Cloud security provider Zscaler (ZS) shares tumbled more than 30 percent in midday trading after its current-quarter revenue guidance missed analyst expectations. The company projected revenue between $875 million and $878 million, below the $879 million consensus from LSEG analysts.
Despite weak forward guidance, Zscaler delivered solid fiscal third-quarter results: adjusted earnings of $1.08 per share beat the $1.01 forecast, and revenue of $850 million topped the $835 million estimate. The miss on the outlook, however, outweighed the beat.
The guidance disappointment rippled across the sector. Palo Alto Networks (PANW) fell 2.8 percent and CrowdStrike (CRWD) dropped more than 3 percent. Investors are now scrutinizing cybersecurity earnings for signs of slowing enterprise spending.
Dycom Industries (DY) surged about 30 percent after raising full-year contract revenue guidance to $7.38 billion to $7.65 billion. The telecom infrastructure play also announced the acquisition of National Technology Integrators, bolstering its data center footprint—a high-margin segment attracting capital-intensive telecom spending.
Lower oil prices lifted travel and cruise names Wednesday. Brent crude fell nearly 4 percent; West Texas Intermediate lost over 4 percent. United Airlines (UAL) advanced 7 percent and Delta Air Lines (DAL) gained 4 percent. Carnival (CCL) jumped 4 percent and Norwegian Cruise Line (NCLH) added 5 percent.
Marvell Technology (MRVL) slumped more than 3 percent ahead of its first-quarter earnings report after the market close. FactSet estimates 79 cents per share on $2.4 billion in revenue. The stock had more than doubled year to date before today's decline.
Micron Technology (MU) rose about 2 percent, extending gains after its market capitalization surpassed $1 trillion this week.
Bath & Body Works (BBWI) climbed 12 percent on stronger-than-expected second-quarter guidance: 20 to 25 cents per share versus FactSet's 21-cent consensus. First-quarter adjusted earnings and revenue also slightly exceeded estimates.
Insulет (PODD) dropped about 7 percent after announcing a voluntary correction for specific lots of its insulin-delivery pods due to a manufacturing issue that could result in insulin underdelivery.
Dick's Sporting Goods (DKS) fell 5 percent after reaffirming full-year earnings guidance of $13.50 to $14.50 per share, below FactSet's higher expectations.
