Why Tesla, SolarCity, Adobe, and Two Other Stocks Are Trending Today

Adobe Drops on Earnings

Adobe Systems Incorporated (NASDAQ:ADBE) shares are 5% in the red in pre-market after the tech company reported fiscal second quarter earnings of $0.71 per share on revenue of $1.4 billion, beating the consensus estimates by $0.03 per share on the bottom-line and meeting revenue estimates. One reason for the stock drop could be Adobe’s guidance. Adobe management sees third quarter revenue coming in at $1.42-$1.47 billion versus analyst estimates of $1.47 billion. For the full year, Adobe expects EPS of $2.80 versus analyst estimates of $2.84 per share. The company also expects full year revenue of $5.8 billion, which is slightly lower than the consensus of $5.83 billion. At the end of March, 63 funds tracked by us were long Adobe Systems Incorporated (NASDAQ:ADBE), up by 17 funds from the previous quarter.

Covenant Trims Guidance

Covenant Transportation Group, Inc. (NASDAQ:CVTI) became the second trucking company to lower guidance, with Covenant management expecting EPS of $0.17-$0.23 for the second quarter, versus the company’s earlier expectation of $0.28-$0.33 per share. The company cited difficult freight market conditions, higher net fuel cost per mile, and higher deprecation expenses as reasons for the guidance cut. Yesterday, Werner Enterprises, Inc. (NASDAQ:WERN) also cut its guidance due to similar factors plus labor wage difficulties. Eight funds tracked by us amassed $43.48 million worth of Covenant Transportation Group, Inc. (NASDAQ:CVTI)’s stock, which accounted for 9.90% of the float on March 31, versus 13 funds and $37.56 million, respectively, on December 31.

FedEx Reports Earnings

FedEx Corporation (NYSE:FDX) reported earnings of $3.30 per share on revenue of $13 billion for its fiscal fourth quarter, exceeding the consensus by $0.02 per share and $220 million. Operating margin rose 120 basis points to 11.7%, while the company’s express segment reported an operating income of $757 million. Management sees fiscal 2017 EPS coming in the range of $11.75 to $12.25, which neatly envelops the average analyst estimate of $12.05 per share. For full fiscal 2016, the company earned $10.80 in adjusted diluted EPS on revenue of $50.4 billion.  45 elite funds had a bullish position in FedEx Corporation (NYSE:FDX) at the end of March, down by two from the previous quarter.

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