In this article, we will take a look at the 10 stocks making notable moves on earnings reports. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks Making Notable Moves on Earnings Reports.
The fourth week of the third-quarter earnings season is underway. Stocks from different sectors, especially communication services and healthcare, are making big moves on quarterly results. T-Mobile US, Inc. (NASDAQ:TMUS), Activision Blizzard, Inc. (NASDAQ:ATVI), and Pfizer Inc. (NYSE:PFE) were among the notable stocks that traded on unusual volume after reporting their financial results.
Several other companies, including Match Group, Inc. (NASDAQ:MTCH), Global Payments Inc. (NYSE:GPN), and DuPont de Nemours, Inc. (NYSE:DD), also came into the limelight after releasing their earnings reports.
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We will thoroughly discuss the performance of these companies in the remaining article. Therefore, let’s jump on to our list of 10 stocks making notable moves on earnings reports.
Stocks Making Notable Moves on Earnings Reports
10. Gartner, Inc. (NYSE:IT)
Number of Hedge Fund Holders: 39
Shares of Gartner, Inc. (NYSE:IT) hit an all-time high of $368.99 on Tuesday, 2 November 2021, after announcing solid results for the third quarter. The technology research and consulting company reported adjusted earnings of $2.03 per share, significantly higher than 91 cents per share in the comparable period of 2020.
Revenue for the quarter jumped 16.3 percent on a year-over-year basis to $1.2 billion. Analysts were expecting Gartner, Inc. (NYSE:IT) to post earnings of $1.56 per share on revenue of $1.13 billion.
If we compare the performance of key segments, research revenue in the quarter jumped 16.2 percent to $1.04 billion, while conferences revenue skyrocketed 92.1 percent to $24.4 million. In comparison, consulting revenue increased 6.2 percent versus last year to $94.7 million.
Gartner, Inc. (NYSE:IT) also raised its financial outlook for 2021. It now expects adjusted earnings of $8.54 per share on revenue of $4.66 billion for the full year. The revised outlook is better than analysts’ average estimate of $7.80 per share for earnings and $4.63 billion for revenue.
Speaking on the results, CEO Gene Hall said:
“Our strong growth in contract value, revenue, EBITDA, and free cash flow continued in the third quarter. We repurchased more than $1.4 billion of stock year-to-date and remain committed to returning excess capital to shareholders. We are again raising our guidance to reflect the momentum we have seen through the first three quarters of the year.”
9. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders: 45
Shares of Cummins Inc. (NYSE:CMI) slightly moved down on Tuesday, 2 November 2021, after announcing lower-than-expected earnings for the third quarter and slashing its sales guidance for the full year. The company earned $3.69 per share in the quarter, missing analysts’ average estimate of $3.91 per share.
On the bright side, revenue of $5.97 billion surpassed the consensus forecast of $5.87 billion. Cummins Inc. (NYSE:CMI) had posted earnings of $3.36 per share on revenue of $5.12 billion for the comparable period of 2020.
If we see the performance of key segments, revenue from the engine segment climbed 22 percent to $2.6 billion, distribution revenue increased 14 percent to $2 billion, while components revenue jumped 16 percent to $1.8 billion in the quarter. In comparison, revenue from the power systems segment climbed 19 percent to $1.2 billion.
Looking forward, Cummins Inc. (NYSE:CMI) expects revenue growth of approx. 20 percent for the full year versus its previous growth outlook between 20 – 24 percent.
Discussing the revised outlook, CEO Tom Linebarger said in a statement:
“Despite this strong demand, supply chain constraints continue to impact our business as well as our customers’, resulting in rising material costs, elevated logistics expenses, and other manufacturing inefficiencies and capping revenue below our expectations three months ago.”
Like Cummins Inc. (NYSE:CMI), T-Mobile US, Inc. (NASDAQ:TMUS), Activision Blizzard, Inc. (NASDAQ:ATVI), Pfizer Inc. (NYSE:PFE), Match Group, Inc. (NASDAQ:MTCH), and Global Payments Inc. (NYSE:GPN) also came under the spotlight after posting their financial results.
8. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 50
ConocoPhillips (NYSE:COP) recently announced better-than-expected earnings for the third quarter. The Texas-based crude oil producer reported adjusted earnings of $1.77 per share versus an adjusted loss of 31 cents per share in the year-ago quarter.
In addition, ConocoPhillips (NYSE:COP) posted revenue of $11.62 billion, up from $4.38 billion in the comparable period of 2020. The results exceeded the consensus forecast of $1.45 per share for earnings and $10.81 billion for revenue.
Total production in the third quarter, excluding Libya, reached 1.507 million barrels of oil equivalent per day. For the fourth quarter, ConocoPhillips (NYSE:COP) expects production, excluding Libya, in between 1.53 – 1.57 million barrels of oil equivalent per day.
7. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 50
Shares of The Estée Lauder Companies Inc. (NYSE:EL) rose more than four percent on Tuesday, 2 November 2021, after reporting impressive profit and sales for its fiscal first quarter. The retailer of personal care and cosmetics products earned $1.89 per share on an adjusted basis, beating the consensus forecast of $1.70 per share. The numbers were also better than the adjusted earnings of $1.44 per share it posted in the year-ago quarter.
Revenue for the quarter jumped 23 percent on a year-over-year basis to $4.39 billion, ahead of analysts’ average estimate of $4.25 billion. Looking at the performance of key segments, skincare revenue rose 20 percent to $2.45 billion, make-up revenue increased 20 percent to $1.17 billion, while fragrance revenue climbed 50 percent to $609 million in the quarter. In comparison, health care revenue advanced nine percent to $148 million.
The Estée Lauder Companies Inc. (NYSE:EL) also issued the financial outlook for its fiscal second quarter. It expects adjusted earnings in the range of $2.51 – $2.61 per share and revenue growth between 11 – 13 percent. However, the outlook came in below the consensus forecast of $2.81 per share for earnings and revenue growth of 15 percent.
Like The Estée Lauder Companies Inc. (NYSE:EL), investors are also closely watching T-Mobile US, Inc. (NASDAQ:TMUS), Activision Blizzard, Inc. (NASDAQ:ATVI), Pfizer Inc. (NYSE:PFE), Match Group, Inc. (NASDAQ:MTCH), and Global Payments Inc. (NYSE:GPN) after their earnings reports.
6. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 57
Shares of DuPont de Nemours, Inc. (NYSE:DD) jumped nearly nine percent, hitting a nearly three-month high, on Tuesday, 2 November 2021, after announcing strong profit and sales for the third quarter.
The Delaware-based chemical company reported adjusted earnings of $1.15 per share, up 89 percent versus the year-ago quarter. In addition, revenue for the quarter rose 17.7 percent on a year-over-year basis to $4.27 billion. Analysts were expecting DuPont de Nemours, Inc. (NYSE:DD) to post earnings of $1.12 per share on revenue of $4.16 billion.
The company also updated its financial outlook for 2021. DuPont de Nemours, Inc. (NYSE:DD) expects adjusted earnings in the range of $4.18 – $4.22 per share and revenue between $4.14 billion – $4.17 billion for the full year.
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Disclosure: None. 10 Stocks Making Notable Moves on Earnings Reports is originally published on Insider Monkey.
