In this article, we will take a look at the 10 stocks that surpassed earnings expectations. You can skip our detailed analysis of these companies, and go directly to the 5 Stocks That Surpassed Earnings Expectations.
Leading U.S. banks announced their quarterly financial results in the first week of the third-quarter earnings season. Some notable names include The Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC).
All of the aforesaid stocks surpassed earnings expectations for the third quarter. The better-than-expected performance from these leading financial institutions lifted all three key indexes. As of 11:27 AM ET on 15 October, the S&P 500 was up 0.63 percent, the Dow Jones was up 0.84 percent, while the Nasdaq Composite was positive 0.49 percent.
Photo by Ishant Mishra on Unsplash
Let’s jump on to our list of 10 stocks that recently surpassed earnings expectations.
10 Stocks That Surpassed Earnings Expectations
10. SMART Global Holdings, Inc. (NASDAQ:SGH)
Number of Hedge Fund Holders: 20
Shares of SMART Global Holdings, Inc. (NASDAQ:SGH) rose for two consecutive trading sessions, hitting a three-month high, after the company delivered strong results for its fiscal fourth quarter on Tuesday, 12 October 2021.
The provider of specialty memory solutions reported adjusted earnings of $2.16 per share for the three months ended 27 August 2021, significantly higher than 82 cents per share in the year-ago quarter.
In addition, SMART Global Holdings, Inc. (NASDAQ:SGH) posted revenue of $467.7 million, representing a year-over-year surge of 57 percent. The results easily surpassed the consensus forecast of $1.60 per share for earnings and $461.3 million for revenue.
Looking forward, SMART Global Holdings, Inc. (NASDAQ:SGH) expects earnings in the range of $1.80 – $2.20 per share and revenue between $440 million – $480 million for its fiscal first quarter.
9. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Holders: 22
Infosys Limited (NYSE:INFY) recently announced better-than-expected financial results for the third quarter. The digital services and consulting firm reported earnings of 17 cents per share, up from 15 cents per share in the comparable period of 2020.
Revenue for the quarter jumped 20.7 percent on a year-over-year basis to $4 billion. Analysts were expecting Infosys Limited (NYSE:INFY) to report earnings of 17 cents per share on revenue of $3.9 billion.
Speaking on the results, CEO Salil Parekh said in a statement:
“As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys Cobalt™, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.”
Like Infosys Limited (NYSE:INFY), analysts are also closely watching The Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC) after their earnings reports.
8. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Holders: 26
Shares of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) rose more than three percent in the pre-market trading Friday, 15 October 2021, after posting its profit and sales for the third quarter above expectations.
The transportation and logistics company reported earnings of $1.88 per share, beating the consensus forecast of $1.78 per share. Revenue for the quarter came in at $3.14 billion, ahead of analysts’ average estimate of $3.02 billion. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) had reported earnings of $1.18 per share on revenue of $2.47 billion in the comparable period of 2020.
Discussing the results, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) said double-digit revenue growth across all key business segments offset the effects of rising wages and high transportation cost during the quarter.
If we compare the year-over-year performance of key segments, truckload revenue climbed 87 percent, integrated capacity solutions revenue jumped 55 percent, while intermodal revenue rose 17 percent in the quarter. In comparison, dedicated contract services revenue increased 20 percent.
7. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 39
Truist Financial Corporation (NYSE:TFC) announced its financial results for the third quarter on Friday, 15 October 2021. The North Carolina-based financial holding company said that its adjusted earnings for the quarter jumped 46 percent on a year-over-year basis to $1.42 per share, beating the consensus forecast of $1.21 per share.
Revenue for the quarter came in at $5.6 billion, up 2.3 percent from the comparable period of 2020. Analysts were expecting Truist Financial Corporation (NYSE:TFC) to post revenue of $5.470 billion.
Looking at the key growth indicators, average loans and leases for the third quarter slipped 0.8 percent to $286.2 billion on a sequential basis. In comparison, average deposits for the quarter rose 1.6 percent to $6.5 billion when compared to the prior quarter.
Commenting on the quarter, CEO William H. Rogers Jr said in a statement:
“Truist produced solid results in the third quarter, driven by strong fee income from our diverse business mix – including wealth, insurance brokerage, investment banking, and positive trends in a number of other businesses given improving economic conditions.”
Like Truist Financial Corporation (NYSE:TFC), The Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC) also caught investors’ attention after posting their financial results.
6. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 44
Shares of Alcoa Corporation (NYSE:AA) rose more than 7 percent in the pre-market trading session on Friday, 15 October 2021, after the company swung to profit in the third quarter. The results were mainly driven by higher prices of aluminum and alumina.
Alcoa Corporation (NYSE:AA) reported adjusted earnings of $2.05 per share, compared to an adjusted loss of 1.17 per share in the same period last year. Revenue came in at $3.11 billion, significantly higher than $2.37 billion in the year-ago quarter. The results topped the consensus forecast of $1.76 per share for earnings and $2.93 billion for revenue.
In addition, Alcoa Corporation (NYSE:AA) surprised investors by announcing a 10 cent per share dividend, marking the first dividend payment since 2016. The company also revealed a share buyback plan of $500 million.
Moving forward, Alcoa Corporation (NYSE:AA) expects a stronger 2021 amid higher demand for aluminum and