2 After-Hours Stock Movers You Can't Afford to Miss

Stock market investors had hoped that the Federal Reserve would look to slow down its pace of interest rate increases, but that seems increasingly unlikely to be in the cards. Testimony from Federal Reserve chair Jerome Powell included comments that suggested a higher trajectory for interest rates than many had thought. That led to declines of between 1% and 2% for the Dow Jones Industrial Average (^DJI 0.40%), S&P 500 (^GSPC 1.02%), and Nasdaq Composite (^IXIC 2.02%), with the Dow somewhat surprisingly doing the worst of the three.

Data source: Yahoo! Finance.

Earnings reports are still trickling in, and a couple of stocks that reported their latest results saw sizable moves after the market closed. CrowdStrike Holdings (CRWD 2.03%) gained some ground as the cybersecurity company held up well, but Stitch Fix (SFIX 0.47%) gave up some ground. Read on to learn more about both stocks and what their future might hold.

CrowdStrike posts some gains

Shares of CrowdStrike Holdings were up 6% after hours late Tuesday afternoon. The company behind the Falcon software platform for cybersecurity and related services reported fiscal fourth-quarter financial results for the period ending Jan. 31 that gave investors  more confidence in CrowdStrike's ability to weather a tough economic environment.

CrowdStrike's growth remained strong. Revenue climbed 48% year over year to $637 million, with a similar-sized increase in subscription-based revenue to $598 million. Annual recurring revenue also rose 48% to produce a run rate of $2.56 billion, up $222 million over the past three months. Adjusted net income fared even better, jumping 59% from year-ago levels to $111.6 million and producing adjusted earnings of $0.47 per share.

Key metrics for CrowdStrike continued to improve. The company added almost 1,900 new subscription customers to bring its total above the 23,000 mark, which was 41% higher than it was 12 months ago. Meanwhile, more of CrowdStrike's customers have adopted larger numbers of modules on the Falcon platform, with 62% of clients taking advantage of at least five services.

Investors generally liked CrowdStrike's guidance for fiscal 2024, which included sales of $2.955 billion to $3.015 billion and adjusted earnings of between $2.21 and $2.39 per share. Those figures suggest that CrowdStrike will continue to grow and is emphasizing profitability, both of which are priorities for investors right now.

Stitch Fix is still out of style

Stitch Fix shares were down 5% in after-hours trading. The fashion delivery specialist released fiscal second-quarter financial results for the period ending Jan. 28, and even returning interim CEO Katrina Lake hasn't been able to execute a quick turnaround for the company as of yet.

Stitch Fix continued to see its business contract. Revenue came in at $412 million, down 20% year over year. The company lost $65.6 million, working out to $0.58 per share. The number of active clients using Stitch Fix's service dropped 445,000 over the past 12 months, finishing at 3.574 million.

The tough times aren't likely to end anytime soon. Stitch Fix projected that revenue will drop 20% to 22% year over year in the fiscal third quarter as well, and full-year fiscal 2023 sales of $1.625 billion to $1.645 billion suggested that the company's restructuring efforts have further to go.

Stitch Fix has tried to bounce back a bit, with early ties to artificial intelligence raising interest in the company. Yet until its financial results improve, it could be hard for the stock to produce sustained gains.