Several companies made headlines before the bell, with mixed results. Meta Platforms, the parent company of Facebook, saw its stock plunge more than 14% after issuing weaker-than-expected second-quarter revenue guidance. However, first-quarter earnings and revenue exceeded analysts’ estimates. Honeywell, an industrial stock, rose 2.2% in premarket trading after posting earnings per share of $2.25, beating analysts’ estimates, and reporting revenue of $9.11 billion, higher than expected. Merck, a pharmaceutical giant, added 2.1% on stronger-than-expected earnings for the first quarter, with adjusted earnings per share of $2.07 and revenue of $15.78 billion. Southwest Airlines, on the other hand, tumbled nearly 9% after missing on both top and bottom lines, reporting adjusted losses wider than expected and revenue below estimates.
American Airlines, despite a wider-than-expected loss for the first quarter, saw its shares rise about 6%. The company projected earnings of $1.15 to $1.45 per share in the second quarter, above the consensus estimate. Chipotle Mexican Grill’s shares rose 3% after exceeding Wall Street’s first-quarter estimates, with same-store sales rising 7%. International Business Machines (IBM) shares slid 8.5% following a disappointing first-quarter revenue report. IBM’s revenue missed estimates but beat on the bottom line, with the company warning of foreign exchange headwinds to revenue growth. IBM also announced the acquisition of HashiCorp for $6.4 billion, boosting HashiCorp shares by about 4.4%.
Caterpillar, the construction equipment maker, fell 4% after reporting revenue for the most recent quarter that missed analysts’ estimates. Deutsche Bank’s U.S.-traded shares jumped 6% after revenue and profit exceeded expectations amid a recovery in its investment banking segment. Comcast shares slipped 0.5% despite reporting better-than-expected first-quarter results, as the company reported a drop in broadband subscribers. Align Technology, an orthodontics company, gained 5.1% after surpassing analysts’ expectations for its first-quarter results, posting higher adjusted earnings and revenue than anticipated. ServiceNow, a workflow management company, shed 4% after narrowly beating analysts’ revenue expectations in the first quarter.
Overall, the market saw a mix of positive and negative reactions to the earnings reports of various companies. While some stocks rose on better-than-expected results, others fell short of expectations and experienced declines. Investors are closely monitoring these developments and adjusting their strategies accordingly. The earnings season continues to play a significant role in shaping market trends and influencing investor sentiment. It remains to be seen how these companies will continue to perform in the coming quarters and how their stock prices will be impacted by their financial results.
