Today’s Premarket shows Stock futures rose despite Federal Reserve Chair Jerome Powell’s warning that rate reduction may take longer due to recent inflation statistics.
Top stock gainers
United Airlines (UAL) shares climbed 5% after exceeding Q1 expectations. For the quarter, the business earned $2.8B in operational cash flow and $1.5B in free cash flow, and passenger revenue grew 10.1% Y/Y, led by Pacific (+44%) and Europe (+11%) improvements. The airlines predict FY2024 adjusted EPS of $9–11, matching the consensus of $9.43.
Top stock losses
J.B. Hunt Transport Services (JBHT) stock plummeted 5% as Q1 earnings fell short of market expectations. Profit fell roughly 35% Y/Y and top line fell 9%. These factors were principally responsible for the decline: 9% lower segment gross revenue per load in both intermodal and truckload, 22% fewer loads in integrated capacity solutions, 40% lower intermodal operating income, and 75% lower truckload operating income.
ASML Holding (ASML) shares plummeted more than 4% after posting mixed Q1 earnings with a 21% Y/Y top-line fall. Despite this, the business expects FY2024 total net revenues to match 2023. ASML CEO Peter Wennink said, “Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn.” He said, “We see 2024 as a transition year with continued investments in both capacity ramp and technology to be ready for the turn in the cycle.”
Premarket
Gainers
United Airlines (NASDAQ:UAL) shares climbed 5.2% after the airline anticipated higher-than-expected profitability in the current quarter and a narrower-than-expected deficit in the first quarter, citing strong travel demand.
Eli Lilly (NYSE:LLY) shares increased 1.9% after the pharmaceutical company said that its extremely popular weight loss medicine Zepbound has the potential to cure sleep apnea in two late-stage clinical trials.
Abbott Laboratories (NYSE:ABT) shares jumped 1.6% after the medical device business exceeded expectations for quarterly earnings and upped the lower end of its outlook, as strong demand for medical procedures drove gadget sales.
Morgan Stanley’s (NYSE:MS) shares climbed 1% after Bloomberg reported that the banking behemoth expects to reduce approximately 50 investment banking jobs in Asia this week, with the most of the cutbacks directed at Hong Kong and China.
Tesla (NASDAQ:TSLA) shares climbed 0.7% after the EV maker filed a proxy statement demanding a shareholder vote on multiple proposals, including ratifying CEO Elon Musk’s 2018 remuneration, which a Delaware Court had disallowed.
Losers
JB Hunt (NASDAQ:JBHT) shares slumped 7.1% after the trucking company missed first-quarter revenue projections, hampered by a drop in revenue in its largest division and price challenges in its brokerage business.
Autodesk (NASDAQ:ADSK) shares slumped 5.8% after the software business said that its internal inquiry into its free cash flow and non-GAAP operating margin practices, which was first disclosed in early April, is still continuing.
ASML (AS:ASML) ADRs slumped 5% as the Dutch provider of equipment to computer chip manufacturers announced lower-than-expected first-quarter new bookings, but sales to China remained stable despite US-led restrictions.
Urban Outfitters (NASDAQ:URBN) shares slumped 4.9% after Jefferies downgraded the fashion store to ‘underperform’ from ‘hold’ due to declining foot traffic.
Travelers (NYSE:TRV) shares slumped 2.9% after the insurer revealed a substantial increase in catastrophic losses, net of reinsurance, to $712 million from $535 million the previous year, as a result of severe wind and hail storms in the central and eastern US.
Stock in focus
Eli Lilly (LLY) stock rose more than 2% in pre-market trade after the pharmaceutical announced its GLP-1 agonist Zepbound (tirzepatide) worked in two late-stage studies for obesity and OSA. Topline findings showed tirzepatide lowered the apnea-hypopnea index in studies, satisfying the primary objectives, according to Eli Lilly (LLY). Lilly (LLY) plans to publish the findings in a peer-reviewed journal and share it with authorities like the FDA in mid-2024.
Abbott Laboratories (ABT) shares fell ~1% before the opening bell. The firm surpassed Q1 top and bottom lines thanks to robust medical device sales. Abbott (ABT) medical devices quarterly revenue rose 14.2% to $4.45B. The segment’s top seller is the $1.5B FreeStyle Libre glucose monitor. Abbott’s (ABT) diagnostics sector was predicted to lose quarterly revenue owing to COVID-19 testing sales drop. Charts show ABT performance.
Travelers (TRV) stock fell more than 5% before market open after the insurer reported a Q1 top and bottom line shortfall due to wind and hail storm catastrophe losses. Travelers’ (TRV) Q1 core income per share fell from $7.01 in Q4 2023 to $4.69. The quarter had $712M pre-tax catastrophic losses, up from $535M a year earlier. “The combined ratio improved 1.5 points, notwithstanding elevated catastrophe activity, primarily in the central and eastern United States,” Travelers (TRV) CEO Alan Schnitzer said.
In pre-market trade, Tapestry (TPR) shares rose 1.5% while Capri (CPRI) declined more than 2%. After reports that the FTC was poised to prevent the $8.5B merger between the two fashion heavyweights, the actions were made. On Wednesday, the New York Times Dealbook reported that two sources said the FTC’s five commissioners will decide on whether to sue to prevent the acquisition. The Capitol Forum reported late Friday that the FTC was considering suing to halt the acquisition.
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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.