3 Stocks to Watch on Friday: Ambarella Inc (AMBA), Lululemon Athletica inc. (LULU) and Palo Alto Networks Inc (PANW)

 
 

August ended with a bang for the stock market amid a broad up day for the major indices, led by a 1.7% jump in healthcare stocks. The S&P 500 Index gained 0.6%, the Dow Jones Industrial Average added 0.3% and the Nasdaq Composite rose 1%.

Several companies posted their quarterly earnings results after hours Thursday, including Ambarella Inc (NASDAQ:AMBA), Lululemon Athletica inc. (NASDAQ:LULU) and Palo Alto Networks Inc (NYSE:PANW).

Here’s a look at how they did, and a look at what they’re doing Friday morning:

Ambarella Inc (AMBA)

AMBA shares are tanking this morning despite reporting a decent second quarter.

The video-focused semiconductor maker earned $3.3 million (10 cents per share) in its second quarter, down from a quarter per share in the year-ago period. On an adjusted basis, profits of 48 cents per share did come in ahead of the consensus estimate for 44 cents per share.

Revenues looked good, too, rising nearly 10% year-over-year to $71.6 million, which was ahead of analysts’ expectations for $70.7 million.

For the current quarter, Ambarella sees its revenue in the range of $87.5 million to $90.5 million, with the midpoint coming in just ahead of Wall Street’s forecasts for $88.8 million.

Nonetheless, Wall Street clearly was looking for a little more. AMBA stock is off about 12% in early Friday trade.

Lululemon Athletica Inc. (LULU)

LULU stock is on the rise following the athletic retailer’s strong second quarter.

For Q2 of its fiscal 2018, Lululemon posted profits of $48.7 million (36 cents per share), which was 3 cents below what it earned in the year-ago quarter. Still, that was enough to beat analysts’ earnings estimates by a penny per share.

Revenue increased by a 13% margin compared to the year ago, coming in at $581.1 million. Analysts’ guidance called for Lululemon’s revenue to be $567.8 million.

Sales at stores open for more than a year improved by 7%, which beat analysts’ expectations of a 4% increase in same-store sales. Online sales grew by 30% on a constant-currency basis.

Full-year earnings are slated to be between $2.35 and $2.42 per share on an adjusted basis. Revenue is slated to be between $2.55 billion and $2.6 billion, up from its previous outlook of $2.53 billion to $2.58 billion.

LULU shares are surging more than 5% this morning.

Palo Alto Networks Inc (PANW)

Lastly, PANW stock is having a great morning, with the company on the rise following its Street-beating fiscal Q4.

The security software and services provider earned $38.2 million (42 cents per share) for the quarter. On an adjusted basis, earnings of 92 cents per share were 39% higher year-over-year and easily bested Wall Street expectations for 79 cenets in profits.

Revenues also beat the Street, coming in 27% higher at $509.1 million to beat Wall Street’s consensus estimate of $488 million.

Palo Alto’s 2018 fiscal-year guidance is now expected to be in the range of $2.13 to $2.17 billion, according to the company’s estimates. PANW also said that Steffan Tomlinson, chief financial officer, will be retiring. However, Tomlinson will remain in his position until the company finds a suitable replacement.

PANW stock is up more than 8% in Friday’s premarket trade.

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