A Lululemon store in New York, United States, on Tuesday, March 28, 2023.
Stephanie Keith | Bloomberg | Getty Images
Check out the companies making headlines before the bell.
Lululemon – Lululemon shares are up more than 16% ahead of Wednesday’s open after posting a strong holiday quarter and sharing upbeat guidance for the current fiscal year. The athletic apparel company reported adjusted earnings of $4.40 per share on sales of $2.77 billion and said same-store sales were up 27%.
carnival corp — Shares of the cruise line rose 2.5% in premarket trading after Susquehanna upgraded Carnival to positive from neutral. The investment firm said in a note to clients that Carnival has “adequate liquidity” and should be able to improve its unit margins this year.
Urban Outfitters, Burlington, foot cabinet, Ross stores – Major clothing and homewares retailers were in the red Wednesday morning after UBS downgraded the group to sell from neutral, and said it sees at least 23% downside from its price targets for each of the companies as a slowdown in consumer spending outweighs the Industry dampens earnings prospects. Urban Outfitters and Ross shares are down 2.3%, Burlington 2.6% and Foot Locker 1.9% pre-IPO.
Bath and body works — Shares of the homecare and fragrances retailer fell more than 2% after a downgrade by UBS and said a recessionary environment is expected to weigh on the stock this year and next. UBS labels many of the company’s products as discretionary, citing candles and areas as an example where consumers “will spend less in a challenging macro environment.”
Micron technology — The semiconductor maker gained 2.6% after falling 1% on Tuesday. Micron’s results for the second fiscal quarter missed analysts’ expectations for both revenue and earnings, according to consensus estimates from Refinitiv. Micron lost $1.91 a share, more than the expected loss of 86 cents a share, while revenue was $3.69 billion versus a consensus estimate of $3.71 billion. Micron is planning a larger-than-expected workforce reduction and has informed Barron that Barron’s bloated customer base is diminishing.
Paychex Inc. – Shares of the payroll service provider are up nearly 3% premarket ahead of its third-quarter results due after Wednesday’s close. Analysts are expecting revenue of $1.36 billion and earnings per share of $1.25, according to FactSet. The stock is down 5.9% so far this year.
UBS – Shares of the Swiss bank were up 2.7% in early trade after UBS announced that former CEO Sergio Ermotti will replace current CEO Ralph Hamers, effective next week. Ermotti was CEO for nine years until October 2020 and Hamers will continue to serve in an advisory capacity during the transition. UBS approved the purchase on March 19 Swiss credit for 3 billion Swiss francs or 3.2 billion dollars.
– CNBC’s Jesse Pound, Alex Harring, Tanaya Macheel and Samantha Subin contributed coverage.
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