TERADAT SANTIVIVUT
Stock futures were mixed on Wednesday as investors awaited the Federal Reserve’s interest rate decision.
Here are some of Wednesday’s biggest stock movers:
Biggest stock gainers
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Pinterest (NYSE:PINS) shares surged over 16% following the release of its Q1 earnings report, which exceeded market expectations. The company reported remarkable top-line growth of nearly 23% Y/Y. Global monthly active users also increased by 12% to reach 518M, while the average revenue per user (ARPU) grew by 10% globally to $1.46. Additionally, the company provided an upbeat revenue outlook for Q2 in the range of $835M to $850M, representing 18–20% growth Y/Y, above the consensus of $827.09M.
Biggest stock losers
- CVS Health (NYSE:CVS) shares dropped by 18% after reporting lower-than-expected Q1 earnings and revising its full-year outlook below consensus. The company cited ongoing medical cost trends as the reason for the revision. It expects the pressure on medical utilization to persist, particularly affecting its Health Care Benefits segment. As a result, CVS lowered its 2024 adjusted EPS outlook to at least $7.00 from the previous expectation of at least $8.30, below the consensus estimate of $8.27.
- Starbucks (NASDAQ:SBUX) lost more than 12% after falling short of consensus in its FQ2 results. Global comparable store sales declined by 4%, significantly below the consensus estimate of a 1.5% increase. Average ticket sales rose by 2%, but the overall transaction count decreased by 6% during the quarter. Comparable sales in North America fell by 3% compared to the consensus estimate of a 2.1% increase, while international comparable sales dropped by 6%, far below the expected 1.4% increase. In China, comparable store sales declined by 11%, significantly below the consensus estimate of a 1.6% decrease.
- Despite exceeding market expectations in Q1, Advanced Micro Devices (NASDAQ:AMD) shares fell about 6%, as the semiconductor firm’s revenue guidance was largely in line with expectations. The company’s gaming revenue experienced a significant decline of 48% Y/Y, while revenue from the embedded segment fell by 46% Y/Y. AMD expects Q2 sales to be in the range of $5.4B to $6B, with the mid-point aligning with the consensus estimate of $5.69B.
- Super Micro Computer (NASDAQ:SMCI) shares dropped by as much as 10% following mixed FQ3 results, despite a 200% Y/Y surge in revenue. The company provided a strong outlook for FQ4, expecting net sales of $5.1B to $5.5B, above the consensus estimate of $4.86B, and non-GAAP diluted EPS between $7.62 and $8.42 vs. the consensus of $6.96. For FY2024, SMCI raised its revenue guidance from a range of $14.3B to $14.7B to a range of $14.7B to $15.1B, surpassing the consensus estimate of $14.59B, and expects non-GAAP diluted EPS in the range of $23.29 to $24.09, compared to the consensus estimate of $21.85.
