Top 3 Earnings Today- Ambarella, Nutanix And Lululemon Athletica

Will an earnings beat lift Ambarella Inc (NASDAQ:AMBA) stock?

Top 3 Earnings Today- Ambarella, Nutanix And Lululemon Athletica

The low-power, high-definition video camera technology provider Ambarella Inc (NASDAQ:AMBA) is scheduled to report its Q2-2018 earnings today after the closing bell. Shares of Ambarella have not yet recovered from the Q1 earnings sell off in June. AMBA stock is still down nearly 10% since then. There are high expectations from the company's Q2 earnings to revive the stock. AMBA stock has benefitted recently from the technical set up which has given the stock some momentum ahead of earnings. The stock recently broke above its key Simple Moving Averages of 20-day, 50-day and the 100-day. The Moving Average Convergence Divergence (MACD) indicator turning bullish has also helped the Ambarella stock's cause. However, AMBA stock is now facing resistance from the long-term 200-day SMA. An earnings boost would be crucial to break the resistance and make a new upward move.

Wall Street expects the company to report a revenue of $70.45 million, translating to an 8.1% YoY rise. Coming to earnings, the Street's consensus estimate for EPS is a non-GAAP earnings of 44 cents per share, a 10 cents decline over the year ago quarter. The management had issued a revenue guidance of $69 million to $72 million. The management has also warned about the non-GAAP gross margins seeing some contraction and guided them to come in between 62% and 63.5% compared to 64.3% in Q1 of 2018 and 67.1% in Q2-2017. The soft outlook was one of the major reasons for the stock to sell off after the Q1 earnings. The company's declining profit margin has been a worry for investors and would be keenly watched in the latest earnings. The company has a strong record of beating earnings delivering an earnings/revenue beat in all the last 8 quarters.  The earnings whisper number of 48 cents per share also suggests the company is likely to beat analyst estimates. With GoPro (NASDAQ:GPRO), one of the biggest customers of Ambarella, delivering a strong Q2 earnings, expectations are also high for the company to deliver solid earnings and strong outlook.

Can Q4 earnings set Nutanix Inc (NASDAQ:NTNX) stock on the path of a new rally?

San Jose, California-based Hyperconverged infrastructure provider Nutanix Inc (NASDAQ:NTNX) will report its Q4-2017 earnings today, after the market close. NTNX stock had previously fallen below its IPO price at the beginning of the year. However, Nutanix shares have made a strong recovery after its Q3 earnings, having gained more than 28% since then. Investors would also be expecting that the latest earnings would set the stock on another upward move. There has also been a drastic reduction in volatility in the stock ahead of the earnings, which is very unlike Nutanix shares. The average analyst estimates for the company's fiscal fourth quarter are a loss of 38 cents per share on revenue of $218.05 million. These numbers imply a 2.5% YoY EPS growth, and 56% YoY revenue growth. The management guidance expected revenue to be in the range of $215 million to $220 million and a non-GAAP per share loss of around $0.38. The earnings whisper number, the Street's unofficial view, is a loss of 34 cents per share. Given the strong guidance and the earnings whisper number, it wouldn't be surprising if the company trumps expectations once again.

For a detailed preview of the Nutanix stock's Q earnings, please go through our NTNX earnings preview.

What to expect from Lululemon Athletica inc.(NASDAQ:LULU) second quarter 2017 earnings?

All eyes will be on Lululemon Athletica inc. (NASDAQ:LULU) when it reports its second quarter 2017 earnings after the market close, today, as the recent second quarter earnings for the athletic-apparel companies has been nothing short of a disaster. Lululemon's peer companies like Dick's Sporting Goods (NYSE:DKS) and Foot Locker (NYSE:FL) reported earnings much below the analyst estimates. This has also lead to a negative sentiment associated with Lululemon's Q2 earnings release with some believing that the company may also go down along the same line as its peers. The Canadian athletic apparel retailer had guided revenue to be in between $565 million and $570 million and a non-GAAP EPS of $0.33 to $0.35, translating into YoY rise of 10.3% and YoY drop of 10.52%, respectively, at the mid point of the guidance. Wall Street expects the apparel company to report a non-GAAP EPS of $0.35 on a revenue of $567.79 million. The analyst estimates imply a rise in revenue by nearly 10.4% YoY and a YoY decline of 7.89% in earnings.

On the technical front, the stock is seeing some major signals ahead of earnings. LULU stock has recently fallen below its key 50-day and 200-day SMAs. MACD has also turned bearish recently just before the earnings. LULU stock though presently enjoys strong support at the 100-day SMA, which is few handles below its last close. However, the stock is on the verge of a major bullish 'golden cross'. This phenomenon is defined as "a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level". In Lululemon's case, the stock's short-term 50-day SMA is on the verge of breaking above its long-term 200-day SMA. This is a major bullish signal which could set the stock on the path to touch this year's high. The current earnings whisper number for Lululemon is an EPS of 37 cents per share. This suggests the company should beat the earnings analyst estimates. A strong earnings followed by the technical breakout could set the stock for a post earnings rally.

LULU stock daily chart

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Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

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