Shares of cloud computing provider DigitalOcean (NYSE: DOCN)
fell 14.5% in the afternoon session after the company reported weak first quarter 2025 results which included significantly missed EPS guidance for next quarter and full-year revenue guidance merely in line with expectations. On the other hand, DigitalOcean beat analysts' EBITDA expectations this quarter and net revenue retention grew. Still, this was a mixed quarter.
Shares of solar power systems company SolarEdge (NASDAQ:SEDG)
jumped 11.1% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' sales and EBITDA estimates. Sales rose by 12% from the last quarter, driven by more shipments of inverters and batteries. This signaled improving demand, even with policy headwinds still in play. Zooming out, we think this quarter featured some important positives.
Shares of industrials products and automation company Regal Rexnord (NYSE:RRX).
jumped 13.7% in the afternoon session after the company reported strong first quarter 2025 results which significantly beat analysts' organic revenue expectations. In addition, its EPS and full-year EPS guidance topped Wall Street's estimates. What stood out was the 8% organic growth in its Power Efficiency unit, thanks to solid demand for home heating and cooling equipment in North America. Also, while sales dropped due to selling off a business, the company's core lines still grew nearly 1% organically. Zooming out, we think this quarter featured some important positives.
Shares of solar energy systems company Shoals (NASDAQ:SHLS)
jumped 14.9% in the afternoon session after the company reported strong first quarter 2025 results which beat analysts' revenue and EBITDA expectations. In addition, next quarter revenue guidance and full-year EBITDA guidance topped Wall Street's estimates. The size of its future work pipeline, orders in hand, grew 5% to $645 million, most of which is set to turn into sales soon. Revenue did fall from the previous year, mainly due to changes in pricing and the type of products sold, but that shortfall was less important than the outlook. Overall, we think this was a solid quarter with some key areas of upside.
Shares of data-mining and analytics company Palantir (NYSE:PLTR)
fell 13.3% in the afternoon session after the company reported first quarter 2025 results, which had high expectations heading into the prints, making it hard for the stock to impress Wall Street. The quarter itself was fine. Palantir beat analysts' revenue and adjusted operating income expectations and raised full-year guidance on both metrics. Zooming out, we think this was a decent quarter, but markets were expecting more given its lofty valuation.
Wall Street edged lower by midday Tuesday as uncertainty surrounding trade policies lingered, with investors adopting a cautious approach ahead of Wednesday’s Federal Reserve meeting.
The Finchat-compiled consensus estimates call for adjusted earnings per share of $0.93and revenue of $7.12 billion for the first quarter of the fiscal year 2025.
