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Author: Don Obrien

10 Stocks that Crushed Earnings Expectations


In this article we will take a look at the 10 stocks that crushed earnings expectations. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks that Crushed Earnings Expectations.

Most of the big-cap U.S. stocks have already released their financial results for the second quarter. Currently, we are in the last phase of the Q2 earnings season. The results have been impressive so far, with sector leaders posting solid profit and sales.

Giants in the retail, travel, and entertainment categories, including Airbnb, Inc. (NASDAQ: ABNB), Walmart Inc. (NYSE: WMT), The Home Depot, Inc. (NYSE: HD), and The Walt Disney Company (NYSE: DIS), recently came into the limelight after announcing solid quarterly earnings.

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With this context in mind, let’s now discuss our list of the 10 stocks that crushed earnings expectations.

10 Stocks That Crushed Earnings Expectations

10. Fabrinet (NYSE: FN)

Number of Hedge Fund Holders: 15

Fabrinet (NYSE: FN) on Monday announced better-than-expected financial results for the fourth quarter ended June 25. The company reported earnings of $1.13 per share, higher than 75 cents per share in the comparable period of 2020.

On an adjusted basis, Fabrinet (NYSE: FN) earned $1.31 per share, ahead of the consensus forecast of $1.22 per share. Revenue came in at $509.6 million, up 26 percent from $405.1 million in the year-ago quarter. Analysts, on average, were expecting Fabrinet (NYSE: FN) to post revenue of $486.9 million.

Discussing the results, CEO Seamus Grady said, “We had a strong finish to a record year with revenue and profitability that exceeded our guidance ranges. Demand trends across our business continue to be healthy, with particular fourth quarter strength from the telecom market. With efficient execution, we delivered excellent operating margins during the fourth quarter, which helped propel operating income and net income to record levels for fiscal year 2021.”

Fabrinet (NYSE: FN) also issued its financial outlook for the first quarter. It expects adjusted earnings in the range of $1.29 per share to $1.36 per share and revenue between $510 million and $530 million for the current quarter.

Airbnb, Inc. (NASDAQ: ABNB), Walmart Inc. (NYSE: WMT), The Home Depot, Inc. (NYSE: HD), and The Walt Disney Company (NYSE: DIS) also caught investors’ interest after releasing solid financial results.

9. Broadridge Financial Solutions, Inc. (NYSE: BR)

Number of Hedge Fund Holders: 22

Broadridge Financial Solutions, Inc. (NYSE: BR) recently announced its fourth-quarter profit and sales above expectations. The results were mainly driven by elevated demand for its digital solutions and increased investor participation. The company reported earnings of $2.20 per share for the three months ended June 30, compared to $1.97 per share in the same period last year.

On an adjusted basis, Broadridge Financial Solutions, Inc. (NYSE: BR) earned $2.19 per share, matching the consensus forecast. Revenue for the quarter jumped 12 percent on a year-over-year basis to $1.53 billion, ahead of analysts’ average estimate of $1.48 billion.

Broadridge Financial Solutions, Inc. (NYSE: BR) also released its financial guidance for FY 2022. The company expects its adjusted earnings to grow in the range of 11-15 percent. Moreover, revenue is expected to grow in the range of 12-15 percent for the full year.

Airbnb, Inc. (NASDAQ: ABNB), Walmart Inc. (NYSE: WMT), The Home Depot, Inc. (NYSE: HD), and The Walt Disney Company (NYSE: DIS) also caught investors’ interest after releasing solid financial results.

8. National Vision Holdings, Inc. (NASDAQ: EYE)

Number of Hedge Fund Holders: 24

Shares of National Vision Holdings, Inc. (NASDAQ: EYE) hit a new 52-week high of $55.75 after beating expectations for the second quarter. The optical retailer reported adjusted earnings of 48 cents per share, compared to a loss of 41 cents per share in the year-ago quarter. Analysts, on average, had projected adjusted earnings of 23 cents per share.

Revenue for the quarter climbed 111 percent on a year-over-year basis to $549.5 million, beating the consensus forecast. Comparable store sales growth in the quarter was 99 percent. Moreover, National Vision Holdings, Inc. (NASDAQ: EYE) said that it opened 20 new stores during the quarter, bringing the total store count to 1,249.

CEO Reade Fahs expressed his satisfaction with the results. Fahs said in a statement, “The National Vision team delivered exceptionally strong results for the second quarter. We believe our continued operating momentum further demonstrates the benefit from the hastening of industry trends that favor our low price model and strong store-level execution to meet heightened demand for affordable eyewear and eye care. I would like to thank the 2,000-plus optometrists and over 13,000 associates at National Vision for their continued resilience and commitment to serve our patients and customers.”

Airbnb, Inc. (NASDAQ: ABNB), Walmart Inc. (NYSE: WMT), The Home Depot, Inc. (NYSE: HD), and The Walt Disney Company (NYSE: DIS) also caught investors’ interest after releasing solid financial results.

National Vision Holdings, Inc. (NASDAQ: EYE) also updated its financial outlook for FY 2021. It now expects adjusted earnings in the range of $1.28-$1.33 per share, up from its previous guidance between $1.07-$1.12 per share. In addition, revenue is expected to come between $2.01-$2.06 billion, compared to its previous forecast of $1.975-$2.025 billion.

7. The AZEK Company Inc. (NYSE: AZEK)

Number of Hedge Fund Holders: 29

The AZEK Company Inc. (NYSE: AZEK) recently delivered another impressive quarter, helped by a solid performance by its residential and commercial segments. The outdoor-living products manufacturer reported earnings of 58 cents per share for the third quarter ended June 30, significantly higher than 14 cents per share in the comparable period of 2020.

On an adjusted basis, The AZEK Company Inc. (NYSE: AZEK) earned 26 cents per share, ahead of the consensus forecast of 23 cents per share. Revenue for the quarter climbed approx. 46 percent to $327.45 million, crushing analysts’ average estimate of $291.53 million.

If we look at the performance of its flagship businesses, revenue from its residential segment jumped 51.2 percent on a year-over-year basis, while revenue from its commercial segment rose 16.5 percent.

The AZEK Company Inc. (NYSE: AZEK) also raised its sales outlook for FY 2021. The company now expects sales growth in the range of 28-30 percent for the full year, compared to its earlier forecast between 23-26 percent.

Airbnb, Inc. (NASDAQ: ABNB), Walmart Inc. (NYSE: WMT), The Home Depot, Inc. (NYSE: HD), and The Walt Disney Company (NYSE: DIS) also caught investors’ interest after releasing solid financial results.

6. Palantir Technologies Inc. (NYSE: PLTR)

Number of Hedge Fund Holders: 32

Palantir Technologies Inc. (NYSE: PLTR) recently announced better-than-expected financial results for the second quarter ended June 30. The Colorado-based software company reported adjusted earnings of 4 cents per share, compared to 1 cent per share in the same period last year.

Revenue for the quarter soared 49 percent on a year-over-year basis to $376 million. Analysts, on average, were expecting Palantir Technologies Inc. (NYSE: PLTR) to report adjusted earnings of 4 cents per share on revenue of $360.3 million.

Palantir Technologies Inc. (NYSE: PLTR) said that its commercial revenue from U.S. operations increased 90 percent on a year-over-year basis. Moreover, it added 20 new customers in the quarter, while its total customers increased 32 percent on a sequential basis. In addition, the company said that average sales from its top 20 clients jumped to $39 million in Q2, up from $36 million in the prior quarter.

In the Q2 2021 investor letter of Guardian Fund, the fund mentioned Palantir Technologies Inc. (NYSE: PLTR). Here is what the fund said:

“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines atrecord speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.

Government institutions have to partner with enterprises such as Palantir to become digitalnative. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters…” (Click here to see the full text)

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Disclosure: None. 10 Stocks that Crushed Earnings Expectations is originally published on Insider Monkey.



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Oliver Bolt

Oliver Bolt

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