Before the bell, take a look at the businesses that are in the news.
Delta Airlines — After the airline released a projection for lower-than-expected sales growth in the current quarter, shares fell 9%. In the second quarter, net income decreased by 30% even while revenue hit all-time highs.
Restaurants Darden — Following a downgrade from Jefferies to underperform from hold, the parent company of Olive Garden fell 1.6%. The company may face challenges to its short-term fundamentals.
The Alcoa Following the release of preliminary second-quarter earnings that exceeded expectations, the aluminium producer’s shares increased 2.7%. Alcoa stated that it expects adjusted earnings between 8 and 19 cents per share, which is higher than the 7 cents per share predicted by FactSet’s panel of analysts. Overachieving the $2.83 billion expert expectation, revenue is expected to be in the range of $2.85 billion to $2.925 billion.
Spotify: After Jefferies upgraded the stock to buy from hold and identified it as a top option in the music sector, shares of the audio streamer increased by over 2%. The investing company claimed that in the upcoming years, Spotify has flexibility to raise pricing steadily. MicroStrategy: Following the announcement of a 10-for-1 stock split, shares of the bitcoin development business increased by more than 4%.
Costco Wholesale: Following the wholesale club’s first membership fee increase since 2017, Costco shares increased by over 3%. The corporation raised the price of its higher-tier plan by $10 and the cost of its annual membership by $5 in the United States and Canada.
Pfizer: The drugmaker’s shares increased by about 3% after it announced that it will keep working on the once-daily version of its weight loss pill in light of “encouraging” evidence from an early-stage trial. It also wants to carry out tests comparing the drug’s various doses in the second half of the year.
PepsiCo: The beverage and snack company reported a minor revenue miss for the second quarter and reduced its revenue projection for the entire year. This resulted in a 2% decline in shares. Pepsi currently projects growth in organic revenue 4% on average, as opposed to its prior prediction of 4% or more. It exceeded forecasts with its quarterly adjusted earnings per share.
On Semiconductor: The company’s shares experienced a 3% decline. Due to top-line headwind concerns that limit the potential for multiple expansion, Morgan Stanley downgraded the shares to underweight.
WD-40: The company’s shares increased by 10% as its fiscal third-quarter earnings exceeded expectations. With earnings per share of $1.46 and revenue of $155 million, the manufacturer of metal lubricants exceeded Wall Street’s projections on both the top and bottom lines.
Source (CNBC)
