A trader works at the post as shares of First Republic Bank trade on the floor of the New York Stock Exchange (NYSE) in New York City, March 16, 2023.
Brendan McDiarmid | Reuters
Check out the companies making headlines before the bell on Wednesday.
Enphase Energy — The solar inverter company fell 16% after reporting disappointing revenue guidance for the second quarter. On Tuesday, the company said its next quarter’s revenue will range from $700 to $750 million, compared to the $765.2 million expected by analysts surveyed by StreetAccount. Enphase reported adjusted earnings of $1.37 per share on revenue of $726 million, beating StreetAccount’s forecast for earnings of $1.21 per share on $724.4 in revenue. Rival Solaredge Technologies shares fell 5.8 percent.
Boeing – Shares of Boeing rose 3.7% in premarket trading after the company reported its latest quarterly results and said it would ramp up production of the 737 MAX later this year despite the production problem. The company reported an adjusted loss of $1.27 per share and $17.92 billion in revenue. Analysts polled by Refinitiv had expected a loss per share of $1.07 on $17.57 billion in revenue.
Activision Blizzard Shares of Activision Blizzard fell about 10.4% in the primary market after a British regulator blocked Microsoft’s purchase of the video game publisher. “The final decision to block the transaction follows the failure of Microsoft’s proposed solution to effectively address concerns in the cloud gaming sector,” the UK Competition and Markets Authority wrote.
First Republic Bank – The battered regional bank stock fell 10% before the bell, with the potential to weigh once again on the broader banking sector. First Republic reported Monday that its deposits fell 40% to $104.5 billion in the first quarter, and the stock lost nearly half its value on Tuesday.
PacWest Bancorp Shares jumped 14% in early morning trade after PacWest said it had seen an influx of deposits over the past month. The regional bank said deposits fell more than 16% during the first quarter to nearly $28.2 billion, but it has added about $1.8 billion in deposits since March 20, when it updated investors. It saw deposits of $700 million in April. On Tuesday, PacWest also reported a net loss of $1.21 billion for the quarter, largely due to goodwill impairment charges. Regional bank Western Alliance Bancorp also rose on Wednesday before the bell.
Microsoft – Shares rose 8% after Microsoft reported its third-quarter financial results and issued quarterly guidance that beat expectations. The technology company reported earnings of $2.45 per share on revenue of $52.86 billion. Analysts polled by Refinitiv had forecast earnings per share of $2.23 on revenue of $51.02 billion. Additionally, Microsoft Chief Financial Officer Amy Hood issued guidance for the fourth quarter of $54.85 billion to $55.85 billion in revenue. The middle of the range is greater than the consensus estimate of $54.84 billion. Separately, the United Kingdom’s Competition and Markets Authority on Wednesday blocked Microsoft’s acquisition of video game company Activision Blizzard, weighing on technology stocks.
Alphabet — Shares of Alphabet were flat before the bell even after parent Google beat earnings and revenue forecasts for the most recent quarter and announced a $70 billion share buyback plan. Advertising revenue beat estimates but was down from a year ago.
Chipotle Mexican Grill Shares of Chipotle Mexican Grill gained more than 7% in premarket trading after the burrito chain posted its highest and lowest score last quarter. During the period, the company benefited from strong growth in same-store sales and said traffic grew despite higher listing prices.
ServiceNow Shares of the digital workflow company rose 3.1% after falling more than 6% during Tuesday’s session, when Infosys announced its collaboration with ServiceNow. ServiceNow will report its quarterly earnings Wednesday after the bell.
Amazon — The e-commerce giant saw its stock rise 2.8% in pre-market trading. The gains came after tech-related giant Microsoft reported quarterly earnings that beat expectations, boosting sentiment toward Amazon. The company announces numbers Thursday after the bell.
Thermo Fisher Scientific Shares fell 3.9% after Thermo Fisher Scientific You reported first quarter earnings which was in line with expectations. The Massachusetts-based supplier of scientific instruments reported adjusted earnings per share of $5.03, in line with StreetAccount’s estimate. Thermo Fisher Scientific beat revenue expectations, reporting revenue of $10.71 billion, larger than estimates of $10.65 billion.
Coinbase – The cryptocurrency exchange added 5% in the initial market along with a jump in cryptocurrency prices, including Bitcoins gaining 5%. HC Wainwright also began covering Coinbase with a Buy rating and a price target of $75, which is up 34% from Tuesday’s close.
— CNBC’s Sarah Min, Samantha Sobin, Alex Haring, Hakyung Kim, Yoon Lee and Michelle Fox Theobald contributed reporting.
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