Marriott (MAR) – Marriott earned an adjusted 10 cents per share for the first quarter, beating the 3 cent consensus estimate, with the hotel operator’s revenue very slightly below forecasts. Marriott said it was seeing a rebound in demand as more people receive Covid-19 vaccinations. Shares fell 1.2% in premarket trading.
Coty (COTY) – Coty reported a breakeven fiscal third quarter, matching analysts’ estimates, with revenue in line with estimates as well. Sales were 3.3% below year-ago levels as European lockdowns muted demand for Coty’s cosmetics.
Energizer Holdings (ENR) – Energizer shares rose 1.7% in premarket action, after the company reported adjusted quarterly earnings of 77 cents per share compared with the 60 cent consensus estimate. Revenue also beat projections, and the maker of batteries and other household products raised its full-year forecast.
US Foods (USFD) – The food distributor’s stock was up 1% in the premarket, after it beat estimates by 7 cents with adjusted quarterly earnings of 12 cents per share. Revenue also topped estimates despite pandemic-related pressure on sales volume. The bottom line was helped by lower expenses.
BioNTech (BNTX) – The drug maker beat estimates on both the top and bottom lines for the first quarter, helping its stock surge by 8.7% in premarket action. BioNTech also said there’s no current evidence that points to the need to adapt its Covid-19 vaccine to emerging variants of the virus, although it is prepared to do so if necessary.
Tyson Foods (TSN) – The beef and poultry producer earned an adjusted $1.34 per share for its fiscal second quarter, beating the $1.12 consensus estimate, with revenue also above forecasts. Tyson said it expects its chicken segment to continue to experience some pressure due to a challenging labor environment and severe winter weather.
Viatris (VTRS) – Viatris shares added 2.6% premarket trading despite slightly lower-than-expected profit. Sales beat estimates and the healthcare company declared its first quarterly dividend of 11 cents per share. Viatris was created last year by a merger of Pfizer’s Upjohn unit and generic drug maker Mylan.
Freeport McMoran (FCX), Hecla Mining (HL), Southern Copper (SCCO) – These and other copper mining companies are getting a boost as copper prices hit record highs on tight supply and expectations of high demand. Freeport-McMoran rose 3.3% in the premarket, while Hecla jumped 3.6% and Southern Copper jumped 3.4%.
Simon Property (SPG) – The mall operator and Authentic Brands are buying apparel retailer Eddie Bauer from private equity firm Golden Gate Capital for an undisclosed amount. Eddie Bauer will join several other well-known brand names owned by the two companies, including Aeropostale, Forever 21 and Brooks Brothers.
AstraZeneca (AZN) — AstraZeneca may skip applying to the FDA for emergency use authorization for its Covid-19 vaccine, according to people familiar with the matter who spoke to the Wall Street Journal. It would instead focus on the more lengthy full-approval process.
Box Inc. (BOX) – Activist investor Starboard Value is putting up a minority directors slate for the board of software company Box, according to a Bloomberg report. Starboard owns an 8% stake in Box, but does not feel that performance has improved sufficiently since it invested in 2019.
Live Nation Entertainment (LYV) – Live Nation was upgraded to “buy” from “hold” at Jefferies, which said a 13% pullback has provided an attractive entry point for the concert and live event promoter. Jefferies calls Live Nation a “pure-play recovery” and long-term growth story, and the company’s shares added 1.3% in premarket trading.
Intel (INTC) – UK competition regulators have begun a formal inquiry into the proposed acquisition of Intel’s flash memory and solid state hard drive businesses by South Korea’s SK Hynix. Intel agreed to sell the units to Hynix in October for about $9 billion. Regulators want to determine if the transaction would lead to a substantial lessening of competition.
Virgin Galactic — Virgin Galactic fell more than 4% during extended trading after the space company reported a first-quarter loss of 55 cents per share versus a loss of 27 cents expected by analysts polled by Refinitiv. Virgin Galactic announced that it has yet to set a target date for its next spaceflight test, which the company has previously planned for this month.
Simon Property Group — The real estate owner and manager saw its stock retreat about 1% after the bell following its first-quarter earnings report. Simon reported first-quarter earnings of $1.36 per share on revenues of $1.15 billion. Analysts polled by Refinitiv had expected per-share earnings of 96 cents on revenues of $1.13 billion.
Callaway Golf — Shares of the golf equipment and apparel company popped more than 5% during extended trading after it reported first-quarter profit and sales that soared past expectations and said demand for its products has never been higher. “Our golf equipment business is continuing to experience unprecedented demand while our soft goods business and Topgolf business are recovering from the pandemic faster than anticipated,” Chief Executive Chip Brewer said in a statement.
Wynn Resorts — Wynn shares advanced 2% despite reporting results that fell short of the Street’s expectations. The hotel operator reported a first-quarter loss of $2.41 per share on revenues of $726 million, both of which undershot estimates compiled by Refinitiv.
Roblox — Shares of the online gaming platform jumped 5% after it reported a first-quarter loss of 46 cents per share on revenues of $387 million. The company also said its average daily active users were 42.1 million during the quarter, up 79% year over year.
