Arista Networks, the cloud networking solutions company, exceeded expectations in the third quarter, leading to a nearly 10% increase in shares. The company reported earnings of $1.83 per share on $1.51 billion in revenue, surpassing the projected $1.58 in earnings per share on $1.48 billion in revenue. Pinterest also experienced a surge as their shares soared over 16% on stronger-than-expected third-quarter results. The social media company reported adjusted earnings of 28 cents per share and revenue of $763.2 million, showing an 11% increase from the previous year. Furthermore, Chewy, the pet food seller, gained 4% in premarket trading after being upgraded to overweight from equal weight Morgan Stanley. The upgrade was due to better-than-expected revenue growth, ongoing margin expansion, and a reasonable valuation.
Anheuser-Busch, the beer manufacturer, saw a 4% increase in shares following their earnings report of 86 cents per share, surpassing the expected 83 cents per share. However, revenue fell short at $15.57 billion compared to the expected $15.73 billion. Meanwhile, Caterpillar, the equipment manufacturer, experienced a 4.3% decline in shares as concerns arose about the possibility of fourth-quarter revenue falling below analysts’ expectations. Caterpillar stated that fourth-quarter revenue would only be slightly higher than the previous year’s quarter. JetBlue also faced disappointment as their stock fell over 7% due to third-quarter results that fell below analysts’ expectations. In contrast to the expected loss of 25 cents per share on $2.38 billion of revenue, the company reported a loss of 39 cents per share on $2.35 billion of revenue.
Wolfspeed, on the other hand, enjoyed a 12.5% increase in stock value thanks to its fiscal first-quarter results. Although the company reported a loss of 53 cents per share, it surpassed analysts’ expectations of 67 cents per share. However, revenue fell slightly short at $197 million compared to the expected $208 million. Chegg, the education technology company, saw a decrease of over 4% in shares despite reporting third-quarter earnings of 18 cents per share, exceeding analysts’ expectations of 17 cents per share. Similarly, revenue of $158 million surpassed consensus estimates of $152 million.
VF Corporation, the apparel and footwear company, experienced a slide of more than 6% after withdrawing its previous full-year 2024 guidance for earnings and revenue. The company also expressed concerns about the future performance of its shoe brand Vans due to a challenging wholesale environment in the United States. Tesla’s stock declined 1.4% in premarket trading amid concerns about softening demand for electric vehicles, particularly higher-priced models. BP, the oil company, also faced a 4% decline in shares after missing analysts’ estimates for its third-quarter earnings. BP reported underlying replacement cost profit of $3.293 billion, falling short of the expected $4.059 billion.
XPO, the freight transportation company, experienced a 1.7% increase in stock value after announcing stronger-than-expected third-quarter earnings. Following the positive earnings report, Jefferies upgraded the stock to buy from hold. AutoNation’s stock ticked over 2% higher after receiving an upgrade from JPMorgan to neutral from underweight. The upgrade was driven significant productivity improvements and a better balance sheet leverage. Globe Life, the insurance stock, climbed 1.1% after Wells Fargo upgraded the stock to overweight from equal weight, citing the potential benefits of decreasing GLP-1 drug prices in the long term.
Ferguson, the plumbing distributor, faced a decline of 3.8% after being downgraded to underperform from neutral Bank of America. The downgrade was influenced diminishing demand and downside risks to pricing. In addition, Lyft, the ride-hailing company, saw a drop of over 5% in shares as MoffettNathanson downgraded the company to sell from neutral. The downgrade was a result of rising insurance costs surpassing Lyft’s growth potential, potentially hindering the company’s profitability.