Tiny Pharma Stock Packing on 68% After Obesity Drug Deal

Author

Adam Garcia
May 14, 2025

A software firm is surging after posting strong subscription growth and upbeat guidance, a fashion retailer is tumbling 13% after pulling its 2025 outlook, and a biotech stock is up 63% on a $2.2B obesity drug deal. Here’s the inside scoop on today’s big movers.

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Futures 📈

What to Watch

Earnings:

  • Cisco Systems, Inc. [CSCO]: Aftermarket

  • CoreWeave, Inc. [CRWV]: Aftermarket

  • Steris plc [STE]: Aftermarket

  • Nextracker Inc. [NXT]: Aftermarket

  • Boot Barn Holdings, Inc. [BOOT]: Aftermarket

Economic Reports:

  • Fed Governor Christopher Waller speech: 5:15 am

  • Fed Vice Chair Philip Jefferson speech: 9:10 am

  • San Francisco Fed President Mary Daly speech: 5:40 pm

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Software

Dynatrace Surges on Subscription Growth and Revenue Beat

Software intelligence firm Dynatrace (NYSE: DT) is up 2% in premarket trading after posting stronger-than-expected earnings and revenue for the fourth quarter and delivering an optimistic outlook for fiscal 2026.

The company reported earnings of $0.33 per share, topping analyst estimates by $0.03. Quarterly revenue reached $445 million, beating the consensus forecast of $434.96 million and marking a 17% year-over-year increase—or 19% in constant currency terms.

Subscription revenue, which accounts for the bulk of Dynatrace’s business, rose 18% year-over-year to $423.6 million, while total annual recurring revenue climbed 15% to $1.73 billion.

CEO Rick McConnell credited broad platform adoption for the strong finish to fiscal 2025, stating that the company exceeded guidance across all key metrics.

Looking ahead, Dynatrace expects Q1 2026 revenue between $465 million and $470 million, above the $454.2 million analyst consensus. It also guided earnings per share between $0.37 and $0.38, surpassing the expected $0.35.

For the full fiscal year, Dynatrace anticipates revenue of $1.95 billion to $1.965 billion and EPS in the range of $1.56 to $1.59—both above Wall Street forecasts.

Clothing

American Eagle Shares Plunge After Pulling 2025 Outlook

American Eagle Outfitters (NYSE: AEO) stock is down 13% in premarket trading today after the company withdrew its full-year forecast and warned of disappointing first-quarter performance.

The apparel retailer said revenue for Q1 is expected to fall about 5% year-over-year, with comparable-store sales down around 3%. That marks a deeper decline than previously projected. In March, the company had anticipated a mid-single-digit revenue drop and a modest full-year decrease.

The earnings miss was blamed on underwhelming results from its merchandising strategy and a sharp increase in discounting. American Eagle also flagged a $75 million inventory write-down related to unsold spring and summer merchandise, highlighting weaker-than-expected seasonal demand.

CEO Jay Schottenstein acknowledged the quarter fell short of expectations, stating, “We are clearly disappointed with our execution in the first quarter.” The retailer had earlier expressed hope that sales trends would improve heading into spring, but those gains failed to materialize.

American Eagle’s stock, already down 24% year-to-date before Tuesday’s close, is now hovering near 2025 lows.

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Pharmaceuticals

Septerna Lands Major Collaboration With Novo Nordisk, Shares Surge 68%

Septerna (NASDAQ: SEPN) shares are surging 60%+ in premarket today after it announced a major global licensing and development agreement with Novo Nordisk (NYSE: NVO) focused on advancing oral treatments for obesity and other cardiometabolic disorders.

The partnership will leverage Septerna’s expertise in G protein-coupled receptor (GPCR) drug discovery and Novo Nordisk’s established presence in metabolic disease therapies.

Together, the companies will launch four development programs targeting key GPCRs, including GLP-1, GIP, and glucagon receptors—critical regulators of metabolic function.

Under the terms of the deal, Septerna could receive up to $2.2 billion, including over $200 million in upfront and near-term milestone payments. The agreement also includes tiered royalties on future global net sales.

This collaboration significantly validates Septerna’s Native Complex Platform™, designed to unlock the therapeutic potential of GPCRs—a receptor class central to many biological processes yet still underutilized in drug development.

The deal gives Septerna the financial and operational flexibility to pursue its broader GPCR pipeline while benefiting from Novo Nordisk’s commercialization power. The agreement is expected to close in the second quarter, pending regulatory clearance.

Movers and Shakers

Everus Construction Group, Inc. [ECG] - Last Close: $51.42

Everus Construction Group is a U.S.-based infrastructure and industrial construction firm. As of last closing, stock is currently 22% down YTD and its revenue and net margins have been stagnant in the last 2 years.

ECG is surging 16% in premarket trade after it reported Q1 earnings per share of $0.72 on revenue of $826.6 million, surpassing analyst expectations of $0.43 EPS and $676.35 million in revenue.

The company also reported a backlog of $3.1 billion, up 10% from December 31, 2024, and up about 41% from March 31 of last year.

My Take: ECG’s Q1 results and substantial backlog growth suggest that it is coming out of the rut it has been in recently. It might be a good idea to keep tabs on whether it can sustain the growth in coming quarters.

Super Micro Computer, Inc. [SMCI] - Last Close: $38.89

Super Micro Computer is a provider of high-performance server and storage systems. The firm’s revenue nearly doubled in 2024, and net margins rose from $600M to $1.15B. SMCI is up 25% YTD.

The stock is up 16% in premarket today because analyst Raymond James has initiated an "Outperform" rating on it, after the company reported Q1 revenues of $5.94 billion, up 180% year-over-year, with net income nearly tripling to $424.3 million.

My Take: Supermicro has faced challenges, including accounting investigations and supply chain issues in the past. However, its strong position in the growing AI server market suggests potential for long-term growth. Keep a close eye on the stock.

Nutex Health Inc. [NUTX] - Last Close: $125.93

Nutex Health is a physician-led healthcare company operating micro-hospitals and managing provider networks across the U.S. The stock has surged over 290% in the last 6 months.

NUTX is up 11% in premarket trading after it reported a Q1 net income of $14.6 million and revenue of $211.8 million, a 213.8% increase year-over-year. Its Q4 revenues had also seen a significant increase in both revenue and net income.

My Take: Its micro-hospital model is an innovative take on healthcare. The recent growth in revenue and incomes suggest that the model is working, though it remains to be seen how well it will hold in the long term.

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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
Elite Trade Club

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