Several companies made headlines before the bell, with Bowlero leading the pack with shares gaining over 12%. The bowling alley chain reported fourth-quarter revenue of $283.9 million, surpassing Wall Street’s expectations of $273.4 million. Additionally, Bowlero’s revenue outlook for fiscal 2025 was also above estimates. UiPath saw its stock rise more than 8% after the software company posted better-than-expected second-quarter results. The company reported adjusted earnings of 4 cents per share on $316 million in revenue, exceeding analysts’ expectations of 3 cents per share and $304 million in revenue. UiPath also raised its full-year forecast and expanded its stock repurchase program.
Broadcom, on the other hand, saw its shares fall 7% as the chipmaker’s revenue guidance for the current quarter was lower than expected. The company projected $14 billion in revenue for its fiscal fourth quarter, slightly below the $14.04 billion estimated by analysts. Despite this, Broadcom beat third-quarter estimates on the top and bottom lines. Smartsheet experienced a more positive response from investors, with shares moving over 4% higher after the work management software company’s second-quarter earnings beat estimates. Smartsheet reported adjusted earnings of 44 cents per share on revenue of $276.4 million, above analysts’ expectations of 29 cents per share and $274.2 million in revenue. Reuters reported that Vista and Blackstone are in talks to buy Smartsheet, further boosting investor confidence.
Super Micro Computer’s stock slipped 2.5% after JPMorgan downgraded the artificial intelligence server producer to neutral from overweight. The bank also cut its price target significantly, citing uncertainty around regaining compliance as a reason not to buy shares. On the flip side, Guidewire Software saw its shares jump over 7% after surpassing the Street’s expectations. The company reported earnings of 62 cents per share, excluding items, and revenue of $291.5 million, beating analysts’ estimates of 54 cents per share and $283.8 million in revenue. Samsara also experienced a positive response from investors, with shares popping over 5% after the software company’s full-year forecast exceeded expectations. Samsara estimated adjusted earnings of between 16 cents and 18 cents per share and revenue of $1.224 billion to $1.228 billion, above the consensus estimate of 13 cents per share on revenue of $1.21 billion.
Overall, the companies making headlines before the bell exhibited a mix of positive and negative reactions from investors. While some stocks, like Bowlero and UiPath, saw gains due to better-than-expected earnings and outlook, others, such as Broadcom and Super Micro Computer, faced declines in share prices. Smartsheet and Guidewire Software also performed well, beating estimates and generating investor interest. The news of potential acquisitions, like the reported talks between Vista, Blackstone, and Smartsheet, added to the market’s reaction. Samsara’s strong full-year forecast also contributed to the positive sentiment among investors. As the market continues to react to these developments, it remains to be seen how these companies will fare in the coming quarters.