Affirm Holdings — Affirm dropped about 3% in extended trading after it reported a third-quarter loss of $1.06 per share on revenues of $230.7 million. Analysts had expected a loss per share of 29 cents on revenues of $198.2 million, per Refinitiv.
Marriott — The hotel stock fell more than 3% after the company reported a revenue miss. Marriott did beat earnings estimates, however, with an adjusted 10 cents per share for the first quarter, 3 cents above Refinitiv consensus estimate.
US Foods — The food distributor’s stock fell more than 3% even after the company posted better-than-expected quarterly earnings and revenue. US Foods beat estimates by 7 cents with adjusted quarterly earnings of 12 cents per share amid lower expenses, according to Refinitiv.
Ark Innovation — Shares of Cathie Wood’s flagship ETF fell 4% around midday on Monday amid further selling pressure in innovation stocks. Her fund is now trading below its low of the year from February. Tesla fell 4.2% and Teladoc Health dropped 5.6%. Square and Roku fell 6.6% and 2.1%, respectively. DraftKings declined 5.2% and Zillow lost 3.8%.
Simon Property Group — Shares of the mall operator rose about 1.7% on news that it and Authentic Brands are purchasing retailer Eddie Bauer from private equity firm Golden Gate Capital. Eddie Bauer will join several other brand names owned by the two companies, including Aeropostale, Forever 21 and Brooks Brothers.
Box — The tech stock bounced 4.4% after activist investment firm Starboard Value said it would nominate more directors for Box’s board. Box’s current board said in a statement that it does not believe “the changes to the Board proposed by Starboard are warranted or in the best interests of all stockholders.”
Intel — Shares of the chipmaker dipped 2.1% after Atlantic Equities downgraded the stock to underweight. The research firm said in a note to clients that Intel’s plan to expand its manufacturing base wouldn’t help it fend off rival Advanced Micro Devices.
Coty — The beauty stock fell nearly 9% after Coty’s third-quarter results failed to top expectations. Coty’s reported that it broke even on an adjusted earnings per share basis and generated $1.03 billion in revenue. Analysts surveyed by Refinitiv expected earnings of 1 cent per share on $1.03 billion in revenue. The company’s revenue in the Americas was lower than expected, according to FactSet.
“You have to resist the urge to believe that ‘FAANG’ is finished and dump it on the obituary chatter.”
FAANG is an acronym for Facebook, Amazon, Apple, Netflix and Google-parent Alphabet. They were among the biggest winners at the height of the Covid-19 pandemic last year. But with the economy recovering and social distancing policies easing, cyclical names like Freeport-McMoRan and Cleveland-Cliffs are making massive gains compared to the tech giants.
Only two of those Big Tech stocks — Facebook and Alphabet — are outperforming the S&P 500 in 2021. Apple and Netflix, meanwhile, are down year to date. Still, Cramer said the entire group is worth owning for the long-haul.
“This is the year to own Facebook and Alphabet, the advertising plays,” he said. “Other years were better for Netflix or Amazon or Apple, so don’t assume they all deserve to trade together.”
Mining and materials: Alcoa and Freeport-McMoRan
Oils: Pioneer Natural Resources and Chevron
Infrastructure: Caterpillar, Deere and United Rentals
Homebuilders: Lennar, Toll Brothers and D.R. Horton
Home improvement/furnishings: Williams-Sonoma, Wayfair, Lowe’s, Home Depot, Stanley Black & Decker and Best Buy
Consumer products: PepsiCo, Coca-Cola and Procter & Gamble
Transports: J.B. Hunt, Norfolk Southern and Cummins
Banks: Any bank
Retail: L Brands, American Eagle Outfitters and Gap
The latest earnings reports are chock-full of companies reporting earnings above expectations, and most importantly, raising guidance.
Take steel maker Nucor, which reported what CEO Leon Topalian called the “most profitable quarter in our Company’s history” on improved pricing and margins. “We expect earnings for the second quarter of 2021 to exceed our first quarter results, setting a new record for quarterly earnings. Most of the end-use markets we serve remain strong and inventories remain lean across supply chains. We believe the current favorable demand environment will continue through the rest of 2021,” he wrote to investors.
Another large industrial, iron ore mining company Cleveland-Cliffs, raised full-year EBIDTA (cash flow), also on expectations of higher prices.
Whirlpool reported net sales growth of 24%, beat earnings expectations by more than 30%, raised full-year guidance by 18%, raised the dividend, and announced an increase in share buybacks.
Homebuilder D.R. Horton reported a significant earnings beat and raised full-year revenue guidance.
In health, HCA Healthcare raised full-year guidance, joining other providers UnitedHealth and Tenet Healthcare.
One exception to the earnings bright spots: railroads.
Union Pacific was the latest railroad to miss on earnings, following Kansas City Southern and CSX, which also missed. The inability to model bad weather may be the explaining factor: “The Q1 EPS shortfall largely reflects the winter storm disruption,” Baird analyst Garrett A. Holland wrote in a note to clients. “The 2021 outlook is intact and may prove conservative as economic activity strengthens.”