Premarket movers: Snowflake, Five Below surge after strong earnings

Investing.com -- U.S. equity futures were mixed early Thursday, a day after major averages snapped a three-day losing streak driven by rising Treasury yields amid renewed U.S.-Iran hostilities. S&P 500 futures were up 0.1%, Dow futures rose 0.2%, and Nasdaq 100 futures climbed 0.1%.

Among individual stocks, Snowflake shares jumped more than 23% in premarket trading after the company posted second-quarter results that topped expectations and raised its full-year outlook. Adjusted earnings came in at 62 cents a share, beating estimates of 45 cents, while revenue rose 35% year-over-year to $1.55 billion. Product revenue climbed 37% to $1.49 billion, marking a third straight quarter of accelerating growth.

Snowflake also raised its fiscal 2027 product revenue guidance to $6.07 billion, well above the prior forecast of $5.84 billion.

Five Below shares rose about 4% after the retailer’s fiscal second-quarter results beat expectations across the board. Adjusted earnings per share came in at $1.68, versus estimates of $1.33, while net sales rose 22.9% to $1.26 billion. Comparable sales grew 14.1%, marking a fifth straight quarter of double-digit growth. The company raised its full-year sales guidance to $5.63-$5.71 billion and authorized a new $600 million buyback program.

Hewlett Packard Enterprise shares fell nearly 3% despite a stronger-than-expected quarter and raised guidance for fiscal 2026 and 2027, as investors focused on ongoing supply constraints. The company posted adjusted earnings of $1.11 per share on revenue of $12.21 billion, above estimates of 92 cents and $11.93 billion.

HPE also expanded its collaboration with Oracle, granting the company an option to purchase HPE common stock and extending Juniper networking services across Oracle’s data centers. CEO Antonio Neri said AI is "becoming a multi-year growth driver" for the company.

Broadcom shares also dipped around 3% after the company forecast fourth-quarter revenue of $34.8 billion, below estimates of $35.05 billion. Losses were tempered after CEO Hock Tan projected revenue would rise to $115 billion in fiscal 2027 and double again to $230 billion in fiscal 2028. Broadcom also forecast fourth-quarter AI chip sales of $21.7 billion, slightly above estimates.

Ultragenyx Pharmaceutical shares plunged over 44% after the company’s drug apazunersen failed to meet its primary goal in a late-stage trial for Angelman syndrome, a neurodevelopmental disorder. The drug showed no meaningful improvement in cognitive ability or overall development compared with placebo. Ultragenyx said it is reviewing the future of the program.

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