3 Stocks to Watch on Friday: Ambarella Inc (AMBA), Smith & Wesson Holding Corp (SWHC) and Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)

Yesterday was a mixed day for major U.S. markets, while oil prices soared 3.3%. Nasdaq Composite stocks were the big losers of the day, falling 1.4%, while the S&P 500 Index lost 0.4% and the Dow Jones Industrial Average grew 0.4%.

3 Stocks to Watch on Friday: Ambarella Inc (AMBA), Smith & Wesson Holding Corp (SWHC) and Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)Thursday’s after-hours trading was affected by several companies reporting earnings, including Ambarella Inc (NASDAQ:AMBA), Smith & Wesson Holding Corp (NASDAQ:SWHC) and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA).

Here’s how the companies did:

Ambarella Inc (AMBA)

It was a bittersweet day for Ambarella as earnings topped estimates, while AMBA stock was lower after the bell.

The company earned $1.11 per share when excluding stock-based compensation and other items. Earnings were slated to come in at 94 cents per share for the company’s third quarter.

Revenue came in at $100.5 million, marking a year-over-year surge of 8%. Wall Street was calling for net sales of $93.7 million over the course of the three-month period.

Gross profit margin came in at 66%, topping the 65.7% figure from a year ago. However, Ambarella’s strong earnings showing was overshadowed by its outlook for the current quarter.

The holiday period is expected to be slow for the company, with earnings expected to come in at around $84 million to $87 million, while analysts were hoping for earnings of $90.3 million.

AMBA shares were down 6.1% after hours.

Smith & Wesson Holding Corp (SWHC)

It was a puzzling Thursday for Smith & Wesson as the company’s earnings and its current-quarter outlook both topped projections.

The company raked in $233.5 million over the course of its fiscal second quarter. Meanwhile, analysts polled by FactSet were hoping for revenue of $228 million for the period.

Adjusted earnings were also strong for Smith & Wesson, coming in at 68 cents per share. The figure was 11 cents per share higher than what Wall Street expected.

For its third quarter, the company updated its revenue outlook from being in the range of $220 million to $230 million, to in the range of $230 million to $240 million.

SWHC stock lost 5.8% after the bell. Perhaps the decline could be a response to Smith & Wesson CEO James Debney’s bullish comments on the sale of firearms for the coming months.

Black Friday sales gave the company a boost, and Debney suggested that the arrival for President Trump will help to “normalize” the gun retail industry, which was quite volatile under President Obama.

Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)

Ulta Salon investors were thrilled to hear how the beauty company performed in its latest earnings call.

The company’s third-quarter data included earnings of $1.40 per share, which was better than the $1.37 per share that Wall Street was expecting. Meanwhile, revenue came in at $1.13 billion.

Net sales were better than the $1.11 billion that the consensus estimate called for over the course of Ulta Salon’s most recent three-month period. Revenue marked a 24.3% increase year-over-year.

The company turned its focus towards e-commerce in the current fiscal year as online sales improved by 59%. Ulta Salon also benefited from its decision to expand its selection of beauty products.

Comparable sales were 16.7% better than they were a year ago, while fourth-quarter earnings are slated to come in at around $2.08 to $2.13 per share, topping the estimate of$2.06 per share.

Revenue is slated to be around $1.54 billion for the quarter, higher than the $1.52 billion it previously posted.

ULTA stock surged 6.6% after hours Thursday.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/12/3-stocks-watch-friday-ambarella-inc-amba-smith-wesson-holding-corp-swhc-ulta-salon-cosmetics-fragrance-inc-ulta/.

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