In this article we will take a look at the 10 stocks that beat the earnings estimates. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks that Beat Earnings Estimates.
Analysts and investors have been watching this earnings season very closely to evaluate the impact of mass vaccination and economic recovery on different industries. Most U.S stocks have eased investors’ concerns by beating expectations. So far, nearly 90 percent of S&P 500 companies have surpassed the consensus estimates.
Some of the notable stocks that posted upbeat earnings recently include Moderna, Inc. (NASDAQ: MRNA), Monster Beverage Corporation (NASDAQ: MNST), Motorola Solutions, Inc. (NYSE: MSI), Duke Energy Corporation (NYSE: DUK), Zillow Group, Inc. (NASDAQ: Z) and ViacomCBS Inc. (NASDAQ: VIAC).
The record earnings season was mainly driven by strong consumer spending as life returned to normal in most parts of the world. The impressive earnings growth made Goldman Sachs lift its guidance for the S&P 500 Index. Goldman analysts David Kostin now expects the index to hit 4,700 by the end of 2021, up from its previous outlook of 4,300.
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Let’s now start our list of the 10 stocks that that beat the earnings estimates.
10 Stocks that Beat the Earnings Estimates
10. Moderna, Inc. (NASDAQ: MRNA)
Number of Hedge Fund Holders: 39
Moderna, Inc. (NASDAQ: MRNA) stock has climbed nearly 20 percent since reporting record financial results for the second quarter, mainly driven by solid sales of its Covid-19 vaccine. The Massachusetts-based biotechnology company reported earnings of $6.46 per share for the three months ended June 30, compared to a loss of 31 cents per share in the year-ago quarter.
Revenue for the quarter came in at $4.35 billion, significantly higher than just $67 million in the comparable period of 2020. The results were well above analysts’ average estimate of $4.96 per share for earnings and $4.21 billion for revenue.
Speaking on the results, CEO Stéphane Bancel said, “I am proud of the progress our teams at Moderna, Inc. (NASDAQ: MRNA) have made in the past quarter in advancing our development pipeline while addressing a global pandemic and quickly establishing global manufacturing and commercial organizations.”
Moderna, Inc. (NASDAQ: MRNA) said it has inked advance purchase agreements (APA) worth $20 billion for anticipated product sales during the current fiscal year. That’s up from the $19.2 billion figure announced in May.
In addition, the company also updated its Covid-19 dose capacity guidance. It expects dose capacity for its coronavirus vaccine in the range of 800 million to 1 billion doses for 2021 and between 2-3 billion doses for 2022.
Like Monster Beverage Corporation (NASDAQ: MNST), Motorola Solutions, Inc. (NYSE: MSI), Duke Energy Corporation (NYSE: DUK), Zillow Group, Inc. (NASDAQ: Z) and ViacomCBS Inc. (NASDAQ: VIAC), Moderna, Inc. (NASDAQ: MRNA) is on investors’ radar after posting upbeat results.
In the Q2 2021 investor letter of Baillie Gifford, the fund mentioned Moderna, Inc. (NASDAQ: MRNA), and how it became one of its top performers. Here‘s what they said:
“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”
9. Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN)
Number of Hedge Fund Holders: 39
Biotechnology company Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) recently announced better-than-expected financial results for the second quarter, helped by increased use of its Covid-19 treatment across the U.S. Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) reported earnings of $27.97 per share for the quarter ended June 30, representing a surge of nearly 4-folds from the year-ago quarter.
Excluding certain items, its adjusted earnings improved to $25.80, well ahead of the consensus forecast of $17.90 per share. In addition, revenue for the quarter skyrocketed 163 percent on a year-over-year basis to $5.139, crushing the consensus forecast of 3.963 billion.
If we look at the performance of its key drugs, revenue from its coronavirus drug REGEN-COV increased to $2.59 billion, beating the estimate of $1.5 billion. In comparison, revenue from its eye disease medicine Eylea jumped nearly 33 percent to $2.33 billion, while revenue from eczema drug Dupixent climbed 59 percent to $1.50 billion.
Like Monster Beverage Corporation (NASDAQ: MNST), Motorola Solutions, Inc. (NYSE: MSI), Duke Energy Corporation (NYSE: DUK), Zillow Group, Inc. (NASDAQ: Z), ViacomCBS Inc. (NASDAQ: VIAC) and Moderna, Inc. (NASDAQ: MRNA), Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is on investors’ radar after posting upbeat results.
CEO Leonard Schleifer expressed his satisfaction with the results. He said in a statement, “Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) had outstanding performance in the second quarter during which we delivered to the U.S. government the entire order for our COVID-19 antibody cocktail and recognized record global sales from our EYLEA and Dupixent franchises.”
Polen Focus Growth Fund, in its Q1 2021 investor letter, mentioned Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN). Here is what the fund said:
“We eliminated our position in Regeneron Pharmaceuticals also to help fund the Amazon addition. Regeneron’s revenue and earnings continue to grow roughly in line with our expectations. We believe Regeneron has a differentiated R&D model that has allowed it to bring novel biologic therapies to market in several therapeutic areas. That said, we believe Regeneron has intermediate-term risks that make a continued holding more difficult, particularly considering the recent opportunities we have seen for the Portfolio.
