Micron, Apple, Nvidia, Chewy, Sunnova, etc. | Private Equity Weekly
Take a look at the companies making headlines in midday trading. Micron Technology — The semiconductor maker’s second-quarter profit and revenue beat analysts’ expectations, sending its shares up 14%. Micron Technology reported earnings of 42 cents per share on revenue of $5.82 billion. Analysts polled by London Stock Exchange Group (LSEG) expected a loss of 25 cents per share, while analysts expected revenue of $5.35 billion. The company also expects third-quarter earnings and revenue to top consensus estimates. Apple — Technology stocks fell 3.2% on news that the Justice Department is suing Apple. Regulators said the iPhone ecosystem was monopolistic and anti-competitive in multiple business areas. Astera Labs — a seller of data center connectivity chips — rose 14.1%. That sent the company up 72% on Wednesday, its first day trading on Nasdaq. Li Auto — The Chinese electric car maker’s U.S.-listed shares fell 7.5% on weak first-quarter delivery guidance. Lee told investors that the midpoint is expected to be 77,000 units, down from a previous estimate of 101,500 units. Chewy — Shares of the pet supplies retailer fell 6% on disappointing first-quarter guidance. Chewy said it expects revenue for the current quarter to be between $2.84 billion and $2.86 billion. Analysts polled by London Stock Exchange Group (LSEG) expected revenue of $2.89 billion. Five Points Below – Shares of the discount retailer are under pressure, falling 14% in a day after the company reported fourth-quarter earnings and revenue that missed expectations. Five Below also issued a soft outlook for current quarter and full-year revenue and profit. Guess what – the clothing designer’s latest earnings beat estimates, sending shares soaring 23.1%. Guess reported adjusted earnings of $2.01 per share on revenue of $891 million, while analysts polled by LSEG expected earnings of $1.56 per share on revenue of $856 million. Darden Restaurant, the parent company of Olive Garden and LongHorn Steakhouse, fell 5.7% after revenue missed expectations. Daren reported revenue of $2.97 billion, compared with StreetAccount’s forecast of $3.02 billion. Earnings per share were $2.62, in line with expectations. Paramount Global — The media and entertainment stock fell 4.6% after CNBC’s David Faber reported that the company has no plans to sell its studios and other assets as it continues to discuss a sale. The update throws cold water on a Wall Street Journal report on Thursday that Apollo Global Management had made an $11 billion bid for Paramount Studios. The report sent the stock up 11% on Wednesday, but gave back some of those gains on Thursday. Accenture — The consultancy’s second-quarter revenue fell short of analysts’ expectations, sending its shares down 8.1%. Accenture reported earnings of $15.8 billion, below the $15.85 billion forecast by analysts polled by StreetAccount. Revenue guidance for the current quarter also fell short of analysts’ expectations. FactSet — The research platform fell 6.7% after fiscal second-quarter revenue missed estimates. FactSet’s revenue of $545.9 million was below the $546.8 million consensus estimate of analysts polled by StreetAccount. On the other hand, diluted earnings per share beat estimates, coming in at $4.22, compared with Wall Street forecasts of $3.90. Illumina — The life sciences stock jumped 3.5% after an EU court adviser said regulators exceeded their powers by blocking Illumina’s acquisition of healthcare company Grail. Broadcom — Shares of the chipmaker rose 8.1% on an upgrade to outperform by TD Cowen. TD Cowen said the stock could rise further due to its artificial intelligence business. Revolve Group — Shares of the fashion retailer rose 3% after TD Cowen upgraded the stock to outperform from market. The company said Revolve should return to growth after a tough year that required price cuts. Nvidia – Shares of the chipmaker rose more than 1% after TD Cowen reiterated an outperform rating on the stock and raised its price target, citing the company’s “compute leadership across the stack” following the launch of its Blackwell platform. Sunnova — Residential solar stocks rose 12.2% after Goldman Sachs said it maintained a buy rating. Goldman Sachs believes the stock could now rise nearly 200% after this year’s slump. Nextracker — Shares of Nextracker rose 2% after Baird initiated coverage on the solar tracker technology company with an outperform rating. The Wall Street firm said Nextracker is a compelling investment with a “simplified business model, healthy balance sheet and differentiated technology.” —CNBC’s Lisa Kailai Han, Tanaya Macheel, Sarah Min, Jesse Pound and Sara Salinas contributed reporting
