Diamonds and Dogs
Time to hit the gym and see gains there as well as in your portfolio. Lululemon Athletica (LULU) has been on a roll coaster ride the last six months as a diamond, then dog, then diamond, then dog again. Hopefully, the stock is starting a new trend as a diamond once again. The stock is jumping $6 or 10% following better than expected earnings a nickel above forecasts. Revenue climbed 17% to $704.3 million, ahead of estimates of $693.4 million. The Canadian based retail company known for their workout and yoga clothing and accessories saw its children brand, Ivivva grow sales over 28% year over year from their website. Total online business brought in $401.5 million in sales, up 25% from the previous year. Let's hope Lululemon can keep stretching higher.
They call themselves a solution company, but today they need a solution for their own stock. After dropping 50% in the last year, Verint Systems (VRNT) stock is down another 10% today to its 52 week low following earnings. The company missed earnings estimates by a wide margin last night. For 2016, analysts were expecting earnings growth of 15% with modest revenue growth. Now the company is projecting no growth in 2016 for earnings or sales. On the plus side, the company is still profitable and will authorize a repurchase program of up to $150 million common stock over the next two years. Lets hope this helps.