The company’s largest drug, Eylea, may face increasing competition as new competitive therapies have been approved, albeit without Eylea’s advantaged safety profile. In addition, the end of Eylea’s patent life coincides with a period when the U.S. government is seeking avenues to lower the reimbursement for certain drugs like Eylea. We believe Regeneron has many opportunities for continued growth in the coming years, and the competitive advantages from its proprietary drug development process remain intact. However, we feel the investment opportunity in Amazon was a better use of capital.”
8. Motorola Solutions, Inc. (NYSE: MSI)
Number of Hedge Fund Holders: 29
Shares of Motorola Solutions, Inc. (NYSE: MSI) hit a new 52-week high of $231.89 after announcing solid profit and sales for the second quarter ended July 3. Motorola Solutions, Inc. (NYSE: MSI) reported earnings of $1.69 per share, more than doubled from the comparable period of 2020. On an adjusted basis, the company earned $2.07 per share, surpassing analysts’ average estimate of $1.92 per share.
Revenue came in at $2 billion, up 22 percent from the year-ago quarter. Motorola Solutions, Inc. (NYSE: MSI) enjoyed growth across its flagship segments. Revenue from its products and systems integration business rose 24 percent, while software and services sales jumped 19 percent.
Commenting on the quarter, CEO Greg Brown said, “Our Q2 results were outstanding, highlighted by strong double-digit growth in both segments. The continued strong demand for our mission-critical technologies is driving our increased expectations for the full year.”
Motorola Solutions, Inc. (NYSE: MSI) raised its financial guidance for FY 2021. It expects adjusted earnings in the range of $8.88-$8.98 per share for the full year, compared to its previous outlook between $8.70-$8.80 per share. Moreover, revenue is expected to grow in the range of 9.5-10 percent, versus its earlier growth forecast of 8-9 percent.
Like Monster Beverage Corporation (NASDAQ: MNST), Duke Energy Corporation (NYSE: DUK), Zillow Group, Inc. (NASDAQ: Z), ViacomCBS Inc. (NASDAQ: VIAC) and Moderna, Inc. (NASDAQ: MRNA), Motorola Solutions, Inc. (NYSE: MSI) is on investors’ radar after posting upbeat results.
Wedgewood Partners, in its Q1 2021 investor letter, mentioned Motorola Solutions, Inc. (NYSE: MSI). Here is what the fund said:
“Motorola Solutions, Inc. (NYSE: MSI) saw a rebound in orders back to record levels in its North American Land Mobile Radio (LMR) business – where it enjoys a virtual monopoly – along with double-digit operating earnings growth in its software and services segment. COVID-19 posed some temporary challenges to Motorola’s selling organization; however, public service demand for more sophisticated and flexible emergency video and communications solutions stayed strong. The Company is capable of generating double-digit top-line growth as new federal spending should help expand state and local communication budgets. Despite a considerably better funding backdrop for Motorola’s largest customers, the stock trades at a multiple not too different compared to when things were not nearly as optimistic. As a result, Motorola continues to be a top holding (number 3) in our portfolio.”
7. Duke Energy Corporation (NYSE: DUK)
Number of Hedge Fund Holders: 34
Electric power and natural gas holding company Duke Energy Corporation (NYSE: DUK) also beat expectations for the second quarter. Duke earned 96 cents per share for the three months ended June 30, compared to a loss of $1.13 per share in the same period last year.
On an adjusted basis, earnings rose from $1.12 per share to $1.15 per share, beating the consensus forecast of $1.10 per share. Revenue came in at $5.76 billion, higher than $5.42 billion in the year-ago quarter.
Speaking on the results, Duke’s CEO, Lynn Good, said, “Our strong second-quarter results demonstrate the continued execution of our clean energy strategy. “We recently passed 10,000 MW of renewable energy on our path to net-zero carbon emissions by 2050. We’re investing in our transmission and distribution assets to strengthen grid resiliency, accommodate more renewables and support state economic development efforts.”
Duke Energy Corporation (NYSE: DUK) also reaffirmed its profit outlook for 2021. It expects adjusted earnings in the range of $5-$5.30 per share for the full year. Offering long-term guidance, the company added that it expects its adjusted earnings to grow between 5-7 percent through 2025.
6. Monster Beverage Corporation (NASDAQ: MNST)
Number of Hedge Fund Holders: 45
Energy drinks maker Monster Beverage Corporation (NASDAQ: MNST) recently announced its financial results for the second quarter above expectations. Monster Beverage Corporation (NASDAQ: MNST) reported earnings of 75 cents per share, up 29 percent from 59 cents per share in the year-ago quarter.
Revenue for the quarter climbed 33.6 percent on a year-over-year basis to $1.46 billion. The results exceeded analysts’ average estimate of 67 cents per share for earnings and $1.38 billion for revenue. The strong performance was mainly driven by the Monster Energy Drinks segment, which posted revenue of $1.37 billion, a surge of 33 percent from the comparable period of 2020.
Monster Beverage Corporation (NASDAQ: MNST) CEO Rodney Sacks expressed his satisfaction with the results. Sacks said in a statement, “We are pleased with our record financial results for the second quarter, despite the impact of the COVID-19 pandemic and particularly of the Delta variant. The energy drink category, and in particular our Monster Energy® brand, continues to demonstrate sustained growth in most of our markets.”
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Disclosure: None. 10 Stocks that Beat Earnings Estimates is originally published on Insider Monkey.
