TLDR
- La-Z-Boy skyrocketed 20% after delivering quarterly results that exceeded Wall Street expectations with a 37% jump in adjusted EPS
- ACM Research and Mercury Systems recorded premarket gains of 9.6% and 8.9% respectively
- SpaceX stock advanced 4% following Michael Burry’s clarification that he’s not taking a short position
- Lionsgate Studios declined 5% after Netflix dismissed reports of acquisition discussions
- SOPHiA Genetics tumbled 4% on news of a dilutive share offering that will generate $50M
Shares of La-Z-Boy experienced a dramatic 20% surge during premarket hours Wednesday after the furniture retailer delivered fourth-quarter financial results that surpassed Wall Street projections. The company’s adjusted earnings per share climbed 37% compared to the same period last year. Revenue figures exceeded analyst forecasts, bolstered by an impressive 11% uptick in retail sales activity.
The furniture manufacturer’s adjusted operating margin grew to 9.9%, benefiting from enhanced supply chain operations and more efficient distribution networks. Company leadership provided first-quarter revenue projections that topped analyst expectations. Additionally, La-Z-Boy revealed plans for a fresh $300 million stock buyback initiative.
SpaceX shares gained 4% in early morning trading. Notable investor Michael Burry weighed in on the space exploration company’s market valuation while making it clear he isn’t betting against the stock, noting that protective put options carry prohibitively high premiums.
SpaceX has recently overtaken Amazon in worldwide market capitalization standings. Significant trading volume in near-term call options contributed to the stock’s sustained upward trajectory. The debut session of options trading for the company was characterized by considerable price swings.
ACM Research climbed 9.6% during premarket activity. Mercury Systems registered an 8.9% increase. Copart, Zillow, and Broadridge Financial Solutions each recorded advances of 6% or more.
Among declining stocks, Paccar and Blackstone retreated 8.4% and 8.3% respectively in premarket trading.
Lionsgate and SOPHiA Genetics Pull Back
Lionsgate Studios shed 5% following a TheWrap report indicating that Netflix holds no interest in purchasing the entertainment studio. This contradicted previous media reports that had ignited merger speculation and driven the stock higher.
A source with knowledge of the situation informed TheWrap that Netflix isn’t exploring any acquisition bid. Market participants reversed the takeover premium that had been incorporated into the share price. Lionsgate has attracted considerable attention lately because of its valuable portfolio of film and television properties.
SOPHiA Genetics fell 4% after announcing the pricing of a public equity offering consisting of 10.53 million shares at $4.75 each. The capital raise is projected to generate approximately $50 million in gross proceeds. Investment underwriters received a 30-day option to purchase an additional 1.58 million shares.
The offering is slated to complete on June 18. The below-market pricing pressured investor confidence. Worries regarding equity dilution triggered the sell-off.
Broader Market and Bitcoin
S&P 500 futures showed a 0.12% gain approaching the market open. Dow Jones futures registered a marginal 0.02% decline. Market participants were anticipating the Federal Reserve’s interest rate announcement scheduled for later Wednesday.
Bitcoin decreased 1.54% to trade at $64,595. The 10-year Treasury yield slipped to 4.441%. Gold futures declined 0.11%, whereas Brent crude oil futures advanced 0.67%.
Asian equity markets posted gains during overnight sessions, with Japan’s Nikkei 225 advancing 0.72% and China’s Shanghai Composite climbing 0.40%.
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