Biggest stock movers today: NTGR, OXM, and more

Stock futures inched up slightly during Thursday’s premarket session as expectations for a 25bps rate cut increased, following August’s inflation report, which revealed the core consumer price index exceeded forecasts.

Here are some of Thursday’s biggest stock movers:

Biggest stock gainers

• Netgear (NASDAQ:NTGR) shares surged 27% after the company updated its business outlook for 3Q24, following a $135M litigation settlement with TP-Link Systems and the earlier-than-expected launch of its next-generation 5G mobile hotspot. The company now anticipates Q3 revenue of $170M to $180M, up from prior guidance of $160M to $175M. The settlement is expected to provide a net benefit of $103.6M, leading to a projected GAAP operating margin of 48.0% to 51.0%, significantly higher than the prior forecast of (15.3)% to (12.3)%. However, Non-GAAP earnings will not reflect the full benefit, with a margin forecast of (4.0)% to (1.0)%, compared to the previous outlook of (11.0)% to (8.0)%. Netgear also expects its Q3 GAAP tax expense to be $19.0 million to $20.0 million and Non-GAAP tax expense to range between zero and $1.0 million. Additionally, the company has repurchased 99,000 shares at $14.92 per share but expects no further buybacks this quarter due to trading window restrictions.

Biggest stock losers

• Oxford Industries (NYSE:OXM) tumbled more than 10% after reporting lower-than-expected Q2 results and cutting its 2024 financial guidance due to weak consumer sentiment. The apparel company, which owns brands like Tommy Bahama and Lilly Pulitzer, now projects net sales for FY2024 in the range of $1.51B to $1.54B, below the prior view of $1.59B to $1.63B and falling short of the $1.61B consensus. Adjusted EPS is forecast between $7.00 and $7.30, significantly below the previous outlook of $8.60 to $9.00 and the consensus estimate of $8.66. For Q3, OXM expects net sales of $310M to $325M, compared to the $352.5M consensus, with adjusted EPS anticipated between $0.00 and $0.20, far below the expected $1.09 per share.
• Chinese EV manufacturers NIO (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) experienced a decline of around 3% following reports that China is urging its automakers to retain advanced EV technology domestically. China is encouraging manufacturers to export knock-down kits, where key components are produced domestically and shipped overseas for final assembly, a strategy aimed at fostering localization efforts. While some Chinese automakers have already adopted this approach, the Ministry of Commerce has cautioned against investments in India and Turkey without prior notification. This emphasis on domestic production could hinder the globalization efforts of Chinese automakers seeking to expand their market reach and mitigate the impact of stiff competition and slowing domestic sales.