These 2 Stocks Are Set to Soar Tomorrow

Stock markets got a nice lift on the first day of June, as the Nasdaq Composite (^IXIC -2.05%) in particular continued its run higher to close at its highest level in nearly a year. The S&P 500 (^GSPC -0.88%) and Dow Jones Industrial Average (^DJI 0.56%) also posted solid gains.

Data source: Yahoo! Finance.

Earnings reports kept coming in after the market had closed for the day, with some companies getting a boost, while others plunged.

On the positive side, both Lululemon Athletica (LULU 1.43%) and MongoDB (MDB -2.41%) saw their shares soar after reporting their latest financial results. Read on to get a better sense of why investors were so pleased with the two companies and whether the gains for their stocks could continue.

Lululemon stretches higher

Shares of Lululemon Athletica jumped nearly 14% in after-hours trading on Thursday. The move higher recaptured a good deal of the ground that the yoga and athleisure apparel specialist had lost in the last couple of weeks amid rising concerns about the health of the overall retail industry.

Lululemon's results for the fiscal first quarter ended April 30 showed considerable strength. Revenue climbed 24% year over year to $2 billion, with international sales outside North America soaring by 60% from year-ago levels. Comparable-store sales were up a healthy 13%, and the direct-to-consumer segment enjoyed a 16% rise in net revenue.

Efforts to improve efficiency resulted in a huge gain of four percentage points in operating margin, rising to 20.1%. That helped boost Lululemon's earnings to $2.28 per share, up from $1.48 per share in the year-ago period.

In addition, Lululemon was optimistic about how the rest of the fiscal year will go. The company projected revenue of between $9.44 billion and $9.51 billion, which would work out to a growth rate of about 17%. Earnings projections of between $11.74 and $11.94 per share were also favorably received. CFO Meghan Frank attributed the stronger guidance to healthy sales trends in China, which has been later to reopen from pandemic-imposed restrictions than other parts of the world.

Lululemon has enjoyed a loyal customer base and has been able to bounce back from past adversity. Despite challenges across retail, Lululemon appears to be doing all the right things to sustain its forward momentum and keep its business growing.

MongoDB bucks the IT spending trend

Shares of MongoDB managed an even more impressive rise, climbing 22% in after-hours trading. The up-and-coming cloud database company's fiscal first-quarter results for the period ended April 30 continued its upward trajectory and painted an upbeat picture of the future.

MongoDB reported a 29% rise in revenue to $368 million, with gains in both subscription and services revenue. Adjusted net income nearly tripled year over year to $45.3 million, and that worked out to $0.56 per share in earnings.

Guidance for the remainder of the fiscal year was also optimistic. MongoDB expects sales of between $1.522 billion and $1.542 billion, with adjusted earnings of between $1.42 and $1.56 per share.

CEO Dev Ittycheria said all the right things, pointing to MongoDB's ability to benefit from embedding AI in applications as a key growth driver. With so much success in driving cloud-related revenue, MongoDB could continue to see sales rise at impressive rates well into the future if favorable long-term trends remain intact.