Tiny Medical Device Stock Surging 400%

A tiny medical device stock is exploding 400% after FDA approval for expanded use of its flagship spinal implant, a spice giant is slipping after weak Q1 earnings, and a pork producer is sizzling post-IPO with a solid return to profitability. Read on to find out more.

Futures 📈

What to Watch

Earnings:

• GameStop Corporation [GME]: Aftermarket

• Worthington Enterprises, Inc. [WOR]: Aftermarket


• Noah Holdings Limited [NOAH]: Aftermarket

Economic Reports:

• S&P Case-Shiller home price index (20 cities) [Jan]: 9:00 a.m.

• Consumer confidence [March]: 10:00 a.m.

• New home sales [Feb]: 10:00 a.m.

Food

Spice Maker McCormick Falls Short on Q1 Earnings, Shares Decline

McCormick & Co. (NYSE: MKC) shares are down 3.5% in early trading today after the company reported disappointing first-quarter earnings that are below Wall Street expectations.

For the quarter ended February 28, McCormick’s adjusted earnings per share of $0.60 is short of the $0.64 consensus estimate.

Revenue is at $1.61 billion, aligning with forecasts, but has no year-over-year growth.

The company is reporting a 2% volume increase, offset by a 2% hit from foreign exchange rates.

Sales in the Consumer division rose 1% organically, while the Flavor Solutions segment saw 3% organic growth.

Operating income dipped 3.6% to $225 million, largely due to higher spending on brand marketing and digital transformation efforts.

However, McCormick’s gross profit margin improved slightly by 20 basis points to 37.6%, supported by productivity initiatives.

Despite the earnings shortfall, the spice and seasoning giant reiterated its full-year 2025 forecast, projecting adjusted EPS between $3.03 and $3.08, in line with analysts' expectations.

The company continues to anticipate 1% to 3% organic sales growth for the year.

As per CEO Brendan Foley, the company is navigating a “dynamic environment” while staying focused on delivering consistent performance and long-term growth.

Food

Smithfield Foods Rises After Rebounding From Loss With Solid Q4 Profit

Shares of Smithfield Foods (NASDAQ: SFD) are climbing in early trading as the company posts its first earnings report since going public earlier this year.

The Virginia-based pork producer delivered stronger-than-expected results and issued a positive forecast for the year ahead.

For the fourth quarter ended December 29, Smithfield reported a profit from continuing operations of $211 million on $3.95 billion in revenue, swinging from a $131 million loss a year earlier when sales were slightly higher at $4 billion.

The results are at the upper end of the company's preliminary guidance shared in its IPO filing.

Looking ahead to fiscal 2025, Smithfield projects adjusted operating profit between $1.1 billion and $1.3 billion, up from $1.02 billion in 2024.

Sales are expected to grow by a low- to mid-single-digit percentage from last year’s $14.14 billion.

Smithfield, once publicly listed before its 2013 acquisition by China’s WH Group, returned to the markets through an IPO in January.

WH Group retains a 90% ownership stake.

Shares are up 3.5% and are now trading just shy of their IPO opening price.

The stock also saw a 3% boost Monday after being added to the Russell 1000 Index, reflecting growing investor confidence in the company’s return to public markets.

Technology (Sponsored)

Elon’s New Tech Could Be Bigger Than Tesla & SpaceX… Combined

Forget rockets or brain implants…

Elon’s new AI product could be his biggest invention yet.

Jeff Brown tried it himself recently and caught his experience on camera.

Click here to see this footage because according to Tesla Magazine, this new product “could well shape the technological and economic future of our society.”

Autonomous Vehicles

Pony.AI Reports Sharp Q4 Loss as Development Costs Surge

Pony.ai (NASDAQ: PONY) reported a sharply higher net loss for the fourth quarter as the Chinese autonomous driving firm ramps up spending on next-generation vehicle development following its U.S. public listing.

This morning, the company posted a Q4 net loss of $180.9 million, up significantly from a $20.6 million loss in the same period last year.

Revenue for the quarter is down 30% year-over-year to $35.5 million, driven by a drop in robotaxi service revenue and delays in project-based billing recognition.

Revenue from robotaxi operations has plunged 62% to $2.6 million due to lower service fees, while revenue from its autonomous truck services is up 73% to $12.9 million as the fleet expanded into new regions.

Pony.ai attributes much of its widened loss to a near fivefold increase in research and development costs, which climbed to $147.8 million.

The surge includes higher share-based compensation following the firm’s IPO and investments tied to scaling its Gen-7 robotaxi models.

Fourth-quarter gross margin narrowed to 21.0% from 33.9% a year earlier, reflecting changes in revenue composition.

Despite mounting losses, CEO James Peng reiterated the company's target to launch over 1,000 robotaxis this year, calling 2025 a turning point for commercial deployment.

Tenon Medical, Inc. [TNON] - Last Close: $0.98

Tenon Medical is a medical device company specializing in sacroiliac (SI) joint disorders.

Their flagship product is the Catamaran SI Joint Fusion System, which offers a less invasive approach to SI joint fusion using a single titanium implant.​

The company's stock is surging more than 390% following the U.S. FDA’s clearance of an expanded indication for the Catamaran system.

Predictive Oncology Inc [POAI] - Last Close: $1.12

Predictive Oncology uses AI/ML to accelerate drug discovery.

Its shares are surging 26% in early trading after the company announced successful development of predictive models for AI-driven drug discovery efforts in breast, colon, and ovarian cancers.

Power Solutions International, Inc. [PSIX] - Last Close: $29.83

Power Solutions International designs, engineers, and manufactures advanced clean-tech power systems.

Its shares are rising 13% today after PSIX posted strong Q4 results, with adjusted earnings of $1.03 per share—well above estimates—and a 38% year-over-year jump in revenue to $144.3 million.

Elon’s Radical Plan (Sponsored)

The DOGE Agenda (Eight Stocks to Buy)

Every investor in America is trying to figure out what Musk will do in Washington, D.C., in the coming weeks.

One Boston-based think tank – who has studied Elon’s work for decades – is stepping forward to share what they’ve found.

They believe his TRUE plan is far more radical than anyone realizes. It could change the way you live, work, get paid, and collect Social Security…

...AND could make more people rich than all of Elon's previous ventures – PUT TOGETHER.

Full story here.

Everything Else

• India offers tariff reductions on over half of US imports in a bid to avoid trade penalties.

• Tesla rebounds as reports suggest Trump’s auto tariffs may be less severe.

• Trump announces Hyundai’s major U.S. investment, including a Louisiana steel plant.

• Xiaomi secures billions for an expansion but sees stock decline in Hong Kong.

• Skyx’s stock fluctuates as smart home sales soar but earnings fall short.

• KB Home misses profit estimates as its first-quarter income drops.

• Oklo reports Q4 losses as it expands its nuclear reactor capabilities.

• Strong cash position and NASA deals boost Intuitive Machines’ shares.

• Strong sales growth helps Enerpac Tool Group surpass revenue forecasts.

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

Best Regards,

— Adam Garcia
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.

*Standard message/carrier rates may apply.

Legal Stuff: Stocks featured in this newsletter are for entertainment purposes only. You should not base any investment decisions on information contained in my newsletter. Stocks featured in this newsletter may be owned by owners/operators of this website, which could impact our ability to remain unbiased. Please consult a financial advisor before making any trading decisions. I may earn a small commission from links placed inside these emails.