Lululemon is spiking after earnings beat

Lululemon released its third-quarter earnings after Wednesday's closing bell and beat on the top and bottom lines, sending shares higher by 8.11% to $73.15 apiece.

The company reported adjusted earnings of $0.56, topping the Wall Street estimate of $0.52. Revenue of $619 million was up 14% versus a year ago.

After reporting its earnings beat, Lululemon raised its full-year earnings guidance from a range between $2.35 to $2.42 to its new range of $2.45 to $2.48.

Brian Tunick, an analyst at RBC, said that the company seems to be bucking the sideways trend of some of its retail peers.

"LULU's strong 3Q and conservative 4Q outlook serve as a proofpoint that the company's product innovation, stores, and digital experience focuses can push the brand towards $4 billion in sales by 2020 from $2.6 billion today despite a normalizing athletic category," Tunick said in a note to clients.

Tunick rates Lululemon an outperform with a price target of $77, which is 4.9% higher than the company's current price.

Sentiment from the rest of Wall Street is similarly optimistic about the company as 17 of the 33 analysts surveyed by Bloomberg rate the company a buy, with just one rating it a sell.

Lululemon shares are up 9.8% this year.

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