In this article, we will take a look at the 10 stocks in focus after posting their financial results. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks in Focus After Posting Their Financial Results.
Notable tech companies, including Dell Technologies Inc. (NYSE:DELL), Autodesk, Inc. (NASDAQ:ADSK), and HP Inc. (NYSE:HPQ), released their earnings reports earlier this week. Shares of both Dell and HP closed higher after their upbeat profit and sales. However, Autodesk stock hit a one-year low after stating that problems like supply-chain hurdles and labor shortages are hurting its recovery pace.
In addition, several other companies, such as discount stores operator Dollar Tree, Inc. (NASDAQ:DLTR) and agricultural equipment maker Deere & Company (NYSE:DE), also gained investors’ attention following their quarterly results.
We will review the detailed financial performance of these companies in the remaining article. So, without wasting any time, let’s start our list of 10 stocks in focus after posting their financial results.
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Stocks in Focus After Posting Their Financial Result
10. Guess?, Inc. (NYSE:GES)
Number of Hedge Fund Holders: 21
Shares of Guess?, Inc. (NYSE:GES) jumped more than 11 percent on Wednesday, 24 November 2021, after announcing better-than-expected profit and sales for its fiscal third quarter.
The retailer of apparel and related accessories reported adjusted earnings of 62 cents per share, up from 58 cents per share in the year-ago quarter. In addition, revenue for the quarter rose 13 percent versus last year to $643.1 million. Analysts were expecting Guess?, Inc. (NYSE:GES) to report earnings of 46 cents per share on revenue of $611.3 million.
Speaking on the results, CEO Carlos Alberini said in a statement:
“The better performance than expected was driven by our European Wholesale, Americas Retail and Licensing businesses, which posted strong top and bottom line results across the board. All in all, we delivered a 10% operating margin in the period, driven by strong gross margin expansion, as a result of lower promotional activity and improved IMUs in spite of increased freight costs related to the supply chain disruptions experienced in the market.”
Like Guess?, Inc. (NYSE:GES), investors are also closely watching Dell Technologies Inc. (NYSE:DELL), Autodesk, Inc. (NASDAQ:ADSK), HP Inc. (NYSE:HPQ), Dollar Tree, Inc. (NASDAQ:DLTR), and Deere & Company (NYSE:DE), following their quarterly results.
9. Nordstrom, Inc. (NYSE:JWN)
Number of Hedge Fund Holders: 25
Shares of Nordstrom, Inc. (NYSE:JWN) plummeted nearly 30 percent, hitting a one-year low on Wednesday, 24 November 2021. The drop came after the luxury department store chain failed to meet profit expectations for the third quarter.
Nordstrom, Inc. (NYSE:JWN) earned 39 cents per share in the quarter, missing expectations of 56 cents per share with a big margin. On the bright side, the quarterly revenue of $3.6 billion surpassed analysts’ average estimate of $3.55 billion. The company had posted earnings of 34 cents per share on revenue of $3.09 billion for the comparable period of 2020.
If we look at the performance of its flagship units, revenue at Nordstrom’s namesake segment jumped 11 percent on a year-over-year basis, while revenue at Nordstrom Rack segment climbed 35 percent in the quarter. In addition, digital sales in the quarter fell 12 percent versus the comparable period of 2020.
Nordstrom, Inc. (NYSE:JWN) also reaffirmed its sales outlook for the full year. The company continues to expect revenue growth of 35 percent versus last year.
8. The Gap, Inc. (NYSE:GPS)
Number of Hedge Fund Holders: 28
Shares of The Gap, Inc. (NYSE:GPS) recently fell to their lowest level in more than a year following its weak quarterly profit and disappointing full-year outlook. The California-based clothing retailer blamed the pandemic-driven factory closures and production delays for the disappointing results.
The Gap, Inc. (NYSE:GPS) reported adjusted earnings of 27 cents per share for the third quarter, well below the consensus forecast of 50 cents per share. The quarterly revenue of $3.94 billion also missed analysts’ average estimate of $4.43 billion.
The company also slashed its profit outlook for the full year. The Gap, Inc. (NYSE:GPS) now expects adjusted earnings in the range of $1.25 – $1.40 per share, compared to its previous guidance of $2.10 – $2.25 per share. The revised outlook is also below the consensus forecast of $2.20 per share.
Discussing the results, CEO Sonia Syngal said in a statement:
“While we entered the third quarter with growing momentum, acute supply chain headwinds affected our ability to fully meet strong customer demand.”
7. Pure Storage, Inc. (NYSE:PSTG)
Number of Hedge Fund Holders: 28
Shares of Pure Storage, Inc. (NYSE:PSTG) hit an all-time high of $31.88 on Wednesday, 24 November 2021, after delivering solid profit and sales for the third quarter. The California-based technology company attributed the latest performance to solid customer demand and execution across all key business divisions.
Pure Storage, Inc. (NYSE:PSTG) reported earnings of 22 cents per share, significantly higher than 1 cent per share in the comparable period of 2020. Analysts were looking for earnings of 12 cents per share.
In addition, Pure Storage, Inc. (NYSE:PSTG) posted revenue of $563 million, up 37 percent versus the year-ago quarter and ahead of the consensus forecast of $531 million. Looking at the key growth indicators, subscription services revenue in the quarter climbed 38 percent to $187.8 million. In comparison, subscription annual recurring revenue jumped 30 percent versus last year to $788.3 million.
The company also released its sales outlook for the fourth quarter and full year. Pure Storage, Inc. (NYSE:PSTG) expects revenue of around $630 million for the December quarter. For its FY 2022, it expects revenue of around $2.1 billion.
Like Pure Storage, Inc. (NYSE:PSTG), Dell Technologies Inc. (NYSE:DELL), Autodesk, Inc. (NASDAQ:ADSK), HP Inc. (NYSE:HPQ), Dollar Tree, Inc. (NASDAQ:DLTR), and Deere & Company (NYSE:DE) also came into the limelight after posting their financial results.
6. VMware, Inc. (NYSE:VMW)
Number of Hedge Fund Holders: 31
Shares of VMware, Inc. (NYSE:VMW) closed higher on Wednesday, 24 November 2021, following its better-than-expected financial results for the third quarter. The cloud computing and virtualization technology company reported adjusted earnings of $1.72 per share, above the consensus forecast of $1.54 per share.
VMware, Inc. (NYSE:VMW) had posted adjusted earnings of $1.66 per share in the comparable period of 2020. Revenue for the quarter rose 11 percent versus last year to $3.19 billion, ahead of the consensus forecast of $3.12 billion.
Commenting on the results, CFO Zane Rowe said:
“We continued healthy revenue growth and profitability in Q3, with Subscription and SaaS ARR increasing 25% year-over-year to $3.3 billion. Our performance in Q3 reflects strong year-over-year growth in major product categories as we deliver compelling value to our customers.”
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Disclosure: None. 10 Stocks in Focus After Posting Their Financial Results is originally published on Insider Monkey.
