| | | | A clean energy stock is soaring 87% after securing major government funding, a facility management giant is boosting its full-year profit forecast, and a cloud services company is soaring on its upbeat 2025 outlook. Here’s what’s moving the market today. | |
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| | | | | What to Watch | Earnings: | Adobe Inc. (ADBE): Aftermarket Crown Castle Inc. (CCI): Aftermarket UiPath, Inc. (PATH): Aftermarket SentinelOne, Inc. (S): Aftermarket American Eagle Outfitters, Inc. (AEO): Aftermarket Sprinklr, Inc. (CXM): Aftermarket | Economic Reports: | Consumer price index [Feb]: 8:30 a.m. Core CPI [Feb]: 8:30 a.m. Monthly U.S. federal budget [Feb]: 2:00 p.m. |
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| | Facility Management | ABM Industries Beats Revenue Estimates, Boosts Full-Year Earnings Guidance | | ABM Industries (NYSE: ABM) increased its full-year profit outlook and reported solid revenue growth in the first quarter of fiscal 2025. | Shares of the facility management company are up 1% in premarket trading. | For the quarter ending January 31, ABM reported net income of $43.6 million, or $0.69 per share, slightly down from $44.7 million, or $0.70 per share, a year earlier. | Adjusted earnings per share are at $0.87, exceeding analyst expectations of $0.78. | Revenue is up 2.2% year-over-year, reaching $2.11 billion and surpassing forecasts of $2.09 billion. | The company credited its technical solutions and aviation segments for driving growth, with its microgrid service line expanding significantly and aviation benefiting from increased market demand and new contracts. | Despite slight declines in its business & industry and manufacturing & distribution divisions, CEO Scott Salmirs highlighted resilience despite industry headwinds. | Given its strong performance, ABM raised the lower end of its full-year adjusted EPS guidance from $3.60 to $3.65, maintaining the upper range at $3.80. | Analysts estimate the full-year adjusted EPS to be $3.73. | The company expects continued growth in 2025, supported by a 24% sequential rise in U.S. commercial office leasing during Q4. |
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| | Data Centers | VNET Group Exceeds Revenue Expectations and Projects Solid 2025 Growth | | VNET Group, Inc. (NASDAQ: VNET) reported fourth-quarter 2024 revenue that is above analyst expectations, driven by strong growth in its wholesale internet data center (IDC) business. | For the quarter ending December 31, VNET’s revenue is RMB2.25 billion ($307.8 million), surpassing analyst estimates of RMB2.06 billion. | This marks an 18.3% increase from RMB1.90 billion in the same period last year. | The company’s stock is climbing 7.4% in premarket trading due to the strong revenue beat. | However, adjusted earnings per share are RMB0.06, falling short of the expected RMB0.11. | CEO Josh Sheng Chen highlighted the strength of the wholesale IDC segment, which saw a 125.4% year-over-year surge in revenue to RMB665.2 million ($91.1 million). | Meanwhile, retail IDC revenue is down slightly by 1.1% to RMB964.8 million ($132.2 million). | Adjusted EBITDA is up by 63.8% year-over-year to RMB721.3 million ($98.8 million), supported by a RMB87.7 million ($12 million) gain from a data center sale. | The adjusted EBITDA margin has expanded to 32.1% from 23.2% a year earlier. | For 2025, VNET forecasts revenue between RMB9.1 billion and RMB9.3 billion, exceeding analyst expectations of RMB9.07 billion. | The projection indicates a 10-13% year-over-year growth. |
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| | | | Shipping | ZIM Integrated Shipping Posts Strong Q4 Profit, Shares are Up 4.5% | | ZIM Integrated Shipping Services (NYSE: ZIM) posted a significant turnaround in its fourth-quarter earnings, reporting a profit of $4.66 per diluted share, a sharp contrast to the $1.23 loss recorded in the same period last year. | The company’s stock is up 4.5% in premarket trading following the strong results. | The shipping giant’s revenue for the quarter ending December 31 climbed to $2.17 billion, a substantial increase from $1.21 billion a year earlier. | The results outperformed analyst expectations. FactSet had projected earnings per share of $3.49 and revenue of $2.03 billion. | ZIM’s strong performance comes amid an improving market for global shipping, with demand recovery and pricing stability helping boost revenue. | The company has been focusing on operational efficiencies and strategic cost management to enhance profitability. | With a solid Q4 performance, ZIM enters 2025 on a strong footing, aiming to sustain growth despite ongoing volatility in global trade dynamics. |
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| | Movers and Shakers | | Vast Renewables Limited [VSTE] - Last Close: $0.50 | Vast Renewables Limited is an Australian clean energy company focused on concentrated solar thermal power (CSP) solutions. | Its stock is up 87% in premarket trading after securing up to AUD180 million ($113M) in funding from the Australian Renewable Energy Agency (ARENA) for its Port Augusta clean energy project. | My Take: The long-term growth prospects of VSTE have certainly improved due to this government funding. However, the firm is struggling with profitability and its stock has declined 56% YTD. Be cautious before investing here. |
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| Synchronoss Technologies, Inc. [SNCR] - Last Close: $7.13 | Synchronoss Technologies, Inc., is a cloud and digital platform provider. | Its shares are surging over 25% in early trade after it reported a swing to profitability in Q4, posting non-GAAP earnings of $0.94 per share that far exceeded analysts' expectations of $0.10. | My Take: The company has also provided a solid sales outlook for 2025. However, questions remain regarding continued profitability given performance in recent quarters. Keep an eye on whether SNCR can sustain this momentum. |
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| Groupon, Inc. [GRPN] - Last Close: $9.77 | Groupon, Inc., is an e-commerce marketplace offering deals on local services, goods, and experiences. | Its stock is surging 18% before the opening bell after Groupon provided a stronger-than-expected FY2025 revenue forecast, projecting $493 million to $500 million, which is above Wall Street estimates. | My Take: While the revenue beat is encouraging, Groupon still faces challenges in sustaining long-term growth. The stock is down 20% YTD and has been struggling to maintain positive margins. Keep this on your wait and watch list for now. |
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| | Technology (Sponsored) | | | The Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—have redefined market leadership. | But as their record-breaking growth slows, the focus shifts to the next generation of industry leaders. | Analysts have identified seven global companies with the potential to rise above the rest in 2025. | These stocks are poised to surge, fueled by growing market share, robust cash flows, and innovative strategies that set them apart from the competition. | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) | Position yourself to capture the next wave of market-defining opportunities. | Click here to uncover the “7 Stocks That Will Be Magnificent in 2025” before the market catches on. | (By clicking the link above, you will get this free report and a free subscription to MarketBeat's daily email newsletter. You are also agreeing to the terms of our privacy policy. Unsubscribe at any time.) |
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| | | | 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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