US stock futures declined on Friday as rising COVID-19 infections in countries like India, Brazil, and Japan increased investors’ concerns over supply chain disruptions that could lead to a rise in inflation.
Dow futures were down 0.4%, S&P futures slipped 0.5%, and Nasdaq futures had dropped 0.7% at the time of writing.
While companies including AbbVie (ABBV), Chevron (CVX), Colgate-Palmolive (CL), ExxonMobil (XOM), Goodyear Tire (GT) are expected to report before the opening bell, SB Financial Group (SBFG) is expected to report after the market close.
Farmmi Inc. (FAMI) was the most actively traded stock in pre-market trading after the Chinese supplier of agricultural products announced a $42 million capital raise yesterday.
Palisade Bio (PALI) was biggest gainer in pre-market trading rising 381.9% at the time of writing. PALI began trading on the Nasdaq on April 28 after the merger between Leading BioSciences and Seneca Biopharma was completed.
MicroVision Inc (MVIS) was the biggest laggard falling 22.3% in pre-market trading as the automotive lidar sensor company reported revenues of $0.5 million in 1Q versus $1.5 million in the same quarter last year. The company’s net loss widened to $6.2 million in 1Q versus a loss of $4.9 million in the year-ago period.
In earnings news, Nio (NIO), the Chinese maker of electric vehicles reported an adjusted loss of $0.04 (RMB0.23) per share versus analysts’ expectations of a $0.16 loss per share. The company reported a loss of RMB1.60 per share in the same quarter last year.
Total revenues of $1.22 billion (RMB7,982.3 million) came in ahead of Street estimates of $1.02 billion and advanced significantly from the year-ago period. Nio CEO William Bin Li said, “The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage. In light of the strong momentum under a volatile macro environment, we expect to deliver 21,000 to 22,000 vehicles in the second quarter of 2021.”
Twitter (TWTR) reported strong 1Q results that topped Street estimates. Total revenue grew 28% year-over-year in 1Q to $1.04 billion versus consensus estimates of $1.03 billion. Adjusted earnings increased 45.5% to $0.16 per share, beating Street estimates of $0.14 per share.
Twitter stated, “We are attracting more great people to Twitter than ever before and investing in our highest priorities to deliver on our long-term goals across consumer product, revenue product, and platform. As a result, we now expect headcount growth to more closely mirror expense growth in 2021, with headcount — and total costs and expenses — growing 25% or more on a year-over-year basis in 2021, ramping in absolute dollars over the course of the year.”
Technology giant Amazon (AMZN) delivered a blowout first quarter driven by adjusted net sales of $108.5 billion, up 41% year-on-year, and beating Street estimates of $104.46 billion. The company reported 1Q earnings of $15.79 per share that widely surpassed analysts’ expectations of $9.54 and more than tripled on a year-over-year basis.
McDonald’s Corp. (MCD), the international fast-food chain, served up better-than-expected results in the first quarter as the company’s revenues rose 9% year-on-year to $5.1 billion and came in ahead of analysts’ estimates of $5 billion.
Non-GAAP diluted earnings of $1.92 per share rose 27% year-on-year and beat consensus estimates of $1.81 per share.
McDonald’s President and CEO Chris Kempczinski said, “Our first quarter 2021 global comparable sales and revenues surpassed first quarter 2019 levels, even as resurgences and operating restrictions persist in many parts of the world. I continue to be inspired by the resilience of our crew members, franchisees, suppliers, and company employees as we lead with our values and stay true to our purpose of feeding and fostering communities.”
Western Digital Corp. (WDC) delivered stellar results in the fiscal third quarter as the data storage company’s results topped Street estimates. The company reported a 1% year-on-year drop in revenues to $4.1 billion, that still topped analysts’ estimates of $3.97 billion.
Non-GAAP EPS of $1.02 rose 20% year-on-year, beating consensus estimates of $0.68 per share.
Western Digital’s CEO, David Goeckeler said, “We reported solid results above the guidance range, driven by increasing momentum of our energy-assisted drives and our second-generation NVMe enterprise SSDs, improving NAND flash pricing trends, along with the continued accelerated digital transformation across end markets.”