Lululemon, Paychex, Micron Technology, And Others Make The Biggest Moves Premarket

‍Lululemon

After reporting a strong holiday quarter and sharing upbeat guidance for the upcoming fiscal year, Lululemon shares soared more than 16% before the opening on Wednesday. As a result of the company's adjusted earnings, $4.40 per share was reported based on $2.77 billion in revenue. Same-store sales increased by 27%, according to the company.

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Carnival Corp

In premarket trading on Tuesday, Carnival Cruise Line shares spiked 2.5% following Susquehanna Investment Group's recommendation to upgrade the cruise line to positive from neutral, citing Carnival's "ample liquidity" in a note to clients that the company should be able to improve its unit margins this year.

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Urban Outfitters, Burlington, Foot Locker, Ross Stores

In the morning on Wednesday, UBS downgraded the apparel and home goods group from neutral to sell, saying that a slowdown in consumer spending curbs the industry's earnings prospects. According to UBS, each of the companies' prices will drop by at least 23%. Foot Locker and Foot Outfitters both dropped 2.3% ahead of the bell. Burlington dropped 2.6% and Urban Outfitters 1.9%.

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Bath & Body Works

A UBS downgrade of the home care and fragrances retailer caused shares to fall over 2% after the firm said a recessionary environment would weigh on the stock in the near future. Candles, for example, are seen by UBS as discretionary products, and in a challenging macro environment, consumers will choose to spend less on these products.

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Micron Technology

As compared to Tuesday, when the manufacturer dropped 1%, the semiconductor company gained 2.6%. Refinitiv consensus estimates predict Micron will miss both top and bottom-line targets for its fiscal second quarter. Despite the loss, Micron's revenue came in at $3.69 billion vs a $3.71 billion consensus estimate. Micron lost $1.91 per share, which exceeded the 86-cent loss expected. Despite bloated customer inventories, Micron is reducing headcount more than expected.

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Paychex Inc.

Before the close of the market on Wednesday, the payroll services company's share price was up nearly 3% premarket. The company is expected to earn $1.25 per share and generate revenue of $1.36 billion. As of this writing, the stock has declined 5.9%.

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UBS

In early trading, UBS shares rose 2.7% after former CEO Sergio Ermotti was named as the new CEO. Ermotti will replace Ralph Hamers, who has served the bank for the past two years. Hamers will advise Ermotti during the transition period. Ermotti was CEO for nine years until Oct. 2020. The deal to acquire Credit Suisse was announced on March 19 for 3.2 billion Swiss francs (about $3 billion).