After-hours trading saw significant movement among key stocks, with Gap leading gainers, jumping 14% on news of a new Old Navy CEO and strong Q2 earnings. While Workday and Elastic N.V. also climbed on positive reports and guidance, tech firms like Autodesk, Rubrik, and SentinelOne faced headwinds with disappointing projections or slight misses on margins, despite some beating on other metrics.
Extended trading hours painted a diverse picture for Wall Street, with several prominent companies experiencing significant shifts. Retail giant Gap led the charge, with its shares rocketing approximately 14% following a dual announcement: Michael Francis is set to take the reins at its Old Navy brand from November 2nd, succeeding Haio Barbeito. This leadership transition arrived alongside impressive second-quarter adjusted earnings, which outperformed LSEG's consensus estimate by hitting 52 cents per share against a projected 48 cents.
Conversely, the semiconductor sector saw Marvell Technology slide 6%. Despite a current quarter adjusted earnings forecast of $1.10 per share (plus or minus 5 cents) slightly above analyst expectations of $1.07 per share, its non-GAAP gross margin projection for the period—a range of 57.5% to 58.5%—fell short of the StreetAccount consensus call for 58.5%.
Enterprise software provider Workday enjoyed a modest gain of nearly 1% as it comfortably surpassed LSEG analyst estimates for both its top and bottom lines in the second quarter, signaling robust performance.
Digital security firm Rubrik wasn't as fortunate, tumbling 7%. While the company delivered a beat on both revenue ($427 million vs. $396 million LSEG) and earnings per share (20 cents excluding items vs. 4 cents analyst estimate), its second-quarter non-GAAP gross margin of 81% narrowly missed the StreetAccount consensus of 81.7%, leading to investor apprehension.
The 3D design software maker, Autodesk, saw its stock dip 5% as its earnings projections failed to impress. The company's third-quarter adjusted earnings outlook, set between $3.04 and $3.09 per share, came in below LSEG analysts' expectations of $3.14 per share. Full-year adjusted earnings guidance of $12.52 to $12.60 per share also hovered at or below the anticipated $12.60.
In a strong counter-move, data analytics specialist Elastic N.V. witnessed an impressive 20% surge in its shares. This significant jump was fueled by full-year guidance that comfortably exceeded analyst expectations, with adjusted earnings projected between $3.29 and $3.37 per share on revenue of $1.998 billion to $2.010 billion, compared to LSEG's projections of $3.24 per share and $1.99 billion. The company also reported stronger-than-expected first-quarter adjusted earnings, revenue, and operating income.
Finally, cybersecurity firm SentinelOne shed almost 4% as a weak outlook for its current-quarter and full-year earnings per share overshadowed an otherwise strong second-quarter performance on both revenue and earnings lines. This highlights how forward-looking guidance often dictates market reaction more than past results.
