Stocks waffled between positive and negative territory Thursday as corporate earnings season continued to gain momentum. The Dow Jones Industrial Average and the S&P 500 both posted modest gains.

But several individual stocks ended deep in the red after reporting quarterly results, including Sleep Number (NASDAQ:SNBR), Skechers (NYSE:SKX), and Atlassian (NASDAQ:TEAM).

Sleep Number's not-so-nightmarish quarter

Shares of Sleep Number plunged 18.5% after the bed manufacturer released record quarterly results that fell short of Wall Street's expectations.

On one hand, Sleep Number's net sales climbed 9.7% year over year to a record $426.4 million -- slightly below analysts' consensus estimates for $427.5 million -- comprised of roughly 5% growth from new locations and a weaker-than-expected 5% increase in comparable-store sales.

On the other hand, that translated into net income of $25.4 million, or $0.80 per share, well above estimates for $0.73 per share and up 54% from $0.52 in the year-ago period.

Falling stock charts superimposed over digital map of the world

Image source: Getty Images.

Sleep Number also reiterated its outlook for 2019 EPS of $2.25 to $2.75, assuming revenue growth of 6% to 10%. But with shares already up 50% so far in 2019 leading up to this report, its relative top-line shortfall this quarter gave traders more than enough reason to bid down the stock today.

Skechers takes a tumble

Skechers stock fell 10.5% after the casual footwear company announced record results that failed to meet analysts' expectations. First-quarter 2019 revenue climbed 2.1% year over year (or 5.2% in constant currency) to $1.28 billion, as 9.3% international growth more than offset a 6.3% domestic decline. Skechers' net earnings dropped 7.6% to $108.8 million, however, and slumped 5.3% on a per-share basis to $0.71.

Skechers' results were near the lower ends of its own guidance ranges provided in February. And analysts, on average, were looking for earnings of $0.73 per share on revenue of $1.3 billion.

Worse yet, Skechers forecast second-quarter revenue of $1.2 billion to $1.225 billion, with earnings per share of $0.30 to $0.35. Even the high ends of both ranges fell below consensus predictions for Q2 earnings of $0.39 per share on revenue of $1.23 billion.

Atlassian's soft guidance

Finally, shares of Atlassian dropped 8.3% after the Australian enterprise software giant posted strong fiscal third-quarter results, but followed them with a seemingly conservative earnings outlook.

Revenue soared 38% year over year to $309.3 million, translating into adjusted (non-IFRS) net income of $52.4 million, or $0.21 per share. Most investors were only anticipating adjusted earnings of $0.18 per share on revenue of $304.7 million.

For the fiscal fourth quarter, however, Atlassian forecast revenue of $329 million to $331 million, with adjusted net income of $0.16 per share. This guidance was technically mixed relative to consensus estimates for earnings of $0.19 per share on lower revenue of $327.6 million.

Though Atlassian tends to underpromise and overdeliver, the market wasn't in a forgiving mood with shares up nearly 80% over the past year.