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Stock futures were mixed on Friday after the release of the PCE price index, the Federal Reserve’s preferred inflation gauge, showed slower-than-expected growth.
Here are some of Friday’s biggest stock movers:
Biggest stock gainers
- Intel (NASDAQ:INTC) shares surged 6% after reports surfaced that the company is exploring strategic options for its foundry business, including a potential split or the scrapping of factory projects, as it grapples with mounting losses. Advised by Morgan Stanley and Goldman Sachs, Intel is exploring these moves, which could also involve mergers and acquisitions. While discussions are in the early stages, decisions are expected to be reviewed at a board meeting in September. A split of the foundry unit would mark a major strategic shift for CEO Pat Gelsinger, though initial steps may include delaying expansion plans.
- MongoDB (NASDAQ:MDB) surged over 14% following a strong Q2 earnings report, which highlighted the benefits of robust new workload acquisition and better-than-expected Atlas consumption trends. The company anticipates Q3 revenue between $493M and $497M, with a midpoint of $495M, exceeding the consensus estimate of $479.2M. MongoDB also expects non-GAAP EPS of $0.65 to $0.68 (midpoint $0.665) for Q3, compared to the consensus estimate of $0.61. For FY2025, the company forecasts revenue between $1.92B and $1.93B (midpoint $1.925B), surpassing the consensus estimate of $1.90B and its previous guidance of $1.88B to $1.90B. Additionally, MongoDB expects non-GAAP EPS for the year to range from $2.33 to $2.47 (midpoint $2.40), exceeding the consensus estimate of $2.27.
- Dell Technologies (NYSE:DELL) shares increased by 3% after surpassing expectations in its Q2 results, driven by the strong performance of its Infrastructure Solutions Group. This segment, which includes AI-optimized servers and networking hardware, generated $11.65B in revenue for the quarter, marking 38% Y/Y growth. Notably, servers and networking revenue surged by 80% to $7.67B, significantly exceeding the consensus of $5.96B.
- Shares of Marvell Technology (NASDAQ:MRVL) soared more than 7% after the semiconductor infrastructure company posted FQ2 results and guidance that exceeded consensus estimates. Despite a 5% Y/Y decline in overall revenue, Marvell’s data center segment nearly doubled its revenue, reaching $880.9M compared to $459.8M in the previous year. For Q3, Marvell expects adjusted EPS to range from $0.35 to $0.45, with a midpoint of $0.40, surpassing the estimate of $0.38. The company also forecasts revenue between $1.45B and $1.46B, above the consensus estimate of $1.4B. Additionally, Marvell anticipates a gross margin of 61% for the quarter, in line with estimates.
Biggest stock losers
- Ulta Beauty (NASDAQ:ULTA) shares plunged about 7% after the company underperformed in Q2 and lowered its outlook. The company now expects FY2024 net sales to range between $11B and $11.2B, down from its previous forecast of $11.5B to $11.6B. The midpoint of this range, $11.1B, falls below the consensus estimate of $11.5B. Ulta also revised its earnings per share guidance to $22.60 to $23.50, down from the prior range of $25.20 to $26.00, with the new midpoint of $23.05 coming in below the $25.06 consensus estimate. Additionally, the company now anticipates comparable sales for the year to decline by 2% to 0%, a significant downward revision from its earlier guidance of 2% to 3% growth.
- Lululemon Athletica (NASDAQ:LULU) shares fell over 2%, erasing premarket gains of more than 5% following the release of a mixed Q2 performance and outlook. Despite delivering better-than-expected Q2 profits and reporting improved gross and operating margins, the company revised its FY2025 revenue guidance downward to a range of $10.375B to $10.475B, compared to the previous range of $10.7B to $10.8B, below the consensus estimate of $10.62B. The company also adjusted its EPS guidance to $13.95 to $14.15, down from the earlier range of $14.27 to $14.47 (previously raised last quarter from $14.00 to $14.20), closely aligning with the $14.01 consensus estimate. Additionally, Lululemon provided Q3 EPS guidance of $2.68 to $2.73 on revenue of $2.34B to $2.365B, which also falls short of the consensus estimate of $2.73 per share on $2.41B in sales.
- Despite reporting better-than-expected FQ1 results, Elastic’s (NYSE:ESTC) shares tumbled 27% after the company lowered its annual revenue guidance, leading to strong reactions from analysts. BofA downgraded the stock from Buy to Neutral, slashing the price target from $140 to $94 due to identified execution issues that may take time to resolve. Baird also downgraded Elastic to Neutral, citing sales execution missteps that resulted in significant shortfalls in FQ1 customer commitments. The company now projects FY2025 revenue between $1.436B and $1.444B, down from the previous range of $1.468B to $1.48B and below the consensus of $1.48B.
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