Ambarella (NASDAQ:AMBA): Ambarella continues to exceed expectations quarter after quarter despite the ongoing troubles of its best client GoPro (NASDAQ:GPRO). The chipmaker produces the technology found in action cameras but has recently partnered with Alphabet (NASDAQ:GOOGL) to enhance and diversify its offerings. Meanwhile, the recent acquisition of VisLab S.r.l expands Amabrella’s focus beyond action cameras and into automotive. The development of high performance products along with new acquisitions boosts its position in several target markets; automotive, IP security, wearables and action cameras.
Ulta Salon (NASDAQ:ULTA): Ulta hit its first roadblock last quarter despite posting double digit gains on the top and bottom line and also raising guidance. Comparable store sales increased by 14.4% compared to an increase of 10% from a year earlier. On the surface these metrics are remarkable but analysts had become accustomed to blowout performances in recent years. Since the report, the stock has traded sideways but is still 53% higher in 2016. Ulta’s staunch position in the cosmetics industry along with its sizeable gains quarter after quarter should have shareholders optimistic about the future outlook. Last quarter’s blunder has scaled back expectations for the upcoming report but should also help the company return to its old ways.
Workday (NYSE:WDAY): Workday has suffered the same fate as many of its peers; decelerating revenue growth coupled with mounting quarterly losses. This has had very little impact on the stock which has increased by 7% in 2016. Historically shares have remained flat immediately through the print but tend to decline 30 days following a report. Analysts expect these trends to persist in the upcoming report as Workday continues on its maturation process. Earnings are expected to fall to a 2 cent loss per share on $403.35 million in revenue, according to the Estimize consensus data.
Smith & Wesson (NASDAQ:SWHC): Gun sales soared in the 8 years under President Obama but this could soon change when Trump takes office. The President-elect has openly supported the second amendment and will undoubtedly leave gun control unregulated. This could have an inverse relationship on gun companies like Smith & Wesson which was firing on all cylinders (no pun intended) until recently. In the meantime, gun sales should remain high for the remainder of the year as many believed Hillary Clinton would succeed in November’s election. This spillover won’t last forever though, and the firearm retailer will need to figure out new ways to spur sales.
The Kroger Co (NYSE:KR): Kroger is among the largest grocery brands in the country. Its recent efforts to open new stores along with providing a new organic offering will help bolster its market share. Organic and non GMO products typically cost more than processed counterparts which should augment same store sales and margins moving forward. Meanwhile, better than expected earnings from Whole Foods (NASDAQ:WFM) earlier this month sets a favorable tone for Kroger this morning. Kroger is in a better position than Whole Foods so its results are likely to be just as impressive. Despite its staunch market position, Kroger is seeing increasing competition. The newly launched food delivery service by Amazon (NASDAQ:AMZN) will undoubtedly pose a threat to all traditional supermarkets. This long term threat isn’t likely to impact earnings for at least a couple quarters into the future.