On Thursday, West Texas Intermediate futures maturing in March 2025 traded nearly 0.5% lower, while Brent futures maturing in the same month were down almost 0.4%.
On Thursday, U.K. stocks initially rotated within a tight range amidst subdued trading conditions as investors looked for direction following the market's recent all-time highs.
Shares of defense contractor Leidos (NYSELDOS)
fell 7.5% in the morning session after peer, CACI, reported fourth-quarter earnings results, with markets increasingly worried that new cost-cutting initiatives by the US government would affect Defense contracts. Although CACI reported a strong quarter with revenue, EBITDA, EPS ahead of Wall Street's expectations as well as a statement that they're well on their way to meet the three-year financial targets unveiled during the November 2024 Investor Day, the market became fearful of the impact of DOGE during the earnings call Q&A session.
Shares of freight delivery company Knight-Swift Transportation (NYSEKNX)
jumped 6.4% in the pre-market session after the company reported impressive fourth-quarter results, which beat analysts' EPS expectations. Its EPS guidance for next quarter also came in higher than Wall Street's estimates. On the other hand, its EBITDA missed significantly, and its revenue fell slightly short of Wall Street's estimates. The revenue shortfall was largely expected due to operating challenges from hurricanes and port strike disruptions. Overall, this was a mixed quarter. However, the market seems to be focused on the positive aspect, especially the strong earnings guidance.
Shares of defense, intelligence, and IT solutions provider CACI International (NYSECACI)
fell 9.1% in the morning session after the company reported fourth-quarter earnings results, with markets increasingly worried that new cost-cutting initiatives by the US government would affect Defense contracts. Although CACI reported a strong quarter with revenue, EBITDA, EPS ahead of Wall Street's expectations as well as a statement that they're well on their way to meet the three-year financial targets unveiled during the November 2024 Investor Day, the market became fearful of the impact of DOGE during the earnings call Q&A session.
Shares of global airline American Airlines (NASDAQAAL) fell 9.2% in the morning session after the company reported weak fourth-quarter results, with full-year EPS guidance missing Wall Street's estimates due to surging fuel costs and margin pressures from new labor agreements. Management also adopted a cautious stance on capacity expansion, which isn't helping the growth story. On the other hand, AAL beat analysts' revenue passenger miles (a key volume metric) expectations this quarter, which led to a revenue beat. EPS also outperformed. However, with markets more forward-looking, the weak outlook seems to be weighing on shares.
Shares of video game publisher Electronic Arts (NASDAQEA)
fell 18.8% in the morning session after the company reported disappointing preliminary Q3 2025 results, revealing sluggish growth. EA now anticipates a mid-single-digit decline in live services net bookings, a stark reversal from its earlier forecast of mid-single-digit growth. Net revenue is also expected to clock in at $1.883 billion, closer to the lower end of its previous guidance range of approximately $1.875 billion to $2.025 billion. The slowdown was attributed to weaker-than-expected performance in Global Football (football-related video games) and underwhelming engagement from titles like Dragon Age.
Shares of aircraft leasing company FTAI Aviation (NASDAQFTAI) jumped 8% in the morning session as the stock continued to recover after the Muddy Waters short report accusing the company of misrepresenting its business (more asset sales than maintenance, repair, overhaul (MRO) revenue) and engaging in misleading depreciation tactics. This could show that as investors digest the news and speak to FTAI management/investor relations, they are gaining more confidence in the business compared to when the report was initially published. Additionally, multiple sellside analysts from firms such as Morgan Stanley, Jefferies, and BTIG have defended the stock and categorized the drop post-Muddy Waters report to be overblown.
Shares of commercial lighting and retail display solutions provider LSI (NASDAQLYTS)
jumped 26% in the morning session after the company reported strong fourth-quarter results, which beat analysts' revenue, EBITDA, and EPS expectations by convincing amounts. The company attributed the success partly to demand from grocery customers, who "generated sales growth over 50% in the quarter driven by the resurgence in refrigerated and non-refrigerated display case demand". Overall, this was an impressive quarter.
Shares of boat and marine products retailer MarineMax (NYSEHZO)
jumped 18% in the afternoon session after the company reported strong fourth-quarter results, which blew past analysts' EBITDA and EPS expectations.
In this environment, one potential scenario for investors involves a consistent push by the new administration toward lower corporate taxes and stronger infrastructure spending.
Shares of industrial conglomerate GE Aerospace (NYSEGE)
jumped 9.4% in the pre-market session after the company reported strong fourth-quarter results, which blew past analysts' revenue estimates amid improved demand for spare parts, commercial engines, and services. Growth accelerated during the quarter as orders rose by 46% compared to the previous year. The improved demand and pricing enabled the company to grow its cash flow and report earnings ahead of analysts' expectations.
Shares of infrastructure and defense services provider Parsons (NYSEPSN) fell 9.1% in the afternoon session after peer, CACI, reported fourth-quarter earnings results, with markets increasingly worried that new cost-cutting initiatives by the US government would affect Defense contracts.
Shares of electronic components and systems provider OSI Systems (NASDAQOSIS) jumped 15.2% in the afternoon session after the company reported a "beat and raise" quarter. Fourth-quarter results exceeded analysts' revenue and EPS expectations due to strong outperformance in its Security segment. Guidance was also strong as it raised its full-year revenue and EPS outlook. Overall, we think this was a solid "beat-and-raise" quarter with some key metrics above expectations.
