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A trader works at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, March 16, 2023.
Brendan McDermid | Reuters
Check out the companies making headlines before the bell on Wednesday.
Enphase Energy — The solar inverter company slid 16% after reporting disappointing revenue guidance for the second quarter. The company said Tuesday its upcoming quarterly revenue will range from $700 million to $750 million, compared to the expected $765.2 million from analysts surveyed by StreetAccount. Enphase reported adjusted earnings of $1.37 per share on $726 million in revenue, beating StreetAccount forecasts of earnings of $1.21 per share on $724.4 in revenue. Shares of rival Solaredge Technologies dropped 5.8%.
Boeing — Boeing shares rose 3.7% in premarket trading after the company posted its latest quarterly results and said it would increase production of 737 Max planes later this year despite a production issue. The company reported an adjusted loss of $1.27 per share and $17.92 billion in revenue. Analysts polled by Refinitiv anticipated a loss per share of $1.07 on $17.57 billion in revenue.
Activision Blizzard — Activision Blizzard shares dropped about 10.4% in the premarket after a UK regulator blocked Microsoft’s purchase of the video game publisher. “The final decision to prevent the deal comes after Microsoft’s proposed solution failed to effectively address the concerns in the cloud gaming sector,” wrote the UK’s Competition and Markets Authority.
First Republic Bank — The battered regional bank stock dropped 10% before the bell, with the potential to again weigh on the broader banking sector. First Republic on Monday reported that its deposits dropped 40% to $104.5 billion in the first quarter, and the stock lost nearly half its value Tuesday.
PacWest Bancorp — Shares jumped 14% in early morning trading after PacWest said it has seen deposit inflows over the past month. The regional bank said deposits fell more than 16% during the first quarter to roughly $28.2 billion, but that it has added about $1.8 billion in deposits since March 20, when it last updated investors. It saw $700 million in deposits in April. On Tuesday, PacWest also reported a net loss of $1.21 billion for the quarter, due largely to a goodwill impairment charge. Regional bank Western Alliance Bancorp also rose Wednesday before the bell.
Microsoft — Shares advanced 8% after Microsoft reported fiscal third-quarter results and issued quarterly guidance that topped expectations. The tech firm reported earnings of $2.45 per share on revenue of $52.86 billion. Analysts polled by Refinitiv forecasted per-share earnings of $2.23 on revenue of $51.02 billion. Additionally, Microsoft finance chief Amy Hood issued fourth-quarter guidance of $54.85 billion to $55.85 billion in revenue. The middle of the range is greater than the $54.84 billion consensus estimate. Separately, the UK’s Competition and Markets Authority on Wednesday blocked Microsoft’s acquisition of video game firm Activision Blizzard, weighing on the tech stock.
Alphabet — Alphabet shares were flat before the bell even after the Google parent beat both earnings and revenue expectations for the recent quarter and announced a $70 billion share buyback plan. Ad revenue beat estimates but fell from a year ago.
Chipotle Mexican Grill — Shares of Chipotle Mexican Grill gained more than 7% in premarket trading after the burrito chain posted a top and bottom line beat for the most recent quarter. The company benefited during the period from strong same-store sales growth and said traffic grew despite a hike in menu prices.
ServiceNow — The digital workflow company’s shares gained 3.1% after falling more than 6% during Tuesday’s session, when Infosys announced its collaboration with ServiceNow. ServiceNow will be announcing its quarterly earnings Wednesday after the bell.
Amazon — The e-commerce giant saw its stock climb 2.8% in premarket trading. The gain came after fellow tech-related giant Microsoft reported quarterly earnings that exceeded expectations, boosting sentiment for Amazon. The company reports numbers Thursday after the bell.
Thermo Fisher Scientific — Shares fell 3.9% after Thermo Fisher Scientific reported first-quarter earnings that came in line with expectations. The Massachusetts-based supplier of scientific instruments reported adjusted per-share earnings of $5.03, in line with a StreetAccount estimate. Thermo Fisher Scientific did beat revenue expectations, reporting revenue of $10.71 billion, greater than the $10.65 billion estimate.
Coinbase — The cryptocurrency exchange added 5% in the premarket alongside a jump in cryptocurrency prices, including Bitcoins 5% rise. H.C. Wainwright also initiated coverage of Coinbase with a buy rating and $75 price target, which implies 34% upside from Tuesday’s close.
— CNBC’s Sarah Min, Samantha Subin, Alex Harring, Hakyung Kim, Yun Li and Michelle Fox Theobald contributed reporting.
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