Advanced Micro Devices (AMD) and Super Micro Computer were among the top performers in after-hours trading, with AMD surging 7% on strong revenue guidance and Super Micro jumping 19% on positive profit outlooks. Conversely, Arista Networks saw a significant drop of nearly 14% due to a slight miss in gross margin, while EV maker Lucid Group and email marketing platform Klaviyo also experienced notable declines following their respective earnings reports.
Other companies making moves included DaVita, which gained 3% on exceeding earnings expectations and raising full-year guidance, while Skyworks Solutions and Devon Energy saw modest declines amid mixed results and guidance.
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The stock market buzzed with activity after the closing bell, as several key companies announced significant news, driving substantial after-hours trading. Advanced Micro Devices (AMD) led the charge, experiencing a remarkable 7% surge following the release of robust second-quarter guidance that significantly surpassed analyst expectations. The chip giant projects second-quarter revenue between $11.2 billion, plus or minus $300 million, comfortably beating the consensus estimate of $10.52 billion. This strong outlook follows impressive first-quarter results that exceeded top and bottom-line expectations.
The server technology sector also saw a standout performance, with Super Micro Computer jumping an impressive 19%. The company's fourth-quarter profit expectations, ranging from 65 cents to 79 cents per share, significantly outperformed Wall Street's prediction of 55 cents. While its third-quarter adjusted earnings of 84 cents per share on revenue of $10.24 billion fell short of analyst revenue expectations ($12.39 billion), the forward-looking guidance has clearly energized investors.
In contrast, Arista Networks, a prominent player in cloud networking, faced headwinds, dropping nearly 14%. Despite second-quarter revenue forecasts aligning closely with market expectations ($2.8 billion versus $2.77 billion), a slight miss in adjusted gross margin for the first quarter (62.4% versus the anticipated 62.7%) appears to have spooked investors.
Lucid Group, the electric vehicle manufacturer, saw its shares decline by 2%. The company reported a wider-than-expected first-quarter GAAP loss of $3.46 per share and revenue of $282.5 million, which missed the consensus call of $440.4 million. Similarly, email marketing platform provider Klaviyo plummeted 18% after issuing second-quarter adjusted operating income guidance that fell short of consensus ($47.5 million to $50.5 million versus $52.7 million). Adding to the concerns, Klaviyo announced that its Chief Financial Officer, Amanda Whalen, is departing, with plans to transition to an advisory role through November.
On a positive note, kidney dialysis service provider DaVita added 3% after reporting first-quarter adjusted earnings and revenue that surpassed analyst forecasts. The company also raised its full-year earnings guidance to a range of $14.10 to $15.20 per share, an increase from its previous forecast of $13.60 to $15 per share.
Skyworks Solutions, a wireless networking service provider, experienced a nearly 3% dip. Its third-quarter guidance projected revenue between $900 million and $950 million, with adjusted earnings of $1.03 per share at the midpoint, slightly exceeding analyst revenue expectations ($861.2 million) but potentially raising questions about profitability margins. Finally, oil and gas producer Devon Energy saw its shares drop nearly 2% after reporting first-quarter adjusted earnings of $1.04 per share, slightly below the FactSet consensus of $1.06 per share, with production also falling marginally short of expectations.
