In this article, we will take a look at the 10 notable earnings reports to watch. You can skip our detailed analysis of these companies and go directly to the 5 Notable Earnings Report to Watch.
Stocks from the financial, consumer defensive, and industrials sectors, including Morgan Stanley (NYSE:MS), The Procter & Gamble Company (NYSE:PG) and Union Pacific Corporation (NYSE:UNP), recently announced their quarterly results.
Shares of Morgan Stanley, Procter & Gamble and Union Pacific Corp rose after posting better-than-expected earnings. In addition, shares of several other companies, including Alcoa Corporation (NYSE:AA) and UnitedHealth Group Incorporated (NYSE:UNH), also gained value after posting an upbeat quarterly profit.
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We will discuss their key financial highlights in the remaining article.
Notable Earnings Reports to Watch
10. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders: 30
Shares of United Airlines Holdings, Inc. (NASDAQ:UAL) fell nearly two percent in the after-hours trading session on Wednesday, January 19, 2022, after offering a weak outlook for the first quarter along with the fourth quarter results.
United Airlines Holdings, Inc. (NASDAQ:UAL) said the recent surge in coronavirus cases would further prolong its recovery from the pandemic. The Chicago-based airline expects its revenue to be down in the range of 20 – 25 percent from the comparable period of 2019.
Nevertheless, United Airlines Holdings, Inc. (NASDAQ:UAL) reported better-than-expected financial results for the fourth quarter. It posted an adjusted loss of $1.60 per share, narrower than the consensus forecast for a loss of $2.09 per share. Revenue came in at $8.2 billion, ahead of analysts’ average estimate of $8 billion.
Speaking on the results, CEO of United Airlines Holdings, Inc. (NASDAQ:UAL), Scott Kirby, said in a statement:
“While Omicron is impacting near term demand, we remain optimistic about the spring and excited about the summer and beyond. We look forward to beginning to return the Pratt & Whitney 777s to service this quarter and getting the full airline back to normal utilization — as we ramp up along with demand this year.”
9. Discover Financial Services (NYSE:DFS)
Number of Hedge Fund Holders: 37
Shares of Discover Financial Services (NYSE:DFS) fell more than four percent on Wednesday, January 19, 2022, after its profit and sales for the fourth quarter fell short of expectations. The company reported earnings of $3.64 per share, compared to 2.59 per share in the year-ago quarter.
Revenue came in at $2.94 billion versus $2.82 billion in the same period last year. Analysts were expecting Discover Financial Services (NYSE:DFS) to post earnings of $3.72 per share on revenue of $3 billion.
In addition, Discover Financial Services (NYSE:DFS) announced that it repurchased nearly 6.5 million shares of its common stock during the fourth quarter for $773 million.
Like Discover Financial Services (NYSE:DFS), investors are also closely observing Morgan Stanley (NYSE:MS), The Procter & Gamble Company (NYSE:PG), Union Pacific Corporation (NYSE:UNP), Alcoa Corporation (NYSE:AA) and UnitedHealth Group Incorporated (NYSE:UNH), following their earnings reports.
8. State Street Corporation (NYSE:STT)
Number of Hedge Fund Holders: 42
Shares of State Street Corporation (NYSE:STT) fell more than seven percent on Wednesday, January 19, 2022, after the Massachusetts-based financial services company posted mixed financial results for the fourth quarter.
State Street Corporation (NYSE:STT) earned $2 per share on an adjusted basis, ahead of the consensus forecast of $1.88 per share. Revenue came in at $3.053 billion, while analysts were looking for revenue of $3.010 billion.
Looking at some other key stats, net interest income for the quarter slipped three percent to $484 million, while total expenses rose two percent. The elevated costs were mainly attributed to higher compensation and employee benefits.
Discussing the results, CEO of State Street Corporation (NYSE:STT), Ron O’Hanley, said in a statement:
“We continued to successfully execute against our strategic priorities, while also delivering strong year-over-year financial results and business momentum, including positive operating leverage, meaningful pre-tax margin expansion and robust earnings growth.”
7. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 42
Shares of U.S. Bancorp (NYSE:USB) declined nearly eight percent on Wednesday, January 19, 2022, after its fourth-quarter profit and revenue came in below expectations. The Minnesota-based bank holding company reported earnings of $1.07 per share, up from 95 cents per share in the year-ago quarter.
However, the revenue of $5.68 billion was slightly lower than $5.75 billion in the comparable period of 2020. Analysts were expecting U.S. Bancorp (NYSE:USB) to post earnings of $1.10 per share on revenue of $5.75 billion.
Net interest income also decreased to $3.12 billion from $3.18 billion in the year-ago quarter and missed expectations of $3.14 billion. In addition, average total loans for the quarter inched up 0.1 percent or $447 million, while average total deposits jumped 6.5 percent or $27.4 billion from the comparable period of 2020.
Like U.S. Bancorp (NYSE:USB), Morgan Stanley (NYSE:MS), The Procter & Gamble Company (NYSE:PG), Union Pacific Corporation (NYSE:UNP), Alcoa Corporation (NYSE:AA) and UnitedHealth Group Incorporated (NYSE:UNH), also caught investors’ attention after posting an upbeat quarterly profit.
6. Kinder Morgan, Inc. (NYSE:KMI)
Number of Hedge Fund Holders: 42
Kinder Morgan, Inc. (NYSE:KMI) is one of the biggest energy infrastructure companies in the U.S. Being a midstream giant, it owns and operates the infrastructure required for moving crude oil, natural gas, CO2 and more.
Shares of Kinder Morgan, Inc. (NYSE:KMI) rose nearly two percent in the after-hours trading session on Wednesday, January 19, 2022, after beating profit and sales expectations for the fourth quarter.
Kinder Morgan, Inc. (NYSE:KMI) reported adjusted earnings of 27 cents per share, unchanged from last year and above the consensus forecast of 25 cents per share. Revenue came in at $4.43 billion, up from $3.12 billion in the year-ago quarter and above expectations of $3.61 billion.
Looking forward, Kinder Morgan, Inc. (NYSE:KMI) expects to post a net income of $2.2 billion for 2022. The company also declared a cash dividend of 27 cents per share for the fourth quarter.
Speaking on the results, CEO of Kinder Morgan, Inc. (NYSE:KMI), Steve Kean, said in a statement:
“As we complete our 25th year, future prospects for the company look very bright. Our business model, predominantly take-or-pay and fee-based long-term contracts with creditworthy customers, remains durable. And our interconnected network of transportation and storage infrastructure is now recognized as even more valuable in the marketplace.”
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Disclosure: None. 10 Notable Earnings Reports to Watch is originally published on Insider Monkey.
