Wayfair Surges 14% While Chevron and Exxon Beat Estimates

Author

Adam Garcia
November 01, 2024

Good morning. It's November 1st, and today we bring you good news all around as Wayfair, Chevron, and Exxon are all rising in premarket trade after better-than-expected earnings reports.

Previous Close 📈

Stocks had a tough session on Thursday, with the S&P 500 and Nasdaq Composite posting major losses, weighed down by declines in Microsoft and Meta following their earnings reports. The Dow dropped over 300 points, ending October on a down note.

Futures

Nasdaq 100 futures are up today as investors assess recent tech earnings, particularly Amazon and Intel, which both exceeded expectations. Dow futures are up 47 points (0.11%), and S&P 500 futures have gained 0.2%. Investors are now focused on the jobs report due to be released today.

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What to Watch

Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Cardinal Health (NYSE: CAH), Wayfair (NYSE: W), Enbridge (NYSE: ENB), and Dominion Energy (NYSE: D) will report their quarterly earnings before the opening bell today.

At 8:30 a.m. ET, the U.S. Nonfarm Payrolls for September, the U.S. Unemployment Rate, and Average Hourly Wages Year-over-Year will be released. Additionally, the S&P Manufacturing PMI Final will be published at 9:45 a.m. ET, followed by the ISM Manufacturing PMI at 10:00 a.m. ET.

Retail

Wayfair Rallies on Strong Order Value, Beating Q3 Profit Forecasts

Wayfair’s stock is surging 14.4% in premarket trading.

The online home goods retailer’s third-quarter earnings are better than Wall Street expectations, despite ongoing sector challenges. The company’s net loss of $74 million, or 60 cents per share, is an improvement from the $163 million loss, or $1.40 per share, in the same quarter last year.

Excluding one-time items, Wayfair’s adjusted earnings per share is 22 cents, significantly surpassing estimates.

Revenue is 2% lower than last year at $2.884 billion but is still above the forecasted $2.875 billion. While active customers decreased by 2.7% to 21.7 million, below the projected 22.5 million, average order value increased by 4.4% to $310, topping expectations of $298.68.

CEO Niraj Shah emphasized Wayfair’s resilience in the challenging home goods sector, noting the company’s continued market share growth. Despite challenges, including reduced customer activity, Wayfair’s focus on increasing order value and cost management has bolstered its performance.

The stock’s strong performance today contrasts with its 30.6% year-to-date decline, even as the S&P 500 has risen by 19.6%.

Energy

Exxon Mobil Reports Strong Q3 Earnings, Raises Dividend Despite Revenue Miss

Exxon Mobil’s third-quarter earnings reported today are higher than analyst expectations, with an earnings per share (EPS) of $1.92, slightly above the forecasted $1.89.

However, the company’s quarterly revenue of $90.02 billion is below the $94.24 billion anticipated by analysts. Exxon shares are currently trading approximately 1% higher in premarket trading.

Despite the revenue miss, Exxon’s performance was bolstered by robust operating cash flow of $17.6 billion and a free cash flow of $11.3 billion.

Chairman and CEO Darren Woods highlighted the strength of this quarter, describing it as one of the company’s best in a decade. Woods attributed Exxon’s industry-leading results to its ongoing structural transformation aimed at enhancing long-term profitability.

The company reported capital and exploration expenditures of $7.2 billion for the third quarter, bringing total 2024 expenditures to $20 billion, in line with its full-year target of $28 billion. In addition, Exxon announced a 4.2% increase in its quarterly dividend, raising it to 99 cents per share.

Energy

Chevron Beats Estimates with Higher Production Amid Industry Challenges

Chevron reported better-than-expected third-quarter earnings today, driven by a 7% year-over-year increase in oil and gas production and cost-cutting measures. The oil giant’s quarterly profit of $4.53 billion is better than Wall Street’s forecast of $2.42 per share, with reported earnings of $2.51 per share.

The stock is trading nearly 2.5% above yesterday’s closing in premarket trading.

Despite this, earnings were down from the $5.72 billion reported last year, reflecting industry-wide impacts of lower oil prices and reduced fuel demand growth.

Oil prices have been softer this year, with oil futures in Q3 averaging 17% below the previous quarter, while excess global fuel supplies have also placed pressure on profit margins. Chevron, alongside peers such as BP, TotalEnergies, and Exxon Mobil, faces the effects of a slower demand environment.

Chevron's proposed $53 billion acquisition of Hess, aimed at bolstering its production capabilities, has encountered delays due to objections from Exxon Mobil and CNOOC Ltd.

However, the company’s increased production volumes and strategic cost reductions have helped it navigate a challenging market, surpassing analyst expectations even as broader industry profits continue to face headwinds.

Semiconductors

Intel Shares Surge Amid Better-than-Expected Q3 Results and Upbeat Q4 Forecast

Intel’s stock is surging over 7.5% in pre-market trading today after its stronger-than-expected third-quarter results and optimistic fourth-quarter outlook.

The company’s revenue of $13.3 billion is much higher than the $13.02 billion forecast from Wall Street, despite a 6% decline from last year.

Key contributors to the positive performance are Intel’s data center and artificial intelligence (AI) divisions, whose combined $3.35 billion revenue is higher than analyst expectations of $3.15 billion.

Looking ahead, Intel provided an encouraging fourth-quarter outlook, projecting revenue in the range of $13.3 billion to $14.3 billion, surpassing Wall Street’s anticipated $13.63 billion.

The company also forecasted adjusted earnings per share of $0.12, nearly double the analyst prediction of $0.063, signaling confidence in its strategic focus areas, particularly in data centers and AI.

Intel’s continued progress in these high-growth sectors has bolstered investor sentiment, even as the company works to regain ground in a competitive semiconductor industry.

Political Power Plays

We already know Trump has vowed to "drill, baby, drill," which would be beneficial for domestic oil companies.

Cryptocurrencies could also do well, especially with Trump's pro-crypto running mate, Senator J.D. Vance. Plus, Trump is also bullish on cryptocurrencies, referring to himself as pro-crypto.

If you believe Vice President Kamala Harris will win the election, you may want to invest in all things green. That includes green energy and cannabis.

Movers and Shakers

Protolabs [PRLB] - Last Close: $27.40

Protolabs' stock is up 19% in premarket trading today after the company reported strong Q3 2024 earnings.

Despite a slight year-over-year revenue dip, Protolabs brought in $125.6 million, with GAAP earnings per share at $0.29 and non-GAAP EPS at $0.47, both beating market expectations.

The Protolabs Network shows robust growth, with revenue up 11.6% from Q3 2023, highlighting an expanding customer base.

High operational cash flow, solid gross margins, and a strong cash balance are boosting investor confidence and leading to the gains.

My Take: PRLB is coming off a downtrend, but the latest quarterly results statement might send it back up. Keep this stock in your wait-and-watch bucket.

Pro-Dex, Inc. [PDEX] - Last Close: $31.02

Pro-Dex shares are up 19% in premarket trading after the company reported strong Q1 2025 results.

Net sales increased by 25% year-over-year to $14.9 million, driven by higher repair volumes for its surgical handpiece and initial shipments of a next-generation handpiece for its largest customer.

The improved product mix helped lift gross margin to 35%, boosting gross profit by 41%.

Net income rose to $2.5 million, or $0.75 per diluted share, compared to a net loss of $615,000 last year, supported by unrealized gains on marketable investments.

CEO Rick Van Kirk expressed optimism for continued growth, with production volumes of the new handpiece expected later in the fiscal year.

My Take: PDEX is already surging 76.25% YTD on the back of strong revenue growth this year. This is an excellent stock to keep on your watchlist for future growth.

Atlassian [TEAM] - Last Close: $188.54

Atlassian is up 21.46% in premarket trading after the software company posted better-than-expected Q1 results and raised its fiscal 2025 outlook.

For Q1, Atlassian reported earnings of $0.77 per share, surpassing the expected $0.65, with revenue hitting $1.18 billion, slightly above estimates.

The company forecasted revenue growth of 16.5% to 17% for fiscal 2025, reflecting strong demand, particularly in subscription services, which saw a 33% year-over-year increase.

The company’s $1.5 billion share repurchase program, announced in September, also highlights confidence in future performance and supports shareholder value, fueling additional investor optimism.

My Take: TEAM hasn’t had the best of years, falling 16.82% YTD. It would be best to keep this stock on your wait-and-watch list for now.

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Everything Else

  • Reckitt Benckiser shares jumped after it won its baby formula trial in the U.S.

  • Apple’s Q4 profit slipped amid an Irish Tax charge, but services revenue hit a record high.

  • Tesco shareholders will benefit from a £700 million share buyback following its banking business sale.

  • Strong overseas travel demand prompted Air Canada to raise its core profit forecast.

  • Trafigura consortium acquired ExxonMobil's Fos-sur-Mer refinery and two oil terminals in France.

  • The Middle East conflict fueled an oil rally amid reports of fresh Iranian threats against Israel.

  • The union endorsed Boeing's latest offer with a pay raise and bonus as the strike nears crucial vote.

  • A private survey found China's factory output has returned to growth in October.

  • ASEAN gained from U.S.-China tariffs, but fragmentation poses challenges, says the IMF.

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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