Tuesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens

U.S. stock futures were mixed on Tuesday as investors awaited data related to the trade deficit. Notably, the U.S. Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report for April is scheduled to be released today.

Dow and S&P futures were relatively flat, while Nasdaq futures were trading approximately 0.4% higher at the time of writing.

Companies that are expected to report earnings before the market opens include Academy Sports and Outdoor (ASO), Momo (MOMO), and Thor Industries (THO). UiPath (PATH), Casey’s General Stores (CASY), and Limoneira Co (LMNR) are expected to report after the market close.

Clover Health Investments (CLOV) was the most actively traded stock in pre-market trading, with 23.85 million shares having changed hands at the time of writing. There was no fundamental news in support of the trading sentiment.

AH Belo Corp (AHC) was the biggest gainer as the stock popped 268.8% at the time of writing. This Dallas-based media company that owns newspapers in North Texas had no fundamental news explaining the trading frenzy.

Dot Therapeutics-2 Inc (DAWN) was the biggest laggard in pre-market trading, as the stock plunged more than 19% at the time of writing. There was no fundamental news explaining the downtrend.

In earnings news, the chipmaker Marvell (MRVL) which develops and produces semiconductors and related technology announced strong fiscal first-quarter 2022 results. The company reported revenues of $832.3 million, which surpassed the Street’s estimates of $804.2 million and surged 20% year-over-year.

Reported earnings were $0.29 per share, beating the consensus estimates of $0.27 per share and jumping 61.1% from the prior-year period.

Marvell CEO Matt Murphy commented, “The acquisition of Inphi increases and accelerates our growth opportunity in the data center, Marvell’s largest end market by revenue. Marvell’s outlook for strong revenue growth in the second quarter highlights robust demand across all our key end markets. I have never felt stronger about our prospects and believe that we are at the beginning of a multi-year growth cycle.”

Meanwhile, Tyler Technologies (TYL), integrated information management solutions and services provider to the public sector, has updated its 2021 guidance. The company said the new forecasts include the impact of the NIC Inc. acquisition that was completed in April.

For 2021, Tyler forecast GAAP total revenue to be between $1.507 billion and $1.537 billion and non-GAAP revenue in the range of $1.510 – $1.540 billion. Adjusted earnings per share are likely to be in the $6.65 to $6.77 range.

Tyler CEO Lynn Moore said, “Our guidance reflects a strong year-to-date performance and improving market activity for Tyler. As we noted previously, the NIC acquisition is expected to be significantly accretive to non-GAAP earnings per share and EBITDA. As we continue to work together with the NIC leadership team to identify and prioritize opportunities, we are emboldened by the potential to accelerate long-term growth in both of our businesses and expand our platform for connected communities.”

In M&A news, the global source for 3D measurement, imaging, and realization technology, FARO Technologies (FARO) has acquired HoloBuilder Inc, a tech firm, in a cash deal worth $34 million. The acquisition will complement the company’s Digital Twin offerings.

FARO Technologies CEO Michael Burger commented, “The high-value that digitalization brings to the AEC and Operations & Maintenance (O&M) industries creates significant market opportunity for FARO. The addition of HoloBuilder to our offering accelerates the reality of a true end-to-end Digital Twin solution and advances our strategic objective of increased recurring revenue through market share gains in this large and growing segment.”

Meanwhile, the global producer of construction aggregates, Vulcan Materials Company (VMC), has inked a cash deal to acquire U.S. Concrete, Inc. (USCR), a supplier of aggregates and ready-mixed concrete for $1.294 billion. As per the terms of the agreement, all of the outstanding shares of U.S. Concrete will be purchased by Vulcan at a purchase price of $74.00 per share in cash. Upon closure of the deal, it is expected to be accretive to Vulcan’s earnings per share in the first full year post-merger and raise its EBITDA by about $190 million, excluding synergies.

Vulcan CEO Tom Hill said, “U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint.”

In other news, the global biotechnology company Biogen, Inc. (BIIB) and Japan-based pharmaceutical company Eisai, Co. Ltd received FDA’s accelerated approval for ADUHELM, a pathbreaking treatment for Alzheimer’s disease. The accelerated approval includes a controlled trial to verify the clinical benefit of ADUHELM in patients with Alzheimer’s disease, to be conducted by Biogen.

This historic moment is the culmination of more than a decade of ground-breaking research in the complex field of Alzheimer’s disease. We believe this first-in-class medicine will transform the treatment of people living with Alzheimer’s disease and spark continuous innovation in the years to come,” said Biogen CEO Michel Vounatsos.