SPT - Hot Stocks: SPT MRCY drop on earnings news; SMCI surges; IMGN jumps 130%+ on clinical data

2023-05-03 17:39:48 ET

Following another interest rate hike from the Federal Reserve, stocks pushed modestly lower on Wednesday. Amid uncertainty about the future of monetary policy and concerns about the economy, the S&P 500 recorded its third consecutive day of declines.

On the earnings front, Sprout Social ( SPT ) and Mercury Systems ( MRCY ) both posted double-digit percentage declines following their respective quarterly updates. Meanwhile, Super Micro Computer ( SMCI ) expanded its value by more than a quarter, driven higher by an upbeat forecast included in the firm's earnings report.

Elsewhere in the market, shares of ImmunoGen ( NASDAQ: IMGN ) more than doubled following the company's release of fresh data about its ovarian cancer drug.

Standout Gainer

The release of clinical trial data prompted a surge of buying in ImmunoGen ( IMGN ). The stock surged 136% after the company released new information about its ovarian cancer drug Elahere.

The data, based on a confirmatory phase 3 trial, showed statistically significant improvements in progression-free survival and overall survival. "We believe these data will provide the foundation for pursuing a marketing authorization in Europe and elsewhere," the company's CEO stated.

On the back of the data, IMGN jumped $7.06 to close at $12.26. During the session, the stock touched an intraday 52-week high of $13.31.

Standout Decliner

Sprout Social ( SPT ) reported better-than-expected Q1 results. However, investors were unimpressed by the firm's forecast , sparking a 12% decline in its share price.

The social media software company topped projections with its Q1 EPS, with revenue that surged 31% from last year. However, SPT's outlook showed stagnating revenue growth.

For Q2, the company predicted total revenue of $78.6M-$78.7M, representing year-over-year growth of around 28%. Analysts were predicting a figure of around $79.9M. Meanwhile, services revenue is projected to be lower than in the same period of 2022.

SPT ended Wednesday's trading at $42.26, falling $5.86 on the session. Shares also reached an intraday 52-week low of $37, although the stock managed to conclude trading above a closing low reached last May.

Notable New High

Super Micro Computer ( SMCI ) jumped 28% to reach a new 52-week high, inspired by the release of quarterly results that included a strong forecast for the current fiscal period.

SMCI missed expectations with its Q3 earnings and reported a nearly 6% drop in revenue. However, investors cheered the firm's revenue forecast, which called for a top-line total between $1.7B and $1.9B. This was above the $1.6B that analysts had predicted.

Buoyed by the outlook, SMCI surged to an intraday 52-week high of $136.64. The stock eventually finished at $133.95, rising $29.52 on the session.

With the advance, the stock jumped above a recent trading range to add to gains posted earlier in the year. Shares are now up 60% so far in 2023. Over a 12-month timeframe, SMCI has jumped more than 130%.

Notable New Low

Mercury Systems ( MRCY ) beat expectations with its Q3 results. However, the provider of technology to the aerospace and defense industry lowered its bottom-line projections for the full year, sending the stock lower by 17%. Shares also reached a 52-week low.

MRCY edged past expectations with its quarterly EPS with revenue that rose 4% from last year. However, while predicting record bookings for the full year, the firm also cut its targets for earnings.

"On the bottom line, we’re lowering the range for GAAP net income and adjusted EBITDA by $34 million and $44 million at the midpoint," the firm's CEO stated.

The outlook triggered a wave of selling in MRCY, with shares dropping $7.84 on the day to close at $37.44. The stock also reached an intraday 52-week low of $34.13. Over the past month, MRCY has dropped 26%.

For more of the day's biggest winners and losers, head to Seeking Alpha's On The Move section .

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