Stock futures went down a little on Friday while Wall Street looked over a number of important earnings reports and waited for new U.S. inflation data to come out.
On Friday, these stocks were about to move:
Dell Technologies reported more money than expected in the first quarter. This was due to strong demand for servers that use AI and improvement in the business selling personal computers. In premarket trading, however, the stock was down 15% after the company talked about new pressures on margins. Yvonne McGill, the company’s chief financial officer, told Barron’s that the company expects some margin pressure this quarter because of rising costs, such as higher NAND and DRAM memory prices, and more competition for business from large enterprises.
Donald Trump’s social media company, Truth Social, was down 5.4% after he was found guilty on all 34 counts of falsifying business records in a hush-money trial. Trump Media & Technology Group runs Truth Social.
Zscaler, a cybersecurity company, said that its first-quarter revenue of $553.2 million, up from $482.3 million the previous year, was better than expected. It also said that its billings rose 30% to $628 million, higher than the $584 million that was expected. Analysts had predicted 66 cents in adjusted earnings per share for the period. Instead, the company made 88 cents per share. Even Zscaler’s prediction for the fourth quarter was better than what was expected. Shares went up 17%.
MongoDB’s stock dropped 25% after the data service provider gave bad predictions for the second quarter and the fiscal year. Dev Ittycheria, CEO, said that the company was getting new customers and sales growth more slowly than expected. He said that this would have “downstream impact for the remainder of fiscal 2025.”
Marvell Technology made $1.16 billion in the first quarter, which is 12% less than the same time last year but more than the $1.15 billion that was expected. Stronger-than-expected demand for AI helped the chip maker make more money. During that time, adjusted earnings were 24 cents per share, which was what Wall Street expected. Marvell thinks that it will make $1.25 billion in sales in the second quarter, give or take 5%. Analysts thought it would be $1.22 billion. The stock went down 4.9%.
Gap’s first-quarter earnings of 41 cents a share beat estimates of 14 cents. Revenue rose 3% to $3.4 billion, and same-store sales jumped 3%, better than the 4% drop the previous year and better than analysts’ predictions of a 1.1% rise. The stock price went up 23%. Gap also raised its expectations for the fiscal year that ends in February.
Even though Ulta Beauty cut its fiscal-year guidance, the stock price was still going up 7.1%. After saying before that sales would be between $11.7 billion and $11.8 billion, the company now says they think sales will be between $11.5 billion and $11.6 billion. CEO Dave Kimbell said, “I remain confident in our differentiated model, the resilience of the beauty category, and our ability to execute against our plans. However, we have changed our annual guidance because we expect the dynamics we faced in the first quarter to continue for the balance of the year.”
Nordstrom had a bigger-than-expected loss in the first quarter, and the company’s stock was going down 7.4%. Their $3.34 billion in sales was more than the $3.18 billion they made the previous year and more than the $3.19 billion that was expected.
Costco Wholesale’s earnings for the fiscal third quarter were better than expected, and sales at the same stores rose 6.6% during the quarter. Comparable sales on the Internet went up 21%. Costco stock was down 1.7% before the market opened.
In the first quarter of 2018, Ambarella’s revenue was 12% lower than the same time last year. However, the stock price went up 18% after CEO Fermi Wang said that the chip company was “seeing early signs for the proliferation of AI inferencing at the network edge,” which was supported by the wide range of customer engagements and should lead to more revenue growth.
SentinelOne dropped 14% after the cybersecurity company lowered its revenue forecast for the fiscal year from $812 million to $818 million to a range of $808 million to $815 million.
PagerDuty had a mixed first quarter, but billings were better than expected. Howard Wilson, the chief financial officer of the software company, told Barron’s in an interview that the company’s annual recurring revenue levelled off at 10% in the third quarter. PagerDuty still thinks that this measure will show a small increase in speed in the second half of the fiscal year. The price of the stock went up 11%.
