Check out the companies making headlines before the bell:
Lululemon – Lululemon reported quarterly profit of 96 cents per share, 7 cents a share above estimates. Revenue also beat forecasts. The apparel maker’s comparable-store sales jumped 15%. Lululemon also raised its full-year guidance. Results were boosted by strength in online sales and in the menswear category.
GrubHub – GrubHub announced a new delivery partnership with McDonald’s, which will make the restaurant chain’s offerings available through the GrubHub and Seamless delivery services in New York City and in the Tri-State area.
Alibaba – Alibaba is buying the Kaola e-commerce business from Chinese gaming company NetEase for $2 billion. Kaola specializes in luxury goods imports.
Bank of America – Keefe Bruyette & Woods downgraded the stock to “market perform” from “outperform,” reversing a recent upgrade. KBW points to the escalation of the trade war impacting economic growth, as well as prospects for further Federal Reserve rate cuts.
Zoom Video Communications – Zoom reported quarterly profit of 8 cents per share, 7 cents a share above estimates. The videoconferencing company’s revenue also topped forecasts and Zoom increased its full-year forecast.
Crowdstrike – Crowdstrike reported a quarterly loss of 18 cents per share, 5 cents a share smaller than Wall Street had anticipated. The cybersecurity company’s revenue also exceeded analysts’ expectations and Crowdstrike raised its full-year outlook. Both Zoom and Crowdstrike came under pressure after the results, indicating investor concern about possibly elevated valuations.
Costco – The warehouse retailer reported an August comparable-store sales increase of 5.5%, topping the Refinitiv consensus estimate of a 4.9% increase.
DocuSign – DocuSign reported adjusted quarterly profit of 1 cent per share, short of the 4 cents a share consensus estimate. Revenue topped estimates, however, and the provider of electronic signature technology gave an upbeat current-quarter forecast.
Beyond Meat – The maker of plant-based burgers was rated “underperform” in new coverage at D.A. Davidson, with a price target of $130 per share. The firm said its view does not reflect a negative view of the company or its ability to execute, but rather the size of the total addressable market and the number of potential frequent purchasers.
Kellogg – Goldman Sachs upgraded the cereal maker’s stock to “buy” from “neutral,” predicting accelerating organic sales and improved profit margins.