Premarket trading saw sharp moves across sectors, led by big swings in individual earnings and company-specific headlines. Smith & Wesson shares jumped after results beat expectations, while Lululemon slid on a weaker-than-expected outlook. In parallel, rare-earth stocks gained after a Reuters report said some Chinese firms paused U.S. shipments amid geopolitical concerns.
Key takeaways
- Smith & Wesson shares rose 11.7% after the firearms maker reported an earnings and revenue beat and issued results that outperformed what analysts expected.
- Lululemon shares fell 20% following guidance for the current quarter that came in below analyst expectations.
- Rare-earth stocks gained as investors reacted to a Reuters report that some Chinese firms halted U.S. shipments for geopolitical reasons.
- Several software and cybersecurity names moved on earnings and guidance, with declines in Asana and Guidewire and gains in Planet Labs and Samsara.
- AMC and Robinhood-related headlines drove sentiment, with AMC shares up 5.5% after its CEO criticized Robinhood’s stock token offerings and Robinhood shares down nearly 2%.
What drove the biggest premarket moves
Smith & Wesson outperformed on earnings and sales. The company reported quarterly earnings of 6 cents per share versus the 6-cent loss expected by analysts surveyed by FactSet. Revenue came in at $112.6 million, compared with the $98.7 million consensus estimate. The stock reaction reflected the gap between expectations and actual performance, signaling stronger operating momentum entering the new quarter.
Lululemon’s forecast disappointed. Lululemon shares fell after the company issued what the market viewed as a cautious outlook. The company projected earnings for the current quarter in a range of 93 cents to 98 cents per share on revenue of $2.29 billion to $2.32 billion. Analysts expected $2.40 per share and $2.53 billion, and the premarket drop suggests investors prioritized the variance between guidance and consensus.
Rare-earth stocks tracked geopolitical supply-risk headlines. Shares of rare-earth companies rose after a Reuters report said some Chinese firms halted U.S. shipments due to geopolitical concerns. USA Rare Earth and Critical Metals added roughly 4%, while MP Materials and Energy Fuels rose about 3%. The move underscores how quickly investors can reprice supply-chain risk in materials tied to industrial and defense demand.
Market reaction across software, security and business platforms
Planet Labs jumped on stronger second-quarter results. Planet Labs advanced 13% after posting adjusted earnings of 2 cents per share on revenue of $116.1 million. Analysts polled by FactSet were looking for a loss of 2 cents per share and $104.5 million in revenue, and the stock’s premarket surge indicates the beat broadened beyond just profitability.
Samsara surged on full-year guidance that beat estimates. Samsara climbed 15% on rosy projections. The company forecast full-year revenue of $2.04 billion to $2.05 billion, topping the $2.01 billion LSEG consensus estimate. It also guided for adjusted earnings of 76 cents to 78 cents per share versus an expected 72 cents per share, a combination that tends to attract investors focused on both growth and earnings quality.
Asana slid after guidance failed to impress. Asana dropped 9.5% after it provided third-quarter guidance that didn’t meet investor expectations. The company expects third-quarter revenues of $217 million to $219 million and adjusted earnings of 8 cents per share, while analysts polled by LSEG were looking for 9 cents per share and $218 million in revenue. Even small misses on earnings expectations can weigh on stocks when the market is scrutinizing forward performance.
Guidewire fell as revenue guidance lagged. Guidewire tumbled 14.5% after its current-quarter revenue outlook came in below expectations. The company expects revenue between $372 million and $378 million, compared with the LSEG consensus estimate of $387 million. The sizable gap suggests the market is reacting not only to reported results but also to the durability of subscription growth implied by management’s outlook.
Zscaler moved lower despite a results beat. Zscaler’s stock slipped nearly 2% even though the company reported fourth-quarter adjusted earnings of $1.19 per share on revenue of $898 million. LSEG consensus estimates were $1.09 per share and $877 million. The decline indicates investors may have focused on forward expectations, margin trajectory, or other details not captured in the headline beat.
UiPath fell on operating income outlook. UiPath dropped 7.4%. The company guided for current-quarter adjusted operating income of roughly $100 million versus the FactSet consensus call for $99.6 million, while revenue guidance ranged from $440 million to $445 million compared with an estimated $441.5 million. The move suggests traders reacted to expectations around profitability and the quality of the forecast rather than a single line item.
Other catalysts: brokerage controversy and leadership change
AMC’s CEO criticized Robinhood’s stock token program. AMC Entertainment shares rose 5.5% after its CEO attacked Robinhood’s stock tokens for AMC and other names, describing the practice in strong terms as contemptible, outrageous and vile. Robinhood shares slipped nearly 2% in response. The trading response reflects how platform and retail-trading headlines can rapidly shift sentiment in heavily traded, retail-influenced equities.
Credit monitoring stocks were pressured by regulatory remarks. Equifax and TransUnion shares fell in premarket trading, while Federal Housing Finance Agency Director Bill Pulte said on X late Thursday that Equifax, TransUnion and Experian have been “overcharging Americans for too long,” adding that “This will end soon.” The move suggests investors are assessing potential regulatory risk and the possibility of changes to credit pricing practices, though the company-specific financial impact was not detailed in the remark.
Adobe’s CEO succession plan stirred uncertainty. Adobe shares were last down nearly 3% after the software company announced Anil Chakravarthy would be its next CEO, succeeding Shantanu Narayen, who said last March he would step down from the role. Leadership transitions can affect investor expectations around strategy and execution pace, especially when markets are also digesting recent earnings and guidance.
Bigger picture: what investors are watching next
With premarket moves driven mainly by earnings prints and forward guidance, the next focus is whether companies can sustain momentum as more investors assess cost structures, demand visibility and subscription trends. Traders will likely watch upcoming earnings releases and management commentary for updates on outlook, while broader market attention remains on rate expectations and economic data that can influence discount rates across growth and high-multiple sectors.
