After-Hours News: Five Below, lululemon athletica, and Quantenna Communications Make Headlines

MarketsMotley Fool

Today's after-market news includes two earnings reports and one acquisition announcement. Five Below (NASDAQ: FIVE) and lululemon athletica (NASDAQ: LULU) reported their fourth-quarter results, and ON Semiconductor (NASDAQ: ON) announced an agreement to acquire Quantenna Communications (NASDAQ: QTNA) in an all-cash transaction.

Here's a look at each of these stories.

Continue Reading Below

Five Below earnings

Value retailer Five Below announced fourth-quarter sales of $602.3 million, representing 19.4% year-over-year growth. When excluding a 53rd week in the company's fiscal 2017, sales were up 23.2%. Earnings per share increased 31.4% year over year to $1.59. Excluding fiscal 2017's 53rd week, the metric rose 34.7%.

"We saw broad-based strength across our worlds as our incredible, trend-right value offering and fun in-store experience drove both new and existing customers to Five Below," said Five Below CEO Joel Anderson in the company's fourth-quarter earnings release.

Importantly, Five Below's comparable sales increased 4.4%, echoing the strong comparable sales growth that value retailer Ollie's Bargain Outlet posted yesterday.

Five Below management expects more growth in comparable sales in fiscal 2019, guiding for comparable sales to rise approximately 3% during the year.

lululemon athletica earnings

Lululemon impressed investors with better-than-expected sales and earnings per share, sending shares more than 10% higher in after-hours trading as of 7:40 p.m. EDT.

The Canadian athletic apparel company's fiscal fourth-quarter revenue soared 26% year over year to $1.2 billion, with total comparable sales rising 17% year over year on a constant dollar basis when excluding revenue from the 53rd week of fiscal 2017. Non-GAAP earnings per share for the quarter were $1.85, up from $1.33 in the year-ago quarter.

On average, analysts were expecting fiscal fourth-quarter revenue and earnings per share of $1.15 billion and $1.74, respectively.

ON Semiconductor to acquire Quantenna Communications

ON Semiconductor announced on Wednesday afternoon that it's acquiring Quantenna, a global leader in performance Wi-Fi solutions. Under the agreement, ON will acquire Quantenna for $24.50 per share in an all-cash deal.

Shares had jumped about 17% in after-hours trading as of 7:40 p.m. EDT, rising from the $20.50 price at the market close to around $24.

"The acquisition of Quantenna is another step toward strengthening our presence in industrial and automotive markets," said ON CEO Keith Jackson in a press release about the deal.

The transaction is expected to close in the second half of 2019 but is subject to "approval by Quantenna's stockholders, regulatory approvals, and other customary closing conditions," the press release stated.

10 stocks we like better than Lululemon AthleticaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Lululemon Athletica wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of Quantenna Communications. The Motley Fool recommends Five Below and Lululemon Athletica. The Motley Fool has a disclosure policy.