U.S. stock futures were again lower on Tuesday with Nasdaq futures hardest hit, falling 1.6% before the bell. Dow futures were marginally weaker, down 0.15%, while S&P futures were 0.6% softer at the time of writing.
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Home Depot (HD) reported better-than-expected Q4 earnings before the bell but was trading 1.7% lower in the pre-market session on continued uncertainty related to the impact of the pandemic. Meanwhile, investors are waiting for MDT, M and ARNC to release their earnings before the open, while INTU, PXD and COG will post their results after the market closes.
Sundial Growers (SNDL) was among the heaviest traded stocks before the bell, with over 5 million shares having already changed hands at the time of writing. The cannabis cultivator was trading around 13% lower in pre-market trading.
Vascular Biogenetics (VBLT) was the top gainer before the open, rising around 50% and closely followed by ReTo Eco-Solutions (+49%) and Dawson Geophysical (+32%)
Biggest losers in pre-market trading were Churchill Capital (-34%), VirTra Inc (-26%) and Sify (-24%).
In corporate earnings news, shares of Cinedigm (CIDM) were trading almost 18% lower on Tuesday after announcing a larger-than-expected loss in the third quarter. The company posted a net loss per share of $0.07, larger than the $0.03 expected by analysts. Revenues fell 13.5% year-on-year to $9.95 million, missing analysts’ estimates of $10.57 million. Sales were dented by the negative COVID-19 impact on its legacy cinema business but were partially offset by higher streaming revenues.
CVR Energy (CVI) looked set to open around 11% lower after posting worse-than-expected fourth quarter losses. A decrease in pandemic-led demand and a faulty renewable fuel standard program led to an adjusted loss of $1.18 per share versus the $0.72 loss expected by analysts. Net sales for the quarter amounted to $1.12 billion, falling short of analysts’ forecasts of $1.19 billion. Net sales from the petroleum segment fell 33% year-over-year to $1 billion, with EBITDA plummeting to just $1 million compared to the prior-year period of $142 million.
Meanwhile, ZoomInfo (ZI) was trying to recover all of yesterday’s 6.25% losses and was trading over 5% higher before the bell. The company reported better-than-expected fourth quarter earnings of $0.12 per share compared to analysts’ estimates of $0.10. Revenues rose 53% year-on-year, coming in at $139.7 million and beating consensus forecasts of $130.3 million. Non-GAAP adjusted net income per share for Q1 2021 is expected to be between $0.10 to $0.11.
In M&A news, KKR & Co. (KKR) has agreed to acquire a majority stake in Telefónica Chile’s existing fiber optic network for around $1 billion. The deal is expected to close in the first half of 2021 and will see a newly formed company established, of which Telefónica will own a 40% stake. The new business plans to expand broadband coverage across Chile from 2 million households to a minimum of 3.5 million by 2023.
Proofpoint (PFPT) has agreed to buy InteliSecure for $62.5 million in cash and expects the deal to boost the company’s revenue by $10 million in 2021. The deal is expected to close in March and according to Proofpoint’s CEO, Gary Steele, “The acquisition of InteliSecure will support our ability to collectively help our customers and partners with people-centric managed security services.”
