After-Hours Movers: Earnings and Guidance Drive Market Reactions
Major market indices may have closed for the day, but trading activity continued in the extended session as investors digested a fresh batch of corporate earnings and forward-looking guidance. The performance of several prominent stocks highlighted the market’s sensitivity to both quarterly results and future outlooks, with sectors like retail, semiconductors, and software seeing pronounced moves. Below is a breakdown of the key companies making headlines, with all data referenced from analyst polls conducted by LSEG Data & Analytics or FactSet, unless otherwise noted.
Costco Wholesale (COST)
Shares of the membership-based retail giant edged slightly lower, dipping less than 1% in after-hours trading. The move came despite the company delivering a minor beat on quarterly expectations. For its fiscal second quarter, Costco reported earnings of $4.58 per share on revenue of $69.6 billion. This compared to the LSEG consensus estimate of $4.56 in earnings per share and $69.29 billion in revenue. A standout metric was the 13.6% year-over-year increase in membership fees, which totaled $1.36 billion, underscoring the enduring strength and pricing power of its core business model.
Marvell Technology (MRVL)
Driven by robust demand for its semiconductor solutions in artificial intelligence applications, Marvell’s stock surged 14% in extended trading. The company’s fourth-quarter results exceeded forecasts, with adjusted earnings of 80 cents per share on revenue of $2.22 billion. Analysts had been anticipating 79 cents per share in earnings and $2.21 billion in revenue, per LSEG data. Management’s commentary was particularly bullish, stating that the company expects its year-over-year revenue growth rate to accelerate with each successive quarter throughout fiscal 2027, a trajectory that appears to have strongly resonated with investors.
Gap (GPS)
The apparel retailer saw its shares slide nearly 8% after reporting a quarterly earnings miss. Gap’s fourth-quarter results came in at 45 cents per share, just below the LSEG analyst forecast of 46 cents. Revenue was a relative bright spot, matching expectations at $4.24 billion. The slight earnings shortfall, despite revenue meeting the mark, suggests potential margin pressure or cost challenges that investors are scrutinizing in the competitive retail landscape.
Samsara (IOT)
Shares of the industrial IoT and telematics software company jumped more than 11% following the announcement of upbeat full-year guidance. Samsara projects adjusted earnings between 65 and 69 cents per share and revenue ranging from $1.97 billion to $1.98 billion. This outlook significantly surpassed the LSEG consensus, which called for 59 cents in earnings and $1.92 billion in revenue. The company also noted in its release that it is leveraging artificial intelligence to automate workflows and enhance operational efficiency for its customers, a strategic focus that appears to be boosting investor confidence in its growth trajectory.
Guidewire Software (GWRE)
Provider of software for property and casualty insurers saw its stock gain about 4% after a strong second-quarter performance. Guidewire reported adjusted earnings of $1.17 per share on revenue of $359.1 million, crushing analyst expectations. The LSEG poll had forecast earnings of 77 cents per share and revenue of $342 million. The substantial beat on both the top and bottom lines indicates robust demand and execution within its niche software segment.
The Cooper Companies (COO)
The medical device manufacturer added 3% in extended trading after raising its full-year guidance. Cooper now expects adjusted earnings to range from $4.58 to $4.66 per share for the year, which is above the FactSet consensus estimate of $4.52 per share. The company also noted that its first-quarter profit had exceeded Street estimates, providing a solid foundation for the upgraded outlook. The guidance hike reflects confidence in continued demand for its women’s health and ophthalmology products.
— Alex Harring, Sarah Min, Davis Giangiulio and Darla Mercado contributed reporting.
