Jonathan Kitchen
Stock futures were hovering around the flatline on Thursday, while the S&P 500 was on track to deliver its strongest first-quarter performance in the last five years.
Here are some of Thursday's biggest stock movers:
Biggest stock gainers
- Despite missing market expectations in Q4, RH (RH) shares rose 16% on the prospect of improved performance in the home furnishing business. Demand in Q1 is expected to grow in the positive mid-single digits, while revenue is anticipated to decline in the low single digits. Adjusted operating margin is targeted to be 6%–7%, and adjusted EBITDA is 12%–13%. For FY2024, demand is forecast to grow 12%–14%, with revenue increasing by 8%–10%. Adjusted operating margin is expected to be 13%–14%, and adjusted EBITDA margin is expected to be 12%–13%.
- Shares of Akebia Therapeutics (AKBA) surged 25% following the FDA's approval of Vafseo® (vadadustat) Tablets for the treatment of anemia due to chronic kidney disease (CKD) in adults on dialysis for at least three months. Vafseo is a once-daily oral medication that stimulates the body's production of erythropoietin to manage anemia. The approval, based on data from the INNO2VATE program and post-marketing safety data from Japan, where Vafseo was launched in 2020, allows Vafseo to be marketed in 37 countries. Akebia aims to establish Vafseo as a new standard of care for dialysis patients in the U.S. through its experienced commercial team and partnership with CSL Vifor.
- Estée Lauder's (EL) shares surged more than 4% after an upgrade by BofA Securities, citing the company's transformation into a more resilient and profitable entity. Despite recent struggles due to COVID lockdowns and a sluggish Chinese economy impacting its travel retail business, Estée Lauder has adapted by refreshing its product offerings and focusing on innovation. BofA Securities believes these changes position Estée Lauder for potential earnings of $6 per share in FY26, even with modest growth in China. While risks remain, particularly regarding the Chinese economy, BofA Securities upgraded Estée Lauder to Buy from Neutral and raised its price target to $170, reflecting a 17% premium from the previous day's closing price. The firm also revised its profit outlook for FY26 to $5.85, with a potential upside to $6.49.
Biggest stock losers
- MillerKnoll (MLKN) shares dropped 17% following a mixed performance in FQ3 and a downbeat outlook. The company expects 4Q24 net sales to range between $880M and $920M, below the consensus of $961.38M, citing demand patterns in the third quarter and a generally subdued macroeconomic environment. Adjusted diluted earnings per share for the period are forecast to be between $0.49 and $0.57, also below the consensus of $0.68. The midpoint of this earnings range implies 29% year-over-year growth from the adjusted diluted earnings per share reported in the fourth quarter of the previous fiscal year. Based on this outlook, full-year adjusted diluted earnings per share are projected to be between $1.90 and $1.98, which is also below the consensus of $2.07.
- Intuitive Machines' (LUNR) shares dropped over 8% after the company filed a prospectus for an offering of $300 million shares of its class A common stock. The prospectus also included the resale of 159.81 million shares of class A common stock by selling stockholders.
- AMC Entertainment Holdings (AMC) stock price tumbled over 12% after announcing a plan to sell up to $250M in shares. This follows concerns about the company's finances, with reports of over $7B in losses over the past four years and expectations of continued losses in FY2024. While acknowledging potential stock price volatility, AMC suggests it might be due to broader market trends rather than their core business and expresses uncertainty about how long this volatility will last.
- Palantir Technologies' (NYSE:PLTR) stock declined approximately 4% following a downgrade from Monness, who shifted their rating from Neutral to Sell due to what they perceive as a "rich valuation." Monness has set a price target of $20 for the stock. Despite Palantir's strong performance in 2023 and 2024, driven by generative AI hype, the analysts believe the stock is overvalued. While Palantir is well positioned to benefit from the long-term AI trend and volatile geopolitics, Monness has concerns about the company's revenue consistency, execution, and valuation, particularly as they anticipate challenging economic conditions ahead.
More on related stocks
- RH (RH) Q4 2023 Earnings Call Transcript
- RH: Q4 Earnings, Improved Results May Be Coming, But Are Likely Priced In
- MillerKnoll, Inc. (MLKN) Q3 2024 Earnings Call Transcript
- Intuitive Machines files to sell $300M class A common stock
- RH Q4 results miss estimates but the company is upbeat on 2024 prospects