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Custom clothing service Stitch Fix (NASDAQ: SFIX) and security company ADT (NYSE: ADT) make the headlines Monday after trading hours, while the shares of both companies have evolved a lot.
- Stitch Fix has impressed investors with solid quarterly results and optimistic forecasts.
- ADT posted solid revenue growth but was disappointed with adjusted earnings per share.
Here is an overview of each of these stories.
Source of the image: Stitch Fix.
Stitch Fix
Shares of the custom online clothing company Stitch Fix soared after the market closed on Monday. This jump followed the company's second-quarter update, which had better-than-expected second quarter financial results and customer growth.
The company recorded a turnover of $ 370.3 million, up 25% over the previous year. This figure was higher than analysts' consensus forecasts for a turnover of $ 365.9 million.
Net earnings for the quarter were $ 12 million, which equates to earnings per share of $ 0.12. This is significantly more than net income and earnings per share of $ 3.6 million and $ 0.02 in the prior year quarter, respectively. On average, analysts expected earnings per share of $ 0.05 for the second quarter of fiscal 2019.
Stitch Fix also said it has 3 million customers, up 18% from one year to the next.
Impressively, the company has maintained its goal of spending less in advertising as a percentage of revenue during the quarter and has always been able to foster customer acquisition through its digital channels.
To make the quarterly update even more impressive, Stitch Fix has provided solid guidance for both its third quarter and full year, 2019. Management said it expects third-quarter revenue to increase. from 22% to 26% compared to the previous year. revenues are expected to increase by 25% to 27% over fiscal year 2018.
The Stitch Fix action was up 24.1% after 7:20 pm at the negotiations. EDT.
ADT
Residential and residential security firm ADT saw its shares drop sharply on Monday after the market closed. The decline in the stock came as ADT posted disappointing results for the fourth quarter.
In the fourth quarter, ADT recorded a business turnover of $ 1.19 billion, up 7% over the previous year. The company's non-GAAP loss per share is $ 0.04, up from a non-GAAP loss of $ 0.06 in the corresponding quarter of the year. former. While revenue was higher than analysts 'consensus forecast of $ 1.16 billion, ADT's non-GAAP loss was much worse than analysts' average earnings forecast. non-GAAP share of $ 0.12.
ADT's general manager, Jim DeVries, has been optimistic about the company's results and its continued momentum, noting that the quarter was "strong" and above management's financial outlook for the period .
"We continue to improve our operating systems and strengthen our leadership in advanced home automation with the launch of ADT Command and Control," said DeVries.
Shares were down 11.2% after 7:20 pm after normal business hours. EDT.
Daniel Sparks has no position in the mentioned actions. The Motley Fool owns shares and recommends Stitch Fix. Motley Fool has a disclosure policy.
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