Rite Aid, Coherent, RH, Nike and more

Take a look at some of the major engines on the premarket:

Rite Aid (RAD): Rite Aid expects to report a loss for its just-ended fiscal year, compared to analysts’ forecast of a profit of $ 125 million. The pharmacy chain was hit by a 37% drop in sales of cold, cough and flu-related products, as people suffered much less from these illnesses due to the pandemic-related closures. Shares of Rite Aid tumbled 18.6% in premarket stock.

Walgreens (WBA) – Shares of the pharmacy operator fell 2% in the previous market, possibly in sympathy with Rite Aid. Deutsche Bank also called the action a “catalyst call buying idea,” pointing to short-term problems, but saying the Covid vaccine could provide a positive opportunity for Walgreens in both the short and long term.

Darden Restaurants (DRI) – The parent company of Olive Garden and other restaurant chains reported quarterly earnings of 98 cents a share, well above the consensus estimate of 69 cents a share. Revenue also beat estimates, and although sales at the same restaurant fell 26.7% from a year earlier, it was a smaller drop than the 31.2% anticipated by analysts surveyed by FactSet. Shares of Darden rose 4.2% in premarket trading.

Coherent (COHR): Coherent has accepted an acquisition proposal from optical component manufacturer II-VI (IIVI), ending a lengthy bidding battle between II-VI and fiber optic company Lumentum (LITE). Coherent, a provider of lasers and related technology, approved the offer of $ 220 per share in cash and 0.91 II-VI shares for each share of Coherent, and will pay Lumentum a break-up fee of $ 217.6 million. II-VI fell 8%, while Lumentum was up 7.2% in the previous market.

RH (RH) – RH reported quarterly earnings of $ 5.07 per share, beating the consensus estimate of $ 4.76 per share. Restoration Hardware’s parent company also saw revenue beat analyst forecasts. RH reported strong demand for its high-end furniture and other luxury products, and expects revenue for the current quarter to grow at least 50%. Shares of RH were up 8.4% in the pre-market share.

KB Home (KBH) – KB Home beat estimates by 10 cents a share, with a quarterly profit of $ 1.02 per share. The home builder’s revenue fell short of analyst projections despite a 23% increase in net orders and a 4% increase in deliveries. KB Home shares fell 1.9% in premarket trading.

AstraZeneca (AZN) – The drugmaker said an updated analysis of its Covid-19 vaccine trial in the US showed an efficacy of 76%, compared with 79% in a report earlier this week. The previous report had not included more recent infections and came under some scrutiny by an independent data monitoring board.

Nike (NKE) – Nike has come under fire on Chinese social media for a statement in which the sportswear and apparel manufacturer said it was “concerned” by reports of forced labor in Xinjiang. Nike also said it does not source products from the region. The shares fell 4.5% in premarket trading.

HB Fuller (FUL) – HB Fuller reported quarterly earnings of 66 cents a share, 19 cents a share above estimates. Revenues also beat Wall Street forecasts. The manufacturer of adhesives, sealants and other industrial products saw particular strength in health and hygiene related products, although it saw a weakness in construction adhesives. Shares of Fuller were up 6.2% in pre-market share.

Royal Philips (PHG) – The healthcare technology company has reached an agreement to sell its Home Appliances unit to investment firm Hillhouse Capital for approximately $ 4.4 billion. The transaction includes Hillhouse’s right to use the Philips brand for 15 years, with the possibility of renewal. Philips shares rose 1.6% on the previous market.

Advanced Micro Devices (AMD): The chipmaker’s shares rose 1% in pre-market trading after Northland Capital Markets raised the shares to “outperform” from “market performance.” Northland called Intel’s (INTC) decision to re-enter the foundry business a “strategic misstep” and said AMD would benefit as a result.

ViacomCBS (VIAC) – The media company’s shares remain on alert after falling more than 30% in the last two sessions. That followed the company’s announcement that it would raise $ 3 billion through the sale of shares. It fell another 1.1% in the premarket.


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