In after-hours trading on Friday, several companies saw their stock prices decline following disappointing news. Here’s a breakdown of the biggest movers and shakers:
SVB Financial: Shares of the financial services company fell 6% after it announced plans to raise over $2 billion in capital to offset losses from bond sales. This decline follows a plunge in the company’s stock price during Thursday’s session.
Oracle: Despite beating analysts’ earnings expectations for the third quarter, the information technology company saw its stock price drop 4.9% after missing on revenue. While Oracle posted adjusted earnings of $1.22 per share, exceeding the $1.20 per share predicted by analysts, its revenue came in lower than expected at $12.40 billion versus the anticipated $12.42 billion. Oracle also increased its quarterly dividend to 40 cents from 32 cents.
Gap: The retailer tumbled 7% after posting a larger-than-expected loss of 75 cents per share in the fourth quarter. Revenue was also lower than expected at $4.24 billion compared to an expected $4.36 billion. Gap said it expects its first quarter and full-year revenue to decrease year over year despite analysts’ projections for modest gains.
Ulta: Despite beating analysts’ estimates for both earnings and revenue, beauty retailer Ulta saw its stock price decline 2.1%. Earnings per share came in at $6.68, $1 above the consensus estimate, and revenue was $3.23 billion, higher than the $3.03 billion anticipated by analysts.
Vail Resorts: The company’s stock price dropped 4.6% following mixed results for its second fiscal quarter and weak guidance. While Vail Resorts beat revenue expectations with $1.1 billion, its earnings of $5.16 per share were under the $6.11 anticipated by analysts. The company’s net income and adjusted EBITDA guidance for the year leading up to July were also lower than analysts’ projections.
Zumiez: Shares of the retailer declined 11% despite beating fourth-quarter expectations, as weak guidance for the current quarter overshadowed the positive news. Zumiez reported per-share earnings of 59 cents, 10 cents higher than analysts’ forecasts, and revenue of $280.1 million, higher than the consensus estimate of $267.8 million. However, the company’s projected loss of between 85 and 95 cents per share for the current quarter, as well as expected revenue between $178 million and $184 million, fell short of Wall Street’s projections.
DocuSign: The electronic signature platform saw its stock price fall 5% despite beating expectations on both earnings and revenue. While earnings came in at 62 cents per share, 10 cents above analyst estimates, and revenue was $660 million, $28 million higher than anticipated, the company announced that its CFO, Cynthia Gaylor, would step down later this year.
Conclusion
While some companies managed to beat expectations in their most recent quarters, weak guidance and missed revenue projections left investors feeling uncertain about their future prospects. It remains to be seen whether these setbacks will have long-term effects on these companies’ stock prices or if they will bounce back in the coming months.
