Cybersecurity Group Pops in Premarket

By George Banko

February 7, 2024

Good Morning Wake-Up Watchlisters! While you’re sipping coffee you’ll see U.S. stock futures were down on Wednesday following a 10-year bond auction of $42 billion. The latest development may indicate that the recent sell-off was overdone. Central bank officials are also keeping a cautious tone, saying more progress is needed on inflation before rate reductions are possible later this year.

As markets remain volatile, we’ve been taking consistent winners in The War Room as earnings season rages on. Yesterday our Head Trading Tactician Bryan Bottarelli closed 3 overnight winning trades, including a 150% winner on PLTR, a 48% winner on COHR, and a 14% winner on DD.

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Here’s a look at the top-moving stocks this morning.

Fortinet Inc. (NYSE: FTNT)

Fortinet is up 8% in premarket trading. The cybersecurity company posted a revenue of $1.42 billion, a 10.3% increase year-over-year, with an EPS of $0.51, exceeding expectations. The revenue surprise was +0.33%, and the EPS surprise was +18.60% compared to consensus estimates. These positive results are attributed to strong performance across key metrics, including total billings and deferred revenue, which surpassed analyst predictions.

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Enphase Energy (Nasdaq: ENPH)

Enphase Energy is up 15.10% in premarket trading after the solar inverter maker predicted higher demand for its products by the end of the second quarter. Solar companies have been seeing higher inventory levels in Europe and the U.S. due to the metering reform and high lending rates. Enphase said revenue decreased to about 70% in the fourth quarter.

Cirrus Logic Inc. (Nasdaq: CRUS)

Cirrus Logic Inc. is up 10.94% premarket after announcing record revenue of $619.0 million in the fiscal third quarter. The company’s GAAP EPS stood at $2.50, while the non-GAAP EPS was even higher at $2.89. This performance highlights Cirrus Logic’s strong position in the market, especially in the semiconductor industry, known for its competitive landscape.

Mercury Systems (Nasdaq: MRCY)

Mercury Systems is down 16.43% in premarket trading after it reported a significant premarket drop due to its Q2 FY24 results revealing a GAAP net loss of $45.6 million and adjusted EBITDA of -$21.3 million. Despite a near-record $325.4 million in bookings, the company faced challenges, including program cost growth and manufacturing adjustments, which impacted financial performance.