In this article, we will take a look at the 10 stocks in focus after releasing their earnings reports. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks in Focus After Releasing Their Earnings Reports.
The third-quarter earnings season is underway. Stocks from the communication services, industrials, and technology sectors recently released their financial results. Snap Inc. (NYSE:SNAP), AT&T Inc. (NYSE:T), Union Pacific Corporation (NYSE:UNP), and Intel Corporation (NASDAQ:INTC), were among the notable stocks that posted their earnings reports earlier this week.
If we look at their price movements, shares of both Intel Corporation (NASDAQ:INTC) and Snap Inc. (NYSE:SNAP) fell sharply following the results. On the other hand, Union Pacific Corporation (NYSE:UNP) shares hit a new 52-week high of $237.84 after beating expectations.
Source:unsplash
In addition, several other companies, including Southwest Airlines Co. (NYSE:LUV) and Honeywell International Inc. (NASDAQ:HON), also released their quarterly results. To review the detailed performance of these companies, let’s start our list of 10 stocks in focus after releasing their earnings reports.
Stocks in Focus After Releasing Their Earnings Reports
10. Valero Energy Corporation (NYSE:VLO)
Number of Hedge Fund Holders: 38
Shares of Valero Energy Corporation (NYSE:VLO) closed higher on Thursday, 21 October 2021, after posting better-than-expected financial results for the third quarter. The results were mainly driven by a recovery in fuel demand and higher refining margins.
The provider of transportation fuels and petrochemical products reported adjusted earnings of $1.22 per share, compared to an adjusted loss of $1.16 per share in the same period last year. Revenue came in at 29.52 billion, nearly double from $15.81 billion in the comparable period of 2020. Analysts were expecting Valero Energy Corporation (NYSE:VLO) to report earnings of 94 cents per share on revenue of $24.5 billion.
Speaking on the results, CEO Joe Gorder said in a statement:
“We saw significant improvement in refining margins in the third quarter as economic activity and mobility continued to recover in key markets. he continued improvement in earnings of our refining business, coupled with the ongoing expansion of our renewables businesses, should strengthen our competitive advantage and drive long-term shareholder returns.”
9. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 40
Dow Inc. (NYSE:DOW) manufactures plastics, chemicals, and coatings, among other products. It recently announced its profit and sales for the third quarter above expectations. The company earned $2.75 per share on an adjusted basis, significantly higher than 50 cents per share in the year-ago quarter.
In addition, Dow Inc. (NYSE:DOW) posted revenue of $14.8 billion, up 53 percent from the comparable period of 2020. The results exceeded the consensus forecast of $2.55 per share for earnings and $14.25 billion for revenue.
If we break down the revenue by segments, the packaging & specialty plastics segment accounted for about 50 percent of the total revenue. The segment’s revenue climbed 69 percent on a year-over-year basis to $7.7 billion in the quarter.
In comparison, revenue from the industrial intermediates & infrastructure segment climbed 47 percent to $4.5 billion, while revenue from the performance materials & coatings segment jumped 26 percent to $2.5 billion.
8. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 49
Shares of Southwest Airlines Co. (NYSE:LUV) slipped nearly two percent on Thursday, 22 October 2021, despite beating expectations for the third quarter. The Dallas-based airline reported an adjusted loss of 23 cents per share, narrower than the loss of 27 cents per share estimated by analysts.
Revenue came in at $4.68 billion, beating the consensus forecast of $4.58 billion. Southwest Airlines Co. (NYSE:LUV) had reported an adjusted loss of $1.99 per share on revenue of $1.79 billion in the comparable period of 2020.
Looking forward, Southwest Airlines Co. (NYSE:LUV) expects its fourth-quarter revenue to drop between 15 – 20 percent versus the comparable period of 2019. The company blamed the negative effects of Delta variant and flights cancellations for the weak outlook.
Discussing the results, CEO Gary Kelly said in a statement:
“Third quarter 2021 was a challenge for us, operationally. Despite the deceleration of traffic in August and September due to surging COVID-19 cases, the third quarter 2021 demand and revenue performance was quite strong and a dramatic improvement from a year ago.”
7. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 57
Shares of Honeywell International Inc. (NASDAQ:HON) moved slightly down in the pre-market trading session on Friday, 22 October 2021, after announcing mixed financial results for the third quarter.
Honeywell International Inc. (NASDAQ:HON) reported adjusted earnings of $2.02, up 29 percent from $1.56 in the same period last year. Analysts were looking for earnings of $1.99 per share.
In addition, Honeywell International Inc. (NASDAQ:HON) posted revenue of $8.47 billion, translating to a year-over-year surge of 8.7 percent. However, it missed the consensus forecast of $8.66 billion.
Honeywell International Inc. (NASDAQ:HON) also updated its financial outlook for the full year. It expects adjusted earnings in the range of $8.00 – $8.10 per share and revenue between $34.2 billion – $34.6 billion. Earlier, the company had projected adjusted earnings in the range of $7.95 – $8.10 per share on revenue of $34.6 billion – $35.2 billion for the same period.
Commenting on the quarter, CEO Darius Adamczyk said:
“The third quarter was another strong one for Honeywell, with sales growth in all four segments, significant margin expansion, and exceptional execution even as we faced tough challenges in the supply chain environment.”
6. HCA Healthcare, Inc. (NYSE:HCA)
Number of Hedge Fund Holders: 57
HCA Healthcare, Inc. (NYSE:HCA) announced impressive profit and sales for the third quarter on Friday, 22 October 2021. The health-care facilities operator reported earnings of $7 per share, crushing the consensus forecast of $4.06 per share.
Revenue came in at $15.276 billion, ahead of analysts’ average estimate of $14.476 billion. HCA Healthcare, Inc. (NYSE:HCA) had posted earnings of $1.95 per share on revenue of $13.311 billion for the comparable period of 2020.
Speaking on the results, CEO Sam Hazen said:
“During the third quarter we experienced the most intense surge yet of the pandemic, and our colleagues and physicians delivered record levels of patient care to meet the demand caused by the Delta variant.”
Looking forward, HCA Healthcare, Inc. (NYSE:HCA) is expecting earnings in the range of $17.20 – $17.80 per share for the full year, better than the consensus forecast of $17.05. Revenue for the full year is expected to come between $58.7 billion – $59.3 billion, in line with analysts’ average estimate of $57.872 billion.
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Disclosure: None. 10 Stocks in Focus After Releasing Their Earnings Reports is originally published on Insider Monkey.
