U.S. stock futures were mixed on Wednesday as investors wait for clues regarding the Fed’s economic projections and try to assess when interest rates will begin to rise.
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Dow futures were up 0.1%, S&P futures were flat and Nasdaq futures had slipped 0.4% at the time of writing.
Investors are waiting for earnings results from Pinduoduo (PDD), Cintas (CTAS) and Sina Corp. (SINA) before the bell, while Sundial Growers (SNDL), Five Below (FIVE) and Semtech (SMTC) are expected to report after the market closes.
FSD Pharma (HUGE) was both the most actively traded stock and the biggest pre-market gainer after entering into a licensing agreement to develop FDA-approved veterinary medications. Shares were trading around 50% higher than Tuesday’s close at the time of writing.
Strata Skin Sciences (SSKN) and Tonix Pharma (TNXP) also looked to start the day strong, gaining 25% and 20%, respectively, before the opening bell.
Washington Prime Group (WPG) was the weakest name in the pre-market session, falling 27%, followed by SunLink (SSY) and Plug Power (PLUG), which were down 22% and 20%, respectively.
In corporate earnings news, CrowdStrike (CRWD) was trading 5.5% higher before the bell after reporting better-than-expected Q4 results. “CrowdStrike delivered a record fourth quarter and an exceptional finish to a strong fiscal year,” said CEO George Kurtz. The cybersecurity firm also forecasted Q1 revenues that came in ahead of analysts’ expectations. Revenues of $264.9 million increased 74% year-over-year and topped consensus estimates of $250.6 million, while earnings of $0.13 per share beat analyst estimates of $0.08 per share.
Smartsheet (SMAR) reported a better-than-expected loss in the fourth quarter and beat analysts’ expectations for revenues. Shares of the software company declined 3.1% in Tuesday’s extended trading session after closing 1.2% higher on the day. The company reported an adjusted loss of $0.04 per share compared to analysts’ estimates of a loss of $0.13 per share. Total revenue surged 40% year-over-year to $109.9 million and topped analysts’ expectations of $102.72 million.
Shares of Surgalign (SRGA) dropped 14% after the bell on Tuesday following the release of disappointing Q4 results. An adjusted loss of $1.28 per share was much higher than analysts’ estimates of a loss of $0.32 per share but improved compared to the year-ago period’s loss of $2.72 per share. Revenues declined about 17% year-over-year to $26.2 million but came in marginally ahead of consensus estimates of $26.1 million.
Priority Technology (PRTH) reported better-than-expected Q4 results on Tuesday, sending its shares up about 3.3% after the close. Revenue increased 8.1% year-over-year to $106.1 million and came in more than double analysts’ estimates of $0.48 million. The company’s Chairman and CEO Tom Priore said, “We have executed on our plan to build out our Payment Infrastructure as a Service (PIaaS) solutions while continuing to grow our consumer, commercial and integrated payments divisions.”
In M&A news, Euronet Worldwide (EEFT) has agreed to buy the Merchant Acquiring business of Greece’s largest bank, Piraeus, for $360 million. The acquired assets and services include about 205,000 point-of-sale (POS) terminals at 170,000 merchants across Greece. The transaction is expected to close in 2021 and contribute $80 million to $90 million to Euronet’s revenue in first year of operations.
