After-hours trading saw significant movements in several companies based on their recent financial performance.
Intel experienced a decline of over 6% in its shares after the company projected soft revenue and earnings for the current quarter. The chipmaker anticipates first-quarter revenue between $11.7 billion and $12.7 billion, with adjusted earnings expected to break even. This guidance fell short of analysts’ expectations for earnings of $0.05 per share on $12.51 billion in sales.
In contrast, Intuitive Surgical reported strong quarterly results, with its shares rising by 3%. The firm posted adjusted earnings of $2.53 per share for the fourth quarter, surpassing expectations of $2.26, alongside a revenue of $2.87 billion, above the anticipated $2.75 billion.
Capital One’s stock dipped by 2% following the announcement of its acquisition of startup Brex for $5.15 billion, split equally between cash and stock. Additionally, the bank’s fourth-quarter adjusted earnings fell short of analysts’ estimates, at $3.86 compared to the expected $4.11.
Clorox shares declined nearly 2% as the company announced its agreement to purchase Gojo Industries, valued at $2.25 billion. After accounting for anticipated tax benefits, the effective purchase price is expected to be around $1.92 billion. Despite this acquisition, Clorox reaffirmed its 2026 net sales and earnings outlook.
CSX’s shares rose by 3%, benefiting from a better-than-expected intermodal revenue of $562 million for the fourth quarter. Alcoa also surpassed revenue expectations, leading to a 2% increase in its stock, reporting $3.45 billion compared to the anticipated $3.29 billion. Spotify’s shares increased by nearly 2% after being upgraded to “buy” by Goldman Sachs.
Why this story matters:
- Highlights the varied financial performance and market responses of key companies, influencing investor sentiment.
Key takeaway:
- Companies like Intel and Capital One face challenges, while others like Intuitive Surgical and Alcoa show stronger-than-expected results.
Opposing viewpoint:
- While some analysts may view the slightly soft guidance from companies like Intel as a negative sign, others may argue that market reactions can be overly sensitive to quarterly forecasts.
