Wednesday was generally a down day on Wall Street, as major stock indexes posted modest losses. Investors remain conflicted between the ongoing prospects for gridlock in Washington and the ebb and flow of economic conditions both in the U.S. and globally. Yet amid the best stocks in the market were several companies that have faced past challenges but have charted a way back toward sustained growth. Snap ( SNAP 2.42% ), Capri Holdings ( CPRI 3.56% ), and Skyworks Solutions ( SWKS 2.02% ) were among the top performers. Here's why they did so well.
Snap stops the bleeding
Shares of social media company Snap soared 22% after it released its fourth-quarter financial report. The Snapchat operator said that revenue jumped 36% during the quarter, but more importantly, daily active user counts bottomed out at around 186 million. Snap continues to lose a lot of money, but CEO Evan Spiegel said that the company is "substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters" while growing revenue considerably. Snap has further to go to convince some investors its turnaround is real, but the shares are already reflecting a rosier outlook for the social media player.
Capri comes back into fashion
Capri Holdings saw its stock climb more than 11% following its release of fourth-quarter financial results. Revenue was flat from year-ago levels, but even though adjusted net income was down over the same period, the resulting earnings were far better than many had feared. Although the key Michael Kors segment remains under pressure, CEO John Idol is hopeful that efforts to turn the ailing fashion retailer around will bear fruit in the coming year. Capri still has the challenge of integrating Versace into the fold, but investors are happier than they've been in some time about the trends they've started to see.
Skyworks heads skyward
Finally, shares of Skyworks Solutions finished higher by 11.5%. The semiconductor company continued to deal with fundamental challenges, posting an 8% drop in revenue during the first quarter of fiscal 2019 and watching adjusted net income decline by 13% from year-earlier levels. Moreover, Skyworks sees tough times ahead in the current quarter, with further drops in sales and profit. Yet those numbers weren't as bad as many had feared, and management expressed its optimism by announcing a $2 billion stock buyback authorization. With tech giants rebounding from big declines late in 2018, investors are hopeful that business will pick up at Skyworks as well.