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## Top Companies Making Headlines Before the Bell
### American Express
American Express shares slid by 3% after reporting smaller-than-expected revenue for the previous quarter. Despite beating earnings per share expectations, the company's revenue came in at $15.05 billion, lower than the estimated $15.48 billion.
### AutoNation
AutoNation's shares also slid by 3% even after the company reported second-quarter results that beat expectations. With adjusted earnings of $6.29 per share and revenue of $6.89 billion, AutoNation outperformed the estimated earnings of $5.91 per share and revenues of $6.78 billion.
### Sunnova Energy
Following a downgrade by BMO to market perform from outperform, Sunnova Energy saw a 2% decline in its stock. BMO cited the challenging macro backdrop for residential solar and expressed concerns about Sunnova's debt issuances.
### CSX
CSX experienced a 4% fall after missing revenue expectations in its second quarter. The transportation company reported revenue of $3.7 billion, which fell short of the estimated $3.74 billion. However, its earnings per share came in line with the consensus at 49 cents.
### Capital One Financial
Capital One Financial saw a slight rise in its stock after posting better-than-expected earnings for the latest quarter. With adjusted earnings of $3.52 per share, the company beat the estimated $3.23 per share. However, its revenue missed expectations, and total deposits also decreased by 2% at the end of the second quarter.
### PPG Industries
PPG Industries declined by 2% despite reporting strong second-quarter results. The supplier of paints, coatings, and other materials posted adjusted earnings of $2.25 on revenue of $4.87 billion, surpassing the estimated earnings of $2.14 per share and revenue of $4.84 billion. The company also raised its current-quarter and full-year earnings guidance.
### Intuitive Surgical
Intuitive Surgical's stock fell by 4% after the health care firm reported weaker-than-expected systems revenue in its second quarter. Although the company beat analysts' expectations with adjusted earnings of $1.42 per share and $1.76 billion in revenue, its systems revenue of $392.7 million fell short of the estimated $415.9 million.
### Knight-Swift Transportation
Knight-Swift Transportation's stock dropped more than 2% after reporting lower-than-expected earnings in its second quarter and issuing weak guidance. With adjusted earnings of 49 cents per share and $1.55 billion in revenue, the company fell short of the estimated 55 cents in earnings per share and quarterly revenue of $1.60 billion. Soft demand and a modest rise in driver turnover were cited as factors that affected the company's performance.
### Scholastic
Scholastic's stock rose by 6% after beating earnings-per-share expectations. The publisher posted $2.26 earned per share, higher than the estimated $1.70. Additionally, Scholastic announced plans to increase its share repurchase amount by $100 million. Although revenue came in at $428.3 million, lower than the expected $541.8 million, the positive earnings performance contributed to the stock's rise.
## Conclusion:
The recent stock market performances of these top companies provide valuable insights for new businesses seeking to navigate the current market landscape. While some companies experienced declines or missed revenue expectations, others surpassed expectations and saw positive growth.
The market reaction to American Express and AutoNation highlights the importance of revenue performance. Even beating earnings per share expectations, American Express saw a decline in its stock due to smaller-than-expected revenue. Similarly, AutoNation's stock slid despite outperforming estimated earnings, suggesting that revenue figures carry significant weight for investor sentiment.
Sunnova Energy's downgrade and CSX's revenue miss serve as reminders of the impact of external factors on business performance. The challenging macro backdrop for residential solar and concerns about debt issuances affected Sunnova Energy's stock, while CSX's revenue fall reflected the company's inability to meet market expectations.
Capital One Financial's slight rise in stock, despite missing revenue expectations, highlights the significance of adjusted earnings. This suggests that companies can still generate positive investor sentiment by focusing on their bottom line and profitability.
PPG Industries' decline, despite strong second-quarter results, demonstrates the market's emphasis on aligning company performance with estimated earnings and revenue. Intuitive Surgical and Knight-Swift Transportation also faced declines due to weaker-than-expected revenue and earnings performance, showcasing the importance of meeting or exceeding analyst expectations.
Scholastic's rise in stock after beating earnings-per-share expectations showcases the potential for positive market reactions when companies surpass estimated earnings, even if revenue figures fall short.
Overall, new businesses can learn from these market movements by prioritizing revenue and profitability, aligning their performance with estimated earnings and revenue, and being mindful of the impact of external factors on their business. By focusing on these key aspects, businesses can enhance their chances of gaining investor confidence and achieving financial success.
Article First Published at: https://www.cnbc.com/2023/07/21/stocks-making-the-biggest-moves-premarket-american-express-autonation-csx-and-more.html
