Tiny Biotech Goes Viral on Trial Success

Author

Adam Garcia
May 28, 2025

A legacy retailer is rising on an earnings beat, a major sporting goods chain stood firm on full-year guidance despite tariff turbulence, and a tiny biotech is surging 250% after a surprise early trial success. Read on to find out more.

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What to Watch

Earnings:

  • NVIDIA Corporation [NVDA]: Aftermarket

  • Salesforce, Inc. [CRM]: Aftermarket

  • Synopsys, Inc. [SNPS]: Aftermarket

  • Veeva Systems Inc. [VEEV]: Aftermarket

  • Agilent Technologies, Inc. [A]: Aftermarket

  • HP Inc. [HPQ]: Aftermarket

  • Nutanix, Inc. [NTNX]: Aftermarket

  • Pure Storage, Inc. [PSTG]: Aftermarket

  • U-Haul Holding Company [UHAL]: Aftermarket

Economic Reports:

  • Minneapolis Fed President Neel Kashkari speech in Tokyo: 4:00 am

  • Minutes of Fed's May FOMC meeting: 2:00 pm

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Sporting Goods

Dick’s Sporting Goods Maintains Full-Year Outlook Despite Tariff Risks

Dick’s Sporting Goods (NYSE: DKS) reaffirmed its full-year financial projections today morning, signaling confidence in its performance even as global tariffs and macroeconomic uncertainties continue to loom.

For fiscal 2025, the company expects earnings per share between $13.80 and $14.40—a range aligned with analysts’ consensus of $14.29. Revenue is projected to land between $13.6 billion and $13.9 billion, in line with Wall Street estimates.

In the quarter ending May 3, Dick’s posted net income of $264 million, or $3.24 per share, slightly below last year’s $275 million. However, excluding one-time charges tied to its planned acquisition of Foot Locker, adjusted EPS came in at $3.37.

Revenue is up 5% year-over-year to $3.17 billion, surpassing expectations of $3.13 billion.

The company’s recent $2.4 billion deal to acquire Foot Locker is viewed as a strategic step to expand internationally and diversify its customer base.

While investors initially showed mixed reactions, Dick’s anticipates the merger will generate $100 million to $125 million in annual cost synergies and be accretive to earnings after the first full year post-close.

CEO Lauren Hobart noted that the retailer’s early-year momentum and strong operational execution underpin its optimism for the year ahead, even as it faces headwinds from tariffs and shifting consumer behavior.

DKS is up marginally by 0.45% in premarket trading.

Banking

Bank of Montreal Outperforms Despite Credit Concerns

Bank of Montreal (NYSE: BMO) delivered a stronger-than-expected earnings report for the recent quarter today morning, driven by growth across its business segments and firm capital management, even as credit loss provisions jumped significantly.

The Canadian banking giant posted adjusted earnings per share of $2.62, surpassing Wall Street’s estimate of $2.53. Net income came in at $2.05 billion, edging past the prior year’s $2.03 billion.

However, loan loss provisions surged to $1.05 billion from $705 million a year ago, reflecting mounting pressure in credit markets.

Despite this increase, the bank’s common equity tier 1 (CET1) capital ratio rose to 13.5%, indicating a strengthened financial buffer. Return on equity (ROE) dipped to 9.8% from 10.9%, though the overall performance signaled continued operational efficiency.

In a show of confidence, BMO raised its quarterly dividend by 3% to $1.63 per share and will repurchase 7 million common shares.

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Apparel Retail

Macy’s Beats Expectations Despite Profit Slide

Macy’s (NYSE: M) posted lower earnings and sales in the first quarter of 2025 today morning, yet its results are still higher than its internal forecasts, signaling resilience as it adjusts to a challenging retail landscape.

Net income for the quarter ending May 3 dropped to $38 million, or $0.13 per diluted share, from $62 million, or $0.22 per share, a year ago.

Revenue came in at $4.6 billion, a decline from $4.85 billion in the same period last year. Operating income also slipped to $94 million from $125 million.

Despite the downturn, the company emphasized that results came in ahead of guidance. CEO Tony Spring credited the progress to its "Bold New Chapter" strategy, which includes closing underperforming stores and enhancing customer experiences at its core locations.

While Macy’s held steady on its full-year sales forecast of $21 billion to $21.4 billion, it has cut its earnings outlook. The retailer now expects adjusted earnings between $1.60 and $2 per share, down from its prior range of $2.05 to $2.25.

Among its brands, Bloomingdale’s was a standout performer with a 3.8% increase in comparable sales, while Bluemercury saw a modest 1.5% gain. Core Macy’s stores lagged, with same-store sales falling 1.9%.

Macy’s stock is up nearly 3% in premarket trading.

Movers and Shakers

Spero Therapeutics, Inc. [SPRO] - Last Close: $0.68

Spero Therapeutics is a clinical-stage biopharmaceutical company whose lead candidate is tebipenem HBr, which targets complicated urinary tract infections (cUTIs).

Its shares are surging more than 200% in premarket trading today after its Phase 3 PIVOT-PO trial for tebipenem HBr was stopped early due to positive efficacy results, indicating strong potential for FDA approval.

My Take: The positive Phase 3 outcome could be a game changer for Spero. Its future, however, hinges on regulatory approvals and successful commercialization. So keep a close eye on how things progress on that front.

Brooge Energy Limited [BROG] - Last Close: $3.19

Brooge Energy operates oil storage facilities in Fujairah, UAE. After taking a massive plunge in profitability in 2023, its net profits have improved in 2024 and shares have gone up 100%+ YTD.

The stock is rising 50%+ in premarket trading today following news of an $871 million acquisition deal with Dubai-based Gulf Navigation Holding PJSC, which plans to acquire Brooge's assets and subsidiaries, including its oil storage facilities.

My Take: While the acquisition deal has provided a short-term boost to Brooge's stock, the company's recent financial losses and legal issues are problematic. Keep this stock on your radar and watch the profitability numbers closely.

Box, Inc. [BOX] - Last Close: $31.45

Box Inc. is a leading provider of cloud-based content management and collaboration solutions. The company has seen solid growth in both revenue and net earnings in recent years.

Its shares are rising 10% in premarket trading after it posted a Q1 revenue of $276.3 million, up from $264.7 million a year earlier, and non-GAAP earnings per share of $0.30, surpassing analyst expectations of $0.26.

My Take: Box's consistent performance and strategic focus on AI-driven content management position it well for sustained growth, making it an attractive option for those seeking exposure to enterprise software solutions.

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
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