giant posted an unexpected first-quarter deficit and issued a 2025 earnings warning.
Agilent (NYSE:A) stock slumped 13% after the healthcare equipment maker’s second-quarter revenue showed an 8.4% decline from the same period last year, with the company decreasing its 2024 estimate.
American Eagle Outfitters (NYSE:AEO) stock slumped 6.8% after the apparel retailer’s fiscal first-quarter sales came in less than projected, even as revenue was 5% over the levels seen a year ago.
Walt Disney (NYSE:DIS) stock dipped 0.1% after CNBC reported that activist investor Nelson Peltz has offloaded his entire position in the entertainment giant, earning in around $1 billion.
Stocks In Focus
Wednesday saw another major consolidation in the U.S. energy sector as ConocoPhillips (COP) acquired Marathon Oil (MRO) in an all-stock transaction worth $22.5B, including $5.4B of net debt. Marathon Oil (MRO) rose 11% pre-market, while ConocoPhillips (COP) fell roughly 1%. By adding over 2B barrels of resources to its U.S. onshore portfolio, ConocoPhillips (COP) will benefit immediately. ConocoPhillips (COP) also announced a 34% dividend increase to 78 cents per share in Q4 2024, independent of the acquisition.
Class A Chewy (CHWY) shares rose almost 14% before the bell. Plantation, Fla.-based online pet food, product, and supply store surpassed Q1 top- and bottom-line expectations and announced a stock buyback. Top boss Sumit Singh said “Chewy’s (CHWY) value proposition” was continuing “to resonate” with customers as quarterly net sales grew 3.1% Y/Y to $2.88B. A $500M class A and/or class B share repurchase program was also approved by the board.
Salesforce (CRM) shares will be watched after the closing bell for FQ1 2025 results. Wall Street forecasts $2.37 per share on $9.15B in revenue for the Dow 30 component. Investors will closely monitor the company’s customer relationship management segment to determine corporate software demand. Salesforce’s (CRM) data segment and Einstein Copilot, which Citi reported “positive demand signals” for earlier this month, will also be discussed.
HP (HPQ) will release FQ2 2024 earnings after hours, attracting attention. Wall Street anticipates HP (HPQ) to earn 81 cents per share on $12.61B in revenue. Its PC sales and demand statements will be widely scrutinized as the global PC market recovers from an inventory correction cycle this year. Investors will also watch AI-capable PC comments. Canalys predicted in March that 18% of global PC shipments will be AI-capable by 2024.
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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.