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Today's After-Hours Moves: These 2 Stocks Are Rising

By Daniel Sparks – Updated Apr 11, 2019 at 1:28PM

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Both stocks crushed analysts' expectations for profitability.

Two stocks -- unmanned aircraft and missile system company AeroVironment (AVAV -5.62%) and semiconductor company Ambarella (AMBA -3.91%) -- saw their shares jump during after-hours trading on Tuesday, following the release of their latest quarterly results.

Here's a look at what's moving the shares of these two stocks.

A chart showing a stock price moving higher

Image source: Getty Images.

AeroVironment

AeroVironment, a company that provides unmanned aircraft systems and tactical missile systems for defense, government, and commercial customers, saw its stock jump in after-hours trading, having risen about 10% as of 6 p.m. EST. The stock's gain followed the company's fiscal 2019 third-quarter results, which boasted better-than-expected earnings per share and strong guidance.

Revenue for the period rose 38% year over year to $75.3 million, putting the company's top line slightly above the consensus analyst estimate for the key metric. Earnings per share for the period, however, crushed analysts' estimates. EPS was $0.35, up from $0.02 in the year-ago quarter and beating analysts' average forecast for $0.14.

Management also notably raised its outlook for full-year fiscal earnings per share. The company now expects fiscal 2019 EPS between $1.60 and $1.80, up from a previous forecast for EPS between $1.30 and $1.50. 

The company's profitability benefited from a higher gross profit margin. AeroVironment's gross margin rose seven percentage points year over year, from 33% to 40%. A higher gross profit margin, the company said, was a function of higher sales, demonstrating the scalability of AeroVironment's business.

Check out the latest earnings call transcripts for AeroVironment and Ambarella.

Ambarella

Though Ambarella's overall business is still in decline, investors betting on the company's turnaround plans may have been given a glimmer of hope on Tuesday.

Shares of semiconductor company Ambarella shot about 6% higher as of 6 p.m. EST in after-hours trading. The stock's gain followed the company's fourth-quarter results, which featured higher-than-anticipated non-GAAP earnings per share.

Fourth-quarter revenue fell 28% year over year to $51.1 million, while non-GAAP earnings per share declined from $0.47 in the year-ago quarter to $0.14. Revenue barely beat analysts' average forecast for $50.9 million, and non-GAAP earnings per share was 10 cents higher than the consensus estimate.

"Strategically, fiscal 2019 was one of the most important years in Ambarella's 15-year history as the company continued to execute on its transformation from a pure video processing company to a computer vision company," said Ambarella CEO Fermi Wang in the company's earnings release.

For its first quarter of fiscal 2020, management expects revenue to be about $47 million, plus or minus 3%. In addition, the company guided for a non-GAAP gross margin between 59% and 60%.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Ambarella. The Motley Fool recommends AeroVironment. The Motley Fool has a disclosure policy.

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Stocks Mentioned

AeroVironment, Inc. Stock Quote
AeroVironment, Inc.
AVAV
$82.43 (-5.62%) $-4.91
Ambarella, Inc. Stock Quote
Ambarella, Inc.
AMBA
$57.57 (-3.91%) $-2.34

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