Premarket Movers: Fortinet Tumbles on Margin Miss, Sprouts Sinks on Weak Forecast
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US stock futures leaned lower before Thursday's open, with Nasdaq-100 contracts down 1.2%, S&P 500 futures off 0.4% and Dow futures down 0.3%. Traders were waiting on September's Personal Consumption Expenditures inflation report and third-quarter GDP, with economists looking for GDP growth of about 3.2%, a day after the Federal Reserve held rates steady.
Earnings Split the Market Before Thursday's Open
| Company | Move | Catalyst |
|---|---|---|
| CROX | +18% | Q3 earnings beat and strong Q4 guidance |
| GKOS | +17% | Q3 beat and raised full-year sales outlook |
| NCLH | +9.5% | Q3 earnings and revenue beat |
| CVNA | +8% | Surprise profit, revenue beat, SEC probe closed |
| CMG | +7% | Same-store sales topped estimates |
| DASH | +7% | Q3 beat and deal to buy Instacart parent Maplebear |
| EBAY | +6% | Revenue rose 14%, guidance raised |
| LITE | +5% | Reported Marvell acquisition talks |
| LLY | +4% | Q3 beat on Zepbound and Mounjaro sales |
| MSFT | +2% | Azure revenue grew 48% |
| FTNT | -25% | Gross margin missed estimates |
| SFM | -23% | Earnings, revenue and same-store sales missed |
| NOW | -20% | Adjusted EPS miss and soft subscription guidance |
| MRVL | -11% | Financing concerns over Lumentum deal talks |
| GOOGL | -11% | Search revenue miss and negative free cash flow |
| CAT | -9% | Construction segment sales miss |
| HOG | -5% | Revenue miss |
Big tech splits the market
Alphabet sank 11% before the bell. Core search revenue of $63.35B fell short of the $64.96B analysts expected, and the Google parent burned through cash, posting negative free cash flow of $9.07B. The report marked its first double miss on earnings and revenue since the fourth quarter of 2022.
Microsoft climbed 2% in premarket trading after beating on both lines. Revenue reached $92.28B against the $90.69B LSEG consensus, and Azure cloud revenue grew 48% year over year.
Fortinet tumbled 25% after third-quarter non-GAAP gross margin landed at 79.6%, under the 80.1% analysts polled by LSEG wanted. The cybersecurity selloff spread, dragging CrowdStrike and Palo Alto Networks lower alongside Zscaler.
ServiceNow sank 20% after adjusted EPS of $1 came in a penny under the LSEG consensus, and its fourth-quarter subscription revenue guidance also came in light.
Earnings reshuffle the winners
Crocs surged about 18% on a quarterly beat and upbeat current-quarter guidance, with the footwear maker posting adjusted EPS of $3.69 on $1.04B in revenue, ahead of the $3.31 and $1B FactSet consensus.
Glaukos surged 17% after the eye-care device maker topped third-quarter estimates and lifted its full-year sales outlook.
Sprouts Farmers Market sank 23% after missing on earnings, revenue and same-store sales, with a soft fourth-quarter profit forecast on top.
Norwegian Cruise Line jumped 9.5% on adjusted EPS of $1.12, beating the 93-cent FactSet estimate, with revenue of $2.95B also ahead.
Caterpillar slid 9% despite adjusted EPS of $7.20 on $20.68B in revenue, both above LSEG forecasts, because construction industries sales came up short.
Carvana climbed 8% after revenue and adjusted EBITDA beat expectations, and the used-car retailer noted the SEC ended its investigation with no enforcement action.
Chipotle Mexican Grill rose 7% after same-store sales grew 2.1%, topping the 1.5% FactSet consensus, with management guiding to faster growth this quarter.
eBay gained 6% as revenue rose 14% to $3.2B and gross merchandise volume increased 15%. The marketplace raised its full-year outlook.
Eli Lilly gained 4% on adjusted EPS of $7.48, well clear of the $6.26 LSEG consensus, helped by Zepbound and Mounjaro demand.
DoorDash rose 7% after a revenue and EBITDA beat and a deal to buy Instacart parent Maplebear for about $17B, an 11% premium. Maplebear gained 4.8% before being halted.
Marvell Technology dropped more than 11% following reports of advanced talks to buy Lumentum, which rose 5%. Investors flagged financing and near-term earnings risk.
Amazon and Intel report after the close, wrapping up a heavy week of hyperscaler and chipmaker results.
