Biggest stock movers Wednesday: SBUX, MCD, QCOM, and more
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Contributor since / Followers
Contributor since / Followers
4 weeks ago
Nikada
Stock futures continued to edge lower, exhibiting a cautious move in the premarket hours of Wednesday ahead of the most anticipated earnings of an EV maker, Tesla (TSLA).
Here are some of Wednesday’s biggest stock movers:
Biggest stock gainers
- Texas Instruments (TXN) shares climbed nearly 4% after the company exceeded Q3 expectations, with revenue showing a 9% sequential improvement. For Q4, the company forecasts earnings between $1.07 and $1.29 per share and revenue between $3.7B and $4B. Analysts, however, had projected earnings of $1.35 per share and $4.08B in revenue, both above the midpoint of Texas Instruments’ guidance.
Biggest stock losers
- Enphase Energy (ENPH) shares tumbled 12% after the company posted disappointing Q3 results, with a 31% Y/Y revenue decline and net income dropping to $45.76M, or $0.33/share, from $113.95M, or $0.80/share, a year ago. For Q4, Enphase provided downbeat guidance, projecting revenue between $360M-$400M, a midpoint of $380M below the consensus of $433.5M. The company expects non-GAAP gross margins between 49%-52% with net IRA benefit and 39%-42% excluding it.
- Despite increasing its dividend by 7%, Starbucks (SBUX) shares dropped over 4% due to disappointing preliminary fourth-quarter results. Global comparable store sales decreased by 7%, and consolidated net revenue declined 3% to $9.1B, below the $9.4B consensus. Non-GAAP EPS came in at $0.80, missing the $1.03 consensus and down from $1.06 last year. This decline was primarily attributed to weaker performance in North America, particularly in the United States, where comparable store sales declined by 6% due to fewer customer transactions. Additionally, Starbucks faced challenges in China, with comparable store sales declining 14% due to heightened competition and a sluggish economic environment. Given the CEO transition and current business conditions, the company has also suspended its financial guidance for the entire FY2025.
- McDonald’s (MCD) shares fell as much as 6% following a warning issued by the Centers for Disease Control (CDC) regarding an E. coli outbreak in Colorado and Nebraska potentially connected to the restaurant chain’s Quarter Pounder. Initial investigations suggest that a portion of the illnesses may be attributed to slivered onions used in the Quarter Pounder, sourced from a specific supplier serving three distribution centers. In response, McDonald’s has taken immediate safety measures by removing the affected product from its supply chain and pausing the distribution of all slivered onions in the impacted region. Furthermore, the company has temporarily discontinued the sale of Quarter Pounders in restaurants located in Colorado, Kansas, Utah, Wyoming, and parts of several other states.
- Qualcomm’s (QCOM) shares slipped more than 5% after reports surfaced that Arm Holdings decided to terminate a key license agreement that granted the chipmaker access to Arm’s intellectual property for chip design. The British chip designer, a longtime partner and key supplier to Qualcomm, issued a 60-day cancellation notice, intensifying their ongoing legal battle. This move escalates an ongoing legal dispute between the two companies, which began in 2022 when Arm sued Qualcomm for breaching contract terms and trademark infringement after Qualcomm acquired Nuvia, a chip-making startup that was also an Arm licensee. Qualcomm argues that the current license covers Nuvia’s operations, while Arm insists that a renegotiation was required after the acquisition.