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Good morning friends!
Futures are falling as traders digest the latest batch of weak earnings and a key meme stock announced plans for a reverse stock split.
Let’s get right to it!
AMC (AMC) shares are plunging 25.5% in premarket trade after announcing plans for a reverse stock split.
The theater chain revealed it is seeking a special shareholder meeting to vote on a 1-for-10 stock split and to convert APE units into AMC common shares.
$APE are the preferred equity units issued by AMC to all shareholders earlier this year.
The company also plans to raise $110 million in capital by selling APE units to Antara Capital at a weighted average price of $0.66 per share.
AMC also plans to reduce its debt to Antara by $100 million in exchange for approximately 91 million APE units.
The company said that debt reduction would reduce annual interest expenses by ~$10 million.
Micron (MU) shares are down 4.5% ahead of the open after reporting a wider-than-expected fiscal Q1 loss.
Here’s how the chipmaker’s results compared to analysts’ expectations:
Revenue plunged 47% year over year and Micron warned that would worsen in the next quarter.
The company’s forecast also came in weaker than expected.
Micron expects an adjusted loss between $0.72 and $0.52 per share in fiscal Q2 on revenue of $3.6 billion to $4 billion.
The midpoint of that revenue outlook would be 51% lower than a year ago.
Analysts were forecasting a fiscal Q2 loss of $0.32 per share on $3.92 billion in revenue.
In an SEC filing, Micron disclosed that management plans to cut about 10% of staff in 2023 with about $30 million in restructuring costs expected in fiscal Q2.
CarMax (KMX) shares are tumbling 13.7% in premarket trade after missing Q3 expectations.
Here’s how the used car retailer’s results compared to analysts’ expectations:
Revenue was down nearly 24% year over year as CarMax said “vehicle affordability challenges” continued to impact its sales.
Under Armour (UAA) shares are 1.1% lower ahead of the open after naming its new CEO after-hours on Wednesday.
The company announced it has hired Marriott International (MAR) President Stephanie Linnartz to be its next CEO.
Linnartz was one of 60 candidates considered for the role during a seven-month search.
Under Armour is focused on growing its digital business.
The founder and Executive Chairman told CNBC Linnartz was chosen due to her success in transforming Marriott’s online presence.
She will take over from the interim CEO on February 27.
Weekly jobless claims rose less than expected last week.
The Labor Department reported 216,000 Americans filed initial claims for unemployment benefits.
That was up by 5,000 from the previous week but lower than expectations for 220,000.
The U.S. economy expanded more than previously estimated in the third quarter.
The Commerce Department’s final revision of GDP growth increased to 3.2% from 2.9%.
That was an unexpected increase as consumer spending, nonresidential fixed investment, and state and local government spending were revised higher.
Private inventory investment and exports were revised lower.