Key Highlights
- La-Z-Boy stock skyrocketed 20% after delivering better-than-expected quarterly results with a 37% jump in adjusted EPS
- ACM Research and Mercury Systems gained 9.6% and 8.9% respectively during premarket hours
- SpaceX shares advanced 4% following confirmation from Michael Burry that he’s not betting against the company
- Lionsgate Studios plunged 5% after Netflix dismissed reports of potential acquisition talks
- SOPHiA Genetics declined 4% on news of a discounted $50M equity offering
Shares of La-Z-Boy experienced a significant premarket rally of 20% following the furniture manufacturer’s impressive fourth-quarter earnings report. The company delivered adjusted earnings per share that climbed 37% compared to the same period last year. Top-line results exceeded Wall Street projections, bolstered by an 11% uptick in retail segment performance.
The furniture retailer’s adjusted operating margin reached 9.9%, reflecting improvements in supply chain operations and enhanced distribution network efficiency. Company executives provided first-quarter revenue projections that surpassed analyst expectations. Additionally, La-Z-Boy unveiled plans for a fresh $300 million stock buyback initiative.
SpaceX shares advanced 4% during premarket activity. Notable investor Michael Burry weighed in on the aerospace company’s valuation, clarifying that he isn’t taking a short position against the stock due to prohibitively expensive protective put options.
The private space exploration company recently overtook Amazon in worldwide market capitalization. Significant trading volume in near-term call options contributed to sustaining the stock’s positive momentum. Market observers characterized the inaugural day of options availability as experiencing considerable price swings.
ACM Research climbed 9.6% in early trading. Mercury Systems posted an 8.9% increase. Additional gainers included Copart, Zillow, and Broadridge Financial Solutions, each recording advances of 6% or more.
Conversely, Paccar and Blackstone experienced declines of 8.4% and 8.3% respectively during the morning session.
Lionsgate and SOPHiA Genetics Experience Declines
Lionsgate Studios shares retreated 5% following a TheWrap report indicating that Netflix has no plans to pursue an acquisition of the entertainment studio. This development contradicted previous speculation that had fueled takeover rumors and elevated the stock price.
An insider briefed on the situation informed TheWrap that Netflix isn’t considering a potential bid. Market participants quickly reversed the acquisition premium that had been incorporated into share valuations. Lionsgate has recently attracted investor attention due to its substantial film and television content catalog.
SOPHiA Genetics saw shares fall 4% after announcing the pricing of a public stock offering involving 10.53 million shares at $4.75 each. The capital raise is anticipated to generate approximately $50 million before expenses. Investment bankers received a 30-day option to purchase an additional 1.58 million shares.
The transaction is expected to finalize on June 18. The below-market pricing negatively impacted investor confidence. Worries regarding equity dilution prompted selling activity.
Overall Market Context and Bitcoin
S&P 500 futures showed a modest gain of 0.12% ahead of the market opening. Dow Jones futures registered a marginal decline of 0.02%. Market participants were anticipating the Federal Reserve’s interest rate announcement scheduled for later in the trading session.
Bitcoin declined 1.54% to trade at $64,595. The 10-year Treasury yield fell to 4.441%. Gold futures decreased 0.11%, whereas Brent crude oil futures climbed 0.67%.
Overseas markets posted gains during overnight trading, with Japan’s Nikkei 225 advancing 0.72% and China’s Shanghai Composite increasing 0.40%.
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