Stocks Making the Biggest Moves: Peloton, Novavax, and Kohl’s
In premarket trading today, several companies are making headlines with significant moves in their stock prices.
Peloton, the exercise bike company, experienced a dramatic drop of over 27% after reporting its quarterly results. The company reported a loss of 68 cents per share on $642.1 million in revenue, whereas analysts had predicted a loss of 38 cents per share and $639 million in revenue.
On the other hand, Novavax saw its shares rise by 2.1% in early trading. The increase comes after the biotech company announced that its new Covid vaccine is effective against the Eris variant of the virus. The stock had already surged over 13% the previous day.
In addition, Kohl’s stock added 1.5% after beating expectations for the second quarter. The company reported adjusted earnings of 52 cents per share, surpassing the analyst consensus of 22 cents per share. However, revenue came in slightly lower than expected at $3.68 billion, compared to a forecast of $3.69 billion.
Investors can find a full list of the companies making moves in premarket trading by following the link provided.
Kohl’s Rises on Earnings Beat
Shares of Kohl’s, the retailer, increased by over 2% in premarket trading following the announcement that it surpassed Wall Street’s earnings expectations. The company reported adjusted earnings of 52 cents per share, surpassing the Refinitiv consensus of 22 cents per share. While revenue was slightly lower than expected at $3.68 billion compared to a forecast of $3.69 billion, the CEO mentioned that Kohl’s maintained strong sales momentum in Sephora during the quarter and reaffirmed the chain’s 2023 guidance.
Peloton Tumbles on Wider-Than-Expected Loss and Disappointing Guidance
Peloton Interactive saw its shares plummet by more than 16% after reporting a wider-than-expected loss and offering disappointing revenue guidance for its fiscal first quarter. The company reported a loss of 68 cents per share, missing the analyst consensus of a 38-cent loss per share. Revenues came in at $642.1 million, slightly exceeding the expected $639.9 million. Peloton also provided guidance for the first quarter, expecting revenues to range between $580 million and $600 million, significantly below Wall Street’s projection of $656 million. The company also mentioned that the costs associated with the recent bike recall were higher than expected, and it expects additional related expenses in the future.
Foot Locker Tumbles on Sales Decline and Dividend Pause
Foot Locker’s shares dropped by 18% in premarket trading after the retailer reported a year-over-year sales decline of nearly 10% for the second quarter. Additionally, the company suspended its quarterly dividend. Foot Locker’s CEO, Mary Dillon, stated that they observed a softening in trends in July and are adjusting their 2023 outlook to better compete for price-sensitive consumers while making strategic investments according to their Lace Up plan.
Nvidia, Retailers Set to Report Earnings on Wednesday
Several prominent stocks, including Nvidia, Peloton, Foot Locker, Kohl’s, and Abercrombie & Fitch, are scheduled to report earnings today. Nvidia, in particular, has attracted significant attention as the options market implies a 3% move in its shares following the release of its earnings report after the market closes. Analysts have raised their EPS estimates for Nvidia, with HSBC and Jeffries projecting a target range of $550 to $750 per share. Despite a nearly 3% fall in Tuesday’s session, Nvidia’s stock has surged more than 212% this year.
Sports Retailers Made Record-Setting Moves on Tuesday
Athletic retail stocks, including Dick’s Sporting Goods and Nike, experienced notable losses in Tuesday’s session. Dick’s saw a drop of over 24%, marking its worst performance since going public more than two decades ago. The sell-off was triggered by the company’s poor earnings report. Nike, on the other hand, recorded its ninth straight down day, marking the longest losing streak the company has ever seen.
Urban Outfitters, La-Z-Boy Diverge After Hours Following Earnings Reports
In extended trading, Urban Outfitters rose by almost 6% after reporting earnings that exceeded analysts’ expectations. Conversely, La-Z-Boy dropped nearly 2% as management commentary about challenging furniture sales overshadowed the company’s strong quarterly numbers.
Stock Futures Near Flat
Stock futures were relatively unchanged shortly after 6 p.m. ET, with futures tied to the Dow, S&P 500, and Nasdaq 100 all within 0.1% of their respective flatlines.
Overall, it has been a better-than-expected earnings season so far, with about four-fifths of S&P 500 companies surpassing analyst expectations.
Sources:
– Stocks making the biggest moves premarket
– Kohl’s rises on earnings beat
– Peloton tumbles on wider-than-expected loss, disappointing guidance
– Foot Locker tumbles on sales decline and dividend pause
– How Nvidia shares could trade
– Europe stocks open higher
– Nvidia, retailers set to report earnings on Wednesday
– Sports retailers made record-setting moves on Tuesday
– Urban Outfitters, La-Z-Boy diverge after hours following earnings reports
– Stock futures are near flat.