Stocks Making Headlines in After-Hours Trading
Several major companies made significant moves in after-hours trading, with some exceeding expectations and others falling short. Microsoft, for instance, saw its shares drop almost 7% due to slowed cloud growth in the fiscal second quarter and lighter guidance for operating margin in the fiscal third quarter. Despite this, the company’s adjusted earnings of $4.14 per share surpassed consensus expectations of $3.97 per share, according to LSEG. Microsoft’s revenue of $81.27 billion for the quarter also exceeded the expected $80.27 billion.
Southwest Airlines and Meta Platforms See Gains
Southwest Airlines, on the other hand, saw its shares jump about 6% after forecasting a surge in 2026 profits following its business model overhaul. The company expects to earn at least $4 per share in 2026, higher than the $3.19 analysts expected. Meta Platforms also saw a significant increase, with shares adding 9% after the company called for first-quarter sales to range from $53.5 billion to $56.5 billion, topping analysts’ consensus call for $51.41 billion. Meta’s fourth-quarter earnings came in at $8.88 per share on revenue of $59.89 billion, while the LSEG consensus sought $8.23 per share and $58.59 billion.
Tesla and Levi Strauss Report Mixed Results
Tesla shares gained 3% after the company posted better-than-expected fourth-quarter results, with adjusted earnings of 50 cents per share on revenue of $24.9 billion. However, the company’s revenue for the year dropped 3%, marking the first time on record that Tesla has recorded an annual decline. Levi Strauss, meanwhile, issued full-year earnings guidance that disappointed Wall Street, coming in at $1.40 to $1.46 per share, lower than the $1.48 per share analysts polled by FactSet sought. Despite top- and bottom-line beats in the fourth quarter, shares slid 2%.
ServiceNow and International Business Machines See Contrasting Fortunes
ServiceNow’s software stock fell more than 4% despite the company reporting fourth-quarter earnings that beat expectations, with adjusted earnings of 92 cents per share on revenue of $3.57 billion. The company estimates first-quarter subscription revenue will be in the range of $15.53 billion and $15.57 billion, which also topped estimates. In contrast, International Business Machines saw its shares jump more than 7% in extended trading, with the company posting fourth-quarter adjusted earnings of $4.52 per share on revenue of $19.69 billion, surpassing analysts’ expectations.
Las Vegas Sands Sees Significant Decline
Las Vegas Sands, the casino operator, saw its shares tumble 9% despite net revenue in Macao coming in at $2.06 billion in the fourth quarter, barely beating the StreetAccount consensus call for $2 billion. Adjusted earnings of 85 cents a share on revenue of $3.65 billion also surpassed the LSEG consensus estimate of 76 cents per share and $3.34 billion.
Smart Tip for Readers
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