Several companies are making headlines in premarket trading, with Walmart falling 4.7% after reporting adjusted earnings-per-share guidance for the year that was lighter than analysts expected. However, Walmart’s adjusted earnings of $1.53 per share topped the $1.52 expected from analysts, and revenue was $160.8 billion, versus estimates of $159.72 billion.
Meanwhile, Cisco Systems saw its shares tumble nearly 11% during premarket trading after the company’s earnings guidance for the current quarter fell below analyst estimates. The outlook was blamed on a slowdown in new product orders, leading the company to reduce its full-year forecast for revenue.
Palo Alto Networks also experienced a decline, with shares sliding more than 6% after issuing a weaker-than-expected billings forecast for the current quarter and full year.
Shares of the green hydrogen company Plug Power dropped 4.6% after Citi downgraded them to neutral from buy, citing near-term issues such as sub-par execution and liquidity challenges as headwinds for the stock.
Tencent Music Entertainment saw its shares slip 1.4% in premarket trading following quarterly earnings that missed the mark. However, JPMorgan upgraded Tencent to overweight from neutral and expressed optimism about the company’s potential for double-digit earnings growth due to the expanding music industry.
On the positive side, Goodyear Tire & Rubber gained nearly 2% following an upgrade to buy from hold Deutsche. The firm expressed confidence in Goodyear’s strong turnaround potential thanks to new leadership and operational turnaround plans.
Fintech company StoneCo added 1.2% during premarket trading after Bank of America upgraded shares to buy from neutral, citing the company’s new management team and increased cost urgency as drivers for market share gain and increased monetization.
However, Advance Auto Parts declined more than 4% after being downgraded to underperform from neutral Bank of America, which highlighted ongoing challenges that could put pressure on free cash flow for at least the next 12 months.
This latest news in premarket trading is attracting attention from investors, as analysts and experts weigh in on the impact of various factors affecting these companies.
CNBC’s Michelle Fox, Brian Evans, and Sarah Min all contributed to reporting on this developing situation.