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Why 8x8 (EGHT) Shares Are Sliding Today
Shares of business communications software company 8x8 (NYSE:EGHT) fell 10.8% in the morning session after Morgan Stanley analyst Meta Marshall downgraded the stock’s rating from Equal-weight (Hold) to Underweight (Sell) and lowered the price target from $3 to $2, citing a “challenging growth equation.” The new price target represents a potential 8% downside from where shares traded when the downgrade was announced and suggests the analyst expects the stock to underperform in the near term.
Why MSC Industrial (MSM) Shares Are Getting Obliterated Today
Shares of industrial supplies company MSC Industrial Direct (NYSE:MSM) fell 13.8% in the pre-market session after the company provided softer preliminary Q3’2024 results. Q3’24 Net sales is expected to be within $978M-$980M, down 7.3%-7.1% Y/Y and below consensus expectations. As a result, the company lowered FY’2024 guidance and expects yearly ADS (average daily sales) growth of (4.7)% - (4.3)% ( vs. previous expectations of 0% - 5%). Similarly, Adjusted Operating Margin is expected to fall within 10.5% - 10.7% (vs. previous expectations of 12.0% - 12.8%). Management attributed the weak forecast to two factors. 1.) Manufacturing softness and slower-than-anticipated ramp in Core Customers resulted in a lower sequential revenue improvement than anticipated. 2.) Gross margins fell approximately 60 basis points below expectations primarily due to increased product and customer mix headwinds and unexpected dilution from web price realignment.
Why Adobe (ADBE) Stock Is Up Today
Shares of creative software maker Adobe (NASDAQ:ADBE) jumped 17% in the pre-market session after the company reported a “beat and raise” quarter. First-quarter earnings results beat analysts' revenue, remaining performance obligations (RPO – leading revenue indicator), and EPS expectations. These beats were driven by massive outperformance in its net new Digital Media ARR (annual recurring revenue), which clocked in at $487 million (vs estimates of $434 million). Thanks to the strong results, Adobe upgraded its full-year net new Digital Media ARR and EPS guidance, sending the stock price higher. Its revenue guidance for next quarter missed Wall Street's estimates, but that didn't matter too much because the market cares most about its digital media segment.