- Fabrinet led the late movers. The optical packaging provider jumped more than 10% in extended trading on Monday after guiding fiscal second-quarter adjusted earnings of $4.77 to $4.92 a share on revenue of $1.6 billion to $1.65 billion, well above the $4.43 and $1.48 billion analysts expected, per FactSet.
- Guidance raises drove the biggest gains. Upwork surged 10% after forecasting full-year adjusted earnings of $1.45 to $1.47 a share, above the $1.39 consensus, and Lattice Semiconductor jumped 8% after guiding fourth-quarter revenue of $325 million to $345 million against a $293 million LSEG estimate. Ibotta gained 13% after its fourth-quarter revenue outlook of $94 million to $98 million beat expectations.
- Clorox beat by a wide margin. The bleach maker added 2% after posting adjusted fiscal first-quarter earnings of $1.55 a share on revenue of $1.91 billion, compared with the $1.07 and $1.88 billion analysts surveyed by LSEG expected. Organic sales growth also topped estimates.
- On Semiconductor went the other way. Shares fell about 2% after the company agreed to buy power converter maker Ferric for $600 million in cash, plus up to $175 million tied to revenue milestones, and guided fourth-quarter adjusted earnings of 95 cents to $1.07 a share against a 95-cent consensus.
What Happened?
After-hours trading on Monday was driven by a busy slate of earnings reports, with companies that raised guidance rewarded even as the regular session ended with the Nasdaq down 1.07%. Apple fell 2% on a disappointing margin forecast and Palantir slipped despite a beat, while smaller names posted the biggest gains. The moves came the day before the US midterm elections.
Why It Matters?
The reaction shows investors are paying up for clear forward guidance during a choppy tech market. Fabrinet’s outlook is another sign of strong demand for optical components tied to AI data centers, the same theme behind Marvell’s $115 billion deal for Lumentum announced Monday. Lattice’s beat suggests some corners of the chip market are holding up despite a broad semiconductor selloff, and Clorox’s organic sales beat shows demand holding up for household staples.
What’s Next?
These moves will be tested in Tuesday’s regular session, when after-hours gains can fade or widen with the broader market. AMD reports after Tuesday’s close, a key read on chip demand. Investors will watch whether Fabrinet and Lattice can hold their gains if the semiconductor selloff continues, and whether On Semiconductor’s Ferric deal adds to its revenue as planned.
