Goldman Sachs analyst Laura Conigliaro reiterated a "buy" rating on the stock and said margins were much stronger than expected. "We like the stock set-up here," the analyst said. "There's a lot to criticize in this story, and we think most investors probably will stop there.
"That said, despite Sun's weak revenues, we are already raising earnings on favorable mix shifts –- even before a restructuring which we expect on or before Sept.5, the date of a just-announced Sun analyst meeting," she added.
Under Armour shares jumped 15% after the sports apparel maker reported strong quarterly earnings and increased full-year guidance. The Baltimore, Md.-based company posted a second-quarter profit of 11 cents a share, trouncing Street estimates of 3 cents.
S&P Equity Research lifted the price target on the stock to $75 from $70. "We see continued strong brand momentum as UA launches new products and categories and expands distribution," said analyst Marie Driscoll.
Moving to the downside, shares of Alcatel-Lucent plunged 10% after the telecom equipment maker reported quarterly earnings below expectations.
Peter Kang is a markets writer at CNBC.com and can be reached at firstname.lastname@example.org.