Top Stock Gainers & News Inspiring Rally - AMWD, SFIX, FMI, AMBA, CVNA

(RTTNews) - American Woodmark Corp. (AMWD), Stitch Fix Inc. (SFIX), Foundation Medicine Inc. (FMI), Ambarella Inc. (AMBA), and Carvana Co. (CVNA) were among the top gainers on Friday, Dec. 1, 2017.

American Woodmark Corp. (AMWD) shares spiked up 28.21% on Friday, following the company's acquisition of RSI Home Products for about $1.075 billion. Also, the company delivered upbeat Q2 profit on Friday.

American Woodmark entered into a definitive agreement and plan of merger with RSI Home Products for an enterprise value of about $1.075 billion, including $140 million in American Woodmark stock, $346 million in cash, and $589 million of acquired debt. The acquisition is expected to be immediately accretive to American Woodmark's profit margins and EPS, excluding transaction costs and before giving effect to anticipated synergies.

Cary Dunston, American Woodmark's Chairman and CEO, said, "The acquisition of RSI will further enhance American Woodmark by creating a broader product and brand portfolio that is well-positioned to fully leverage our industry-leading service platform across all channels and to drive improved profitability and long-term value for shareholders..."

Q2 net income was $19.8 million or $1.21 per share in the current fiscal year versus $17.6 million or $1.07 per share last year. Street expected EPS of $1.26. Despite the negative impact from hurricanes, the company experienced growth in both the new construction and dealer channels during the second quarter of fiscal year 2018. The quarter proved to be challenging from a revenue perspective, with a 4% year-over-year growth, the company said.

Looking ahead, the cabinet manufacturer expects to grow its total sales in the mid-single-digit rate for fiscal 2018. Despite material inflation and transportation rate increases, the company expects to improve operating margins for fiscal 2018.

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Stitch Fix Inc. (SFIX) continued to rally, since its IPO last week. Although there was no company-specific news, the personalized online shopping service rose 17.76% on Friday, along with other retailers in connection with holiday optimism.

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Shares of Foundation Medicine Inc. (FMI) climbed 17.67%, after the company's test that detects cancer-causing gene mutations won approval both from the FDA and from the Center for Medicare and Medicaid Services.

The molecular information company announced that the FDA approved FoundationOne CDx, the company's comprehensive companion diagnostic test for solid tumors. FoundationOne CDx is intended for use by health care professionals to help inform cancer treatment management in accordance with professional guidelines for patients with solid tumors.

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Ambarella Inc. (AMBA) shares advanced 14.3% on Friday, after the video processing chip developer reported better-than-expected profit for the third quarter.

Q3 GAAP net income was $11.7 million or $0.34 per share versus $29.0 million or $0.84 per share last year. Non-GAAP net income was $25.7 million or $0.75 per share versus $38.4 million or $1.11 per sharelast year. The consensus estimate for EPS was $0.67. But, revenue declined 11.4% to $89.1 million from $100.5 million previous year.

Ambarella sees Q4 revenue to be between $68.0 million and $72.0 million.

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Shares of Carvana Co. (CVNA), an online-only used car dealer, moved up 10.49%. Last month, the company reported Q3 results, and said it expects to end 2017 with triple-digit growth in unit sales and revenue, progress towards its mid-term GPU target of $3,000, and a truly national footprint.