In this article, we will take a look at the 10 stocks making headlines after earnings reports. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks Making Headlines After Earnings Reports.
Investors seemed disappointed with the latest earnings reports from tech giants, including Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN). Shares of both companies fell after releasing their financial results. As a result, all major U.S. indexes also turned red.
Several other companies, including Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), and Mastercard Incorporated (NYSE:MA), also came into the limelight after releasing their financial results.
Stocks Making Headlines After Earnings Reports
10. Yum! Brands, Inc. (NYSE:YUM)
Number of Hedge Fund Holders: 35
Yum! Brands, Inc. (NYSE:YUM) recently announced better-than-expected financial results for the third quarter. The fast-food company reported adjusted earnings of $1.22 per share, up from $1.01 per share in the same period last year.
Revenue for the quarter rose 11 percent on a year-over-year basis to $1.606 billion. Analysts were expecting Yum! Brands, Inc. (NYSE:YUM) to earn $1.08 per share on revenue of $1.590 billion.
In addition, Yum! Brands, Inc. (NYSE:YUM) reported same-restaurant sales growth of five percent for the quarter. If we break down that by segments, KFC’s same-store sales increased six percent, Pizza Hut’s same-store sales increased 4 percent, while Taco Bell reported same-store sales growth of five percent.
9. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 44
Shares of Moody’s Corporation (NYSE:MCO) made a new 52-week high of $407.08 on Thursday, 28 October 2021, after beating expectations for its fiscal third quarter. The financial services company earned $2.69 per share on an adjusted basis, unchanged from the same period last year and above expectations of $2.52 per share.
Revenue for the quarter came in at $1.526 billion, up 13 percent versus the year-ago quarter. Analysts were looking for revenue of $1.45 billion. If we look at the performance of key segments, revenue from Moody’s Investors Service (MIS) jumped 12 percent to $925 million. In comparison, Moody’s Analytics (MA) generated revenue of $601 million, up 13 percent versus the year-ago quarter.
Moody’s Corporation (NYSE:MCO) also updated its earnings outlook for the full year. The company increased its adjusted earnings guidance to a range of $12.15 – $12.35 per share from $11.55 – $11.85 per share. The revised outlook is better than the consensus forecast of $11.95 per share.
CEO Rob Fauber expressed his satisfaction with the results, saying:
“In the third quarter, Moody’s delivered impressive double-digit revenue growth and invested significantly in its capabilities and product development in order to better serve a number of high-growth markets.”
Like Moody’s Corporation (NYSE:MCO), Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), Apple Inc. (NASDAQ:AAPL), Mastercard Incorporated (NYSE:MA), and Amazon.com, Inc. (NASDAQ:AMZN) are also making headlines after posting their financial results.
8. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Shares of Altria Group, Inc. (NYSE:MO) fell more than six percent, hitting a nearly seven-month low, after announcing lower-than-expected adjusted earnings for the third quarter. The leading producer of tobacco posted adjusted earnings of $1.22 per share, missing the consensus forecast of $1.26 per share.
On the bright side, the quarterly revenue of $6.79 billion surpassed analysts’ average estimate of $5.73 billion. Altria Group, Inc. (NYSE:MO) had reported adjusted earnings of $1.19 per share on revenue of $7.12 billion for the comparable period of 2020.
Looking forward, Altria Group, Inc. (NYSE:MO) expects adjusted earnings in the range of $4.58 – $4.62 per share for the full year, representing year-over-year growth of 5 – 6 percent. This compares to earnings of $4.62 per share estimated by analysts.
Speaking on the results, CEO Billy Gifford said:
“Our tobacco businesses performed well against difficult year-over-year comparisons and we’re encouraged by the significant retail share growth from on! in the third quarter.”
7. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 48
Shares of Stryker Corporation (NYSE:SYK) slipped over three percent in the pre-market trading session on Friday, 29 October 2021, after missing profit and sales expectations for the third quarter. The Michigan-based medical technology company reported adjusted earnings of $2.20 per share, up 2.8 percent versus the year-ago quarter.
Revenue for the quarter jumped 11.3 percent on a year-over-year basis to $4.16 billion. However, the results missed analysts’ average estimate of $2.28 per share for earnings and $4.24 billion for revenue.
If we break down the total sales by segments, Orthopaedics revenue jumped 16.1 percent to $1.5 billion, MedSurg revenue rose 9.4 percent to $1.8 billion, while Neurotechnology and Spine revenue increased 7.3 percent to $0.9 billion in the quarter.
Stryker Corporation (NYSE:SYK) also trimmed its profit outlook for the full year, citing the negative impacts of the pandemic. The company now expects adjusted earnings in the range of $9.08 to $9.15 per share, compared to its earlier guidance between $9.25 – $9.40 per share.
Commenting on the quarter, CEO Kevin Lobo said:
“Our teams showed strong resilience and delivered solid quarterly financial results despite a resurgence of COVID-19 that intensified through the quarter. This latest spike mostly impacted our U.S. implant related businesses as scheduled procedures were deferred. Despite those impacts, we delivered strong growth in our MedSurg and NeuroTech businesses and are ready to support our customers as the pandemic recedes.”
Like Stryker Corporation (NYSE:SYK), investors are also closely watching Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), Apple Inc. (NASDAQ:AAPL), Mastercard Incorporated (NYSE:MA), and Amazon.com, Inc. (NASDAQ:AMZN) after they released their financial results.
6. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62
Shares of Caterpillar Inc. (NYSE:CAT) rose more than four percent on Thursday, 28 October 2021, after its third quarter adjusted earnings surpassed expectations. The construction and mining equipment maker earned $2.66 per share on an adjusted basis, compared to $1.52 per share in the year-ago quarter.
Revenue came in at $12.4 billion, up 25 percent from $9.9 billion in the comparable period of 2020. Analysts were expecting Caterpillar Inc. (NYSE:CAT) to report earnings of $2.20 per share on revenue of $12.6 billion.
If we see at the performance of key segments, revenue from the construction industries business jumped 30 percent to $5.255 billion, while revenue from the resource industries segment climbed 32 percent to $2.406 billion. In comparison, revenue from the energy & transportation segment increased 22 percent to $916 million in the quarter.
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Disclosure: None. 10 Stocks Making Headlines After Earnings Reports is originally published on Insider Monkey.
