Hot Stocks: GPS, AEO drop on earnings; ZS, MRVL rally
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The retailing rollercoaster continued in Friday's pre-market trading, with Gap (GPS) and American Eagle Outfitters (AEO) posting double-digit percentage declines after each announced disappointing earnings.
The release of financial figures had the opposite impact on Zscaler (NASDAQ:ZS) and Marvell Technology (MRVL). Both stocks rose after announcing stronger-than-projected results.
Decliners
Gap (GPS) lost ground in pre-market trading, dragged down by the release of disappointing quarterly results. Shares of the clothing retailer plunged almost 18% in pre-market action, undoing gains that it accumulated during a general retailing rebound over the past couple of days. 
GPS reported a quarterly loss that came in significantly wider than analysts had projected. Revenue dropped 13% from last year to reach $3.48B.
In addition, the company provided a devasting forecast. GPS predicted non-GAAP EPS of $0.30 to $0.60 for the full year, compared to analysts' consensus of $1.30.
American Eagle Outfitters (AEO) also suffered an earnings-inspired slide in pre-market action. Like fellow clothing retailer GPS, AEO missed expectations in Q1. 
The company said demand had been below expectations in the quarter, while gross margin contracted. Hurt by the quarterly report, AEO declined 13% before the opening bell.
Gainers
Earnings news prompted pre-market buying in Zscaler (ZS). Shares of the cloud security company rose 4% after topping expectations in Q3 and providing strong guidance. 
ZS revealed revenue that surged 63% from last year to reach $287M. Looking ahead, the company predicted a top-line figure of $304M to $306M, above the $291M that analysts were targeting.
Marvell Technology (MRVL) also received a boost from the release of quarterly results. The semiconductor developer exceeded predictions with its Q1 results, with revenue that climbed 74% from last year.
Following the earnings report, MRVL advanced about 3%.

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