In this article, we will take a look at the 10 market movers to watch on Wednesday.
Notable stocks from the tech and communication services sectors, including Coupa Software Incorporated (NASDAQ:COUP), GitLab Inc. (NASDAQ:GTLB) and Pinterest, Inc. (NYSE:PINS), were spotted making big moves this morning.
Shares of Coupa Software Incorporated (NASDAQ:COUP) and GitLab Inc. (NASDAQ:GTLB) rose in pre-market trading Wednesday on better-than-expected quarterly performance. On the other hand, Pinterest, Inc. (NYSE:PINS) shares rallied after receiving an upgrade from Wolfe Research.
In addition, shares of Academy Sports and Outdoors, Inc. (NASDAQ:ASO) and United Airlines Holdings, Inc. (NASDAQ:UAL) also rose after the opening bell today. See the full article below to find what brought these stocks on the list of 10 market movers to watch on Wednesday.
10. Korn Ferry (NYSE:KFY)
Number of Hedge Fund Holders: 21
Shares of Korn Ferry (NYSE:KFY) slid over four percent this morning after missing profit expectations for its fiscal first quarter. The management consulting firm’s results were partly affected by a weak operating margin.
Korn Ferry (NYSE:KFY) earned $1.50 per share on an adjusted basis, up from $1.37 per share in the corresponding period of 2021. Revenue increased 19.6 percent versus last year to $703.1 million. Analysts, on average, were looking for earnings of $1.51 per share on revenue of $697 million.
The operating margin for the quarter slipped to 16 percent versus 17.3 percent in the same period last year.
Looking forward, Korn Ferry (NYSE:KFY) projected adjusted earnings in the range of $1.34 – $1.50 per share for its fiscal second quarter. The midpoint of the guidance missed the expectations of $1.50 per share.
9. Newell Brands Inc. (NASDAQ:NWL)
Number of Hedge Fund Holders: 22
Newell Brands Inc. (NASDAQ:NWL) slashed its financial outlook for the full year, citing weak orders and the negative effects of inflation on its business. As a result, its shares hit a new 52-week low in pre-market trading Wednesday.
The consumer and commercial products retailer now expects earnings of $1.56 – $1.70 per share for fiscal 2022, down from its previous projection of $1.79 – $1.86 per share. In addition, Newell Brands Inc. (NASDAQ:NWL) expects to generate revenue of $9.37 – $9.58 billion for the same period, below its earlier forecast of $9.76 – $9.98 billion.
Discussing the revised outlook, CEO of Newell Brands Inc. (NASDAQ:NWL), Ravi Saligram, said in a statement:
“Although we remain enthusiastic about the back-to-school season and continue to see solid growth in the Commercial business, we have experienced a significantly greater than expected pullback in retailer orders and continued inflationary pressures on the consumer. As a result of these developments and our more cautious posture for the balance of the year, we are adjusting our expectations for the second half of 2022.”
Like Newell Brands Inc. (NASDAQ:NWL), Coupa Software Incorporated (NASDAQ:COUP), GitLab Inc. (NASDAQ:GTLB) and Pinterest, Inc. (NYSE:PINS), were also on the list of 10 market movers to watch on Wednesday.
8. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 24
UiPath Inc. (NYSE:PATH) announced better-than-expected financial results for its fiscal second quarter. However, its sales projection for the current quarter disappointed investors, sending its shares to a new low 52-week low in pre-market trading Wednesday.
The software company reported an adjusted loss of 2 cents per share, narrower than analysts’ average estimate for a loss of 11 cents. Revenue came in at $242.2 million, while analysts expected UiPath Inc. (NYSE:PATH) to generate revenue of $230.7 million.
For the third quarter, UiPath Inc. (NYSE:PATH) expects revenue in the range of $243 – $245 million, well below the consensus of $269.6 million. UiPath Inc. (NYSE:PATH) blamed currency fluctuation and macroeconomic volatility for the weak guidance.
7. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 25
NIO Inc. (NYSE:NIO) is next on the list of 10 market movers to watch on Wednesday. The company’s shares fell to a nearly three-month low this morning following its mixed results for the second quarter.
The Chinese electric vehicle maker reported an adjusted loss of 20 cents per share, wider than analysts’ average estimate for a loss of 17 cents per share. In addition, NIO Inc. (NYSE:NIO) posted revenue of $1.54 billion, up 21.8 percent on a year-over-year basis and above the expectations of $1.43 billion.
Among other updates, NIO Inc. (NYSE:NIO) said it delivered 25,059 vehicles in Q2 versus 21,896 in the same quarter of the prior year. On the downside, its gross margin declined to 13 percent, from 18.6 percent in the year-ago period.
Moving forward, NIO Inc. (NYSE:NIO) expects vehicle deliveries in the range of 31,000 – 33,000 and revenue between $1.9 – $2 billion for the third quarter.
6. Guidewire Software, Inc. (NYSE:GWRE)
Number of Hedge Fund Holders: 28
Shares of Guidewire Software, Inc. (NYSE:GWRE) slightly moved down this morning despite beating profit and sales expectations for its fiscal fourth quarter. The software firm reported adjusted earnings of 3 cents per share, contrary to analysts’ expectations for a loss of 1 cent per share.
Revenue increased 7 percent versus last year to $244.6 million, ahead of the expectations of $229.6 million. Guidewire Software, Inc. (NYSE:GWRE) also disclosed its segment-wise sales results.
Revenue from the subscription and support segment climbed 34 percent to $93.6 million, while services revenue jumped 13 percent to $56.2 million in the quarter. On the downside, license revenue fell 14 percent to $94.8 million.
Moving forward, Guidewire Software, Inc. (NYSE:GWRE) expects to generate revenue in the range of $190 – $195 million for its fiscal first quarter and between $885 – $895 million for its fiscal year 2023.
5. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 35
Shares of United Airlines Holdings, Inc. (NASDAQ:UAL) rose nearly two percent after the opening bell on Wednesday after the Illinois-based airline lifted its sales outlook for the third quarter, citing a robust demand environment.
United Airlines Holdings, Inc. (NASDAQ:UAL) now expects Q3 revenue to increase 12 percent over the comparable period of 2019, up from its earlier projection calling for an 11 percent rise.
In addition, United Airlines Holdings, Inc. (NASDAQ:UAL) now expects Q3 adjusted operating margin to increase to 10.5 percent over the corresponding period of 2019, slightly higher than its previous forecast of a 10 percent gain.
4. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)
Number of Hedge Fund Holders: 30
Academy Sports and Outdoors, Inc. (NASDAQ:ASO) surpassed profit expectations for its fiscal second quarter and lifted its outlook for the full year. As a result, its shares rose over 6 percent before the opening bell on Wednesday.
The sporting goods store chain earned $2.30 on an adjusted basis, topping estimates of $2.08 per share. On the downside, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) posted revenue of $1.69 billion, marginally below the consensus of $1.71 billion.
Among other updates, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reported that it opened one new store during the quarter, bringing the total store count to 261. Overall, it intends to open nine new stores in the current fiscal year.
For the full year, Academy Sports and Outdoors, Inc. (NASDAQ:ASO) now anticipates adjusted earnings of $6.75 – $7.50 per share, up from its previous guidance of $6.55 – $7.25 per share.
3. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 36
Shares of GitLab Inc. (NASDAQ:GTLB) turned green before the opening bell on Wednesday after the software solutions provider posted its fiscal second-quarter results above analysts’ expectations.
GitLab Inc. (NASDAQ:GTLB) reported an adjusted loss of 15 cents per share, compared to a loss of 49 cents per share in the year-ago period. Revenue for the quarter climbed 74 percent versus last year to $101 million. The results were better than analysts’ average estimate for a loss of 23 cents per share on revenue of $94.04 million.
Looking forward, GitLab Inc. (NASDAQ:GTLB) guided for an adjusted loss of 15 – 16 cents per share and revenue between $105 – $106 million for the current quarter. In addition, it projected an adjusted loss of 64 – 67 cents per share and revenue of $411 – $414 million for the full year.
Speaking on the results, CFO of GitLab Inc. (NASDAQ:GTLB), Brian Robins, said:
“We are pleased to have delivered another strong quarter. Q2 FY23 resulted in 74% year-over-year revenue growth and our largest number of new base customers added ever in a single quarter. We also added a substantial number of new team members, and continue to hire across the organization.”
2. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 40
Shares of Coupa Software Incorporated (NASDAQ:COUP) rallied over 12 percent in pre-market trading Wednesday. The surge came after the IT firm surpassed financial expectations for its fiscal third quarter and issued a solid outlook for the full year.
Coupa Software Incorporated (NASDAQ:COUP) earned 20 cents per share on an adjusted basis, topping estimates of 9 cents per share. Revenue increased to $211.1 million, from $179.2 million in the corresponding period of 2021. Analysts were looking for revenue of $204.02 million.
For its fiscal year 2023, Coupa Software Incorporated (NASDAQ:COUP) anticipates adjusted earnings in the range of 37 – 44 cents per share and revenue between $838 – $844 million. This compares to the consensus of 26 cents per share for earnings and $840.31 million for revenue.
1. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 41
Shares of Pinterest, Inc. (NYSE:PINS) rose nearly five percent in pre-market trading Wednesday after Wolfe Research upgraded the visual discovery engine firm from “Peer Perform” to “Outperform.”
Wolfe Research analyst Deepak Mathivanan expressed optimism over the company’s user growth and monetization in the long term. Mathivanan also believes Pinterest, Inc. (NYSE:PINS) has multiple positive catalysts, such as margin growth and product roll-outs. He has a price target of $28 per share for Pinterest, Inc. (NYSE:PINS).
Earlier this year, investment management firm Harding Loevner also discussed Pinterest, Inc. (NYSE:PINS) in its first-quarter 2021 investor letter, stating:
“Other detractors within Communication Services included Pinterest (NYSE:PINS), which is finding it hard to sustain the extremely rapid growth they enjoyed over the past two years of pandemic lockdown and social distancing.”
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Disclosure: None. 10 Market Movers to Watch on Wednesday is originally published on Insider Monkey.
