Why Lululemon Stock Is Stretching Higher

Lululemon Athletica Inc. LULU shares are moving Friday after the company reported its third-quarter financial results after the market close on Thursday.

What To Know:

Lululemon reported third-quarter revenue increased 19% year-over-year to $2.2 billion, beating the consensus estimate of $2.19 billion. The company also reported quarterly earnings of $2.53 per share, beating the consensus estimate of $2.28 per share.

The company also announced the approval of an additional $1 billion share buyback program.

Shares of LULU initially traded lower following the earnings report, possibly due to the company's fourth-quarter guidance of revenue in the range of $3.135 billion to $3.17 billion versus estimates of $3.18 billion.

Several analysts updated price targets on Lululemon Athletica after the earnings report:

• JP Morgan analyst Matthew Boss maintained Lululemon Athletica with an Overweight and raised the price target from $489 to $500.
• Needham analyst Rick Patel maintained Lululemon Athletica with a Buy and raised the price target from $470 to $525.
• Barclays analyst Adrienne Yih maintained Lululemon Athletica with an Overweight and raised the price target from $480 to $530.
• Keybanc analyst Noah Zatzkin maintained Lululemon Athletica with an Overweight and raised the price target from $450 to $500.
• Morgan Stanley analyst Alexandra Steiger maintained Lululemon Athletica with an Overweight and raised the price target from $437 to $493.
• Deutsche Bank analyst Gabriella Carbone maintained Lululemon Athletica with a Buy and raised the price target from $500 to $502.

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LULU Price Action: According to Benzinga Pro, Lululemon shares are up nearly 3% at $478.00 at the time of publication.

Image: irongroup from Pixabay