After-Hours Market Movers: Overview
Following Thursday’s trading session, several notable stocks experienced significant price fluctuations in after-hours trading. Key drivers included earnings reports, revised guidance, and executive commentary influencing investor sentiment.
Lululemon Slides on Disappointing Earnings Forecast
Lululemon's shares declined sharply by 20% after the company presented earnings guidance that fell short of analyst expectations. The company forecasted second-quarter earnings per share (EPS) between $2.85 and $2.90, whereas market estimates had anticipated $3.29 per share. Additionally, Lululemon revised its full-year earnings outlook downward, further dampening investor confidence.
DocuSign's Billings Growth Misses Estimates
The software firm DocuSign's stock dropped by 16% after reporting first-quarter billings of $739.6 million, below analysts’ projected $746.2 million. This slower-than-expected growth raised concerns regarding the company’s subscription revenue trajectory.
Tesla Extends Decline Amid Ongoing Social Media Disputes
Tesla shares fell approximately 2% in extended trading, continuing a broader 14% decline from the regular session. The drop coincided with escalating tensions between Tesla CEO Elon Musk and former President Donald Trump on social media platforms, which appeared to impact investor sentiment.
Samsara Projects Slower Revenue Growth
Samsara, a software company, experienced an 11% drop in its share price after forecasting a moderation in revenue growth. The guidance projects second-quarter revenue between $371 million and $373 million, slightly higher than the first quarter’s $367 million but indicating decelerated sequential and year-over-year expansion.
Broadcom’s Free Cash Flow Disappoints Despite Earnings Beat
Chipmaker Broadcom saw its shares dip by over 3% after reporting free cash flow of $6.41 billion, falling short of the anticipated $6.98 billion for its fiscal second quarter. While adjusted EPS and revenue marginally exceeded expectations, the free cash flow shortfall tempered enthusiasm. Notably, Broadcom shares had surged nearly 30% in the month preceding this report.
Rubrik’s Guidance Aligns with Analyst Expectations
Shares of cloud data management provider Rubrik fell by nearly 2% after issuing a second-quarter loss forecast between 33 and 35 cents per share, consistent with Wall Street’s estimated loss of 35 cents. The company’s first-quarter results had surpassed estimates.
Quanex Building Products Surges on Strong Earnings
Construction materials manufacturer Quanex Building Products rallied by more than 8% after reporting adjusted EPS of 60 cents for its fiscal second quarter, well above the consensus estimate of 47 cents. The company also posted revenue of $452 million, beating the expected $439 million, reflecting robust demand.
Braze Shares Decline on Weak Earnings Guidance
Customer engagement platform provider Braze’s shares declined by 8% following a lower-than-expected second-quarter earnings outlook. The company forecasted adjusted EPS between 2 and 3 cents, significantly below analysts’ projections of 9 cents. Despite this, Braze had topped estimates in the first quarter with EPS of 7 cents on revenue of $162.1 million.
