Stock Analysis & Ideas

Friday’s Pre-Market: Here’s What You Need To Know Before The Market Opens

US stock futures were up on Friday as investors await jobs data for the month of April, with signs of an economic recovery expected to be confirmed by a drop in the unemployment rate.

While the Dow futures were up 0.3%, S&P and Nasdaq futures rose 0.2% each.

Companies expected to report before the opening bell include Cigna Corp. (CI), DraftKings (DKNG), and Nikola (NKLA), while Service Properties Trust (SVC) and The RMR Group Inc. (RMR) are expected to report after the market close.

Assertio Holdings Inc. (ASRT) was the most actively traded stock in pre-market trading as the pharma company announced that it has partnered with Cove, a telemedicine platform for migraines, to make CAMBIA (diclofenac potassium) oral solution and SPRIX (ketorolac tromethamine) nasal spray available to Cove’s patients.

LM Funding America (LMFA) was the biggest gainer in pre-market trading as the stock popped 387.4%. The specialty finance company announced a reverse stock split of 1-for-5 shares, effective from today.

ChemoCentryx Inc. (CCXI) was the biggest laggard in pre-market trading as the stock crashed 46.3%. The bio-pharmaceutical company announced the US Food and Drug Administration’s (FDA) approval for the use of avacopan in 30mg doses twice a day in adult patients.

In earnings news, AMC Entertainment’s (AMC) 1Q results disappointed analysts as losses widened in the first quarter. AMC incurred an adjusted loss of $1.42 per share compared to the $1.30 loss per share estimated by analysts. The company reported a loss of $2.22 per share in the same quarter last year.

The company’s revenues also missed consensus estimates as revenues plunged 84.3% year-on-year to $147.4 million, versus consensus estimates of $153.43 million.

AMC CEO Adam Aron said, “Strengthening AMC’s liquidity position and balance sheet remains very high priorities, and we have been active across the board… Taken together, we have made well more than $4 billion of progress from our implementing a myriad of capital actions to help us make it through this global storm. As we look ahead to the remainder of 2021 and beyond, AMC remains focused on continued bold actions, in executing our strategies both operationally and financially, as we work to recover from the impact of COVID-19.”

Square (SQ), the digital payments company posted stellar results in 1Q. The company reported total net revenues of $5.06 billion, a jump of 266% year-on-year. Excluding revenue from bitcoin, total net revenue was $1.55 billion, an increase of 44% year-on-year. Analysts had forecast revenues of $3.3 billion.

Square reported adjusted net income of $0.41 per share topping analysts’ estimates of $0.17 per share.

The company stated its reasons for deducting bitcoin revenue from total revenues in its shareholder letter. “We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control.”

Roku (ROKU), the digital media player company posted strong results in the first quarter. The company reported a profit of $0.54 per share versus a loss of $0.45 in the same quarter last year. Analysts were expecting a loss of $0.13 per share. Roku posted revenues of $574.2 million in 1Q, up 79% year-on-year that topped consensus estimates of $492 million.

Roku stated in its letter to shareholders, “With so much outstanding content being made available on the Roku platform, publishers are investing heavily in promotion and leveraging our industry-leading, performance-driven marketing tools to build their TV streaming audiences. As a result, media and entertainment advertising (which includes what we’ve traditionally called our “audience development” business), grew faster than the overall platform in Q1 2021.”

ViacomCBS’s (VIAC) first-quarter results topped Wall Street expectations and were boosted by streaming services.

Revenue of $7.4 billion increased 14% year-on-year and beat the consensus estimate of $7.3 billion. Adjusted EPS of $1.52 rose from $1.12 a year ago and topped consensus forecasts of $1.23.

Meanwhile, NIO (NIO) is expanding its footprint into Norway, its first overseas destination away from China. The company intends to establish a robust ecosystem in the country comprising cars, services, and digital experiences. It also plans to build its lifestyle brand and community.

NIO’s CEO, William Li said, “From its founding, NIO’s vision is to be a global brand with high-quality products and services to the users worldwide. Norway is a sustainable and innovative country and resonates with our vision.”

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