Premarket Trading Highlights
As the stock market gears up for the day, several companies are catching the spotlight in premarket trading. Here’s a rundown of the standout performers:
Delta Air Lines experienced a remarkable surge of 6% following impressive fourth-quarter earnings that exceeded expectations. The airline reported adjusted earnings of $1.85 per share, garnering revenues of $14.44 billion, significantly surpassing analyst predictions of $1.75 EPS and $14.18 billion in revenue. The company also provided optimistic guidance for the future.
Walgreens Boots Alliance saw its stock soar by 11% after announcing fiscal first-quarter results that exceeded forecasts. With adjusted earnings per share of 51 cents and revenue hitting $39.46 billion, Walgreens outperformed analyst expectations of 37 cents per share and $37.36 billion in revenue. The company has maintained its adjusted earnings guidance for fiscal 2025 within a range of $1.40 to $1.80 per share.
Constellation Energy shares climbed 9% following the confirmation of its acquisition of Calpine, a deal that involves both cash and stock. In addition, Constellation projected its full-year adjusted earnings per share will surpass analyst estimates.
Edison International, the Southern California utility company, faced a decline of 2.7% amid continuing deadly wildfires in Los Angeles. Though Edison has denied any connection to the wildfires, insurance companies have requested the preservation of evidence. This follows a significant drop of over 10% in Edison shares on Wednesday.
Allstate, Travelers, and Chubb experienced setbacks as projections for insured losses due to the Los Angeles wildfires escalated. JPMorgan estimates that this wildfire could become the most expensive in history, with damages potentially exceeding $20 billion. In premarket trading, Allstate shares fell by 5%.
On Semiconductor shares fell by 2.7% following Truist’s downgrade to hold from buy. The firm expressed caution regarding the stock until estimates are revised downward.
Archer Aviation and Joby Aviation saw their stocks drop by over 3% and 6%, respectively, after receiving downgrades from JPMorgan. The bank shifted Archer to neutral and Joby to underweight, noting their underperformance in the clean tech sector amid a market shift towards a more risk-on environment.
Sunrun shares rose by 4% following an upgrade from UBS, which changed its rating from neutral to buy, citing Sunrun’s emergence as a leading player in the stabilizing residential solar market.
Hims & Hers Health saw a decline of 3.2% after Citi downgraded the company’s rating from neutral to sell, indicating that investors may be overly optimistic regarding the revenue potential linked to GLP-1s.
Roku shares fell by 3.6% after MoffettNathanson downgraded the company from neutral to sell. The firm noted that investor expectations regarding a potential acquisition by a larger entity were overly optimistic and highlighted ongoing weakness in the advertising market that could affect profitability.
Sweetgreen shares gained 3.5% after Citi upgraded the stock from neutral to buy, with the firm suggesting that the company’s innovative robotic kitchen could enhance its financial performance.
Wayfair shares surged by 5% once the retailer announced its exit from the German market and a reduction of about 3% in its global workforce. These strategic decisions are part of Wayfair’s focus on new growth opportunities, including physical retail.
Capri Holdings, the parent company of luxury brands Jimmy Choo and Michael Kors, saw an uptick of 4.9% following two upgrades from Wall Street analysts. Citi upgraded shares to buy from neutral, while Wells Fargo raised its rating to overweight from equal weight.
