US major stock indexes are gaining as Americans headed to cast their vote in the presidential election and amid optimism for less volatile markets post-election and a fiscal stimulus package.
The Dow Jones Industrial Average is climbing 1.9% and the S&P 500 Index is up 1.7%. Meanwhile, the tech-heavy Nasdaq Composite Index is adding1.8%
Twitter is soaring 5.6% on news that a board committee created earlier this year to evaluate the social media giant’s leadership structure recommended that the current management structure should remain intact, including its CEO Jack Dorsey. The committee expressed its confidence in the current management structure, the new operating plan and procedures put in place by CEO Dorsey, as well as the company’s “significantly improving product, operational and financial performance through the most recently reported quarter.” Twitter also announced that it will reinstate its previously-authorized $2 billion share repurchase program this quarter.
In tech earnings, Arista Networks is popping 16% after the computer networking solution provider reported better-than-expected 3Q results despite COVID-19 related supply-chain challenges. 3Q sales fell 7.5% year-over-year to $605 million but surpassed analysts’ expectations of $581.3 million and came well ahead of management’s guidance range of $570-$590 million. Adjusted EPS dropped 10% to $2.42 but exceeded the Street consensus of $2.21.
Cirrus Logic is jumping 7.6% after the fabless semiconductor supplier delivered 2Q earnings of $1.26 per share that soared 137.7% year-over-year and exceeded consensus estimates of $1.19 per share. 2Q sales declined 10.7% year-over-year to $347.3 million and missed the Street’s estimates of $354 million. However, 2Q sales surpassed the company’s guidance range of $290 – $330 million.
As for 3Q, Cirrus Logic forecasts revenue in the range of $440 – $480 million, which is above the consensus estimates of $354.4 million. In addition, the company announced the appointment of John Forsytha as the new CEO of the company, who will replace Rhode effective from Jan. 1, 2021.
Diamondback Energy is gaining 2.4% as Q3 Non-GAAP EPS of $0.62 beat Street estimates by $0.26 mostly due to lower cash LOE costs that were better than modeled. Revenue of $720M dropped over 26% year-over-year, but still beat Street forecasts by $7.73M. Diamondback’s third quarter 2020 net loss was $1,113 million, or $7.05 per diluted share. There was also no change to the 2020 production or capital spending outlook.
Meanwhile, SolarEdge Technologies is plunging 23% as the solar energy company disappointed investors with a weaker sales outlook for the fourth quarter due to the continued economic impact of the coronavirus pandemic. The company expects revenues of between $345 million to $365 million in the fourth quarter, which is lower than the sales of $391 million analysts have been projecting.
The weaker outlook comes as the company suffered a 18% year-on-year decline in third-quarter revenue to $338.1 million. Analysts on average had been looking for $343 million. Non-GAAP net diluted EPS was $1.21 in the third quarter, up from $0.97 in the prior quarter and flat compared with the same quarter last year. Analysts had forecast EPS of $0.74.
In another disappointing outlook, PayPal is declining 2.3% as the company’s 4Q earnings guidance lagged analyst expectations. For 4Q, the company anticipates revenue growth of 20%–25% and adjusted EPS increase of 17%–18%. Analysts were expecting adjusted EPS growth of about 24%. Commenting on the 4Q guidance, the company highlighted the uncertainty related to COVID-19, the US presidential election and potential social unrest.
On the corona front, Humanigen is advancing 4.2% as the company announced the execution of its first licensing transaction in the Asia-Pacific Region with Telcon RF Pharmaceutical, Inc. and KPM Tech Co., Ltd for development and commercialization rights to lenzilumab for COVID-19 for South Korea and the Philippines. Humanigen believes that its GM-CSF neutralization and gene-editing platform technologies have the potential to reduce the inflammatory cascade associated with coronavirus infection.
In health news, Aurinia Pharmaceuticals is sinking 14% after the biopharma disclosed disappointing topline data from the Phase 2/3 Audrey clinical study evaluating voclosporin ophthalmic solution (VOS) for the potential treatment of dry eye syndrome (DES). The trial did not achieve statistical significance on its primary endpoint of a 10mm or greater improvement in the Schirmer Tear Test (STT) at four weeks between active dose groups of VOS compared to vehicle. As a result, Aurinia is now suspending the development program for VOS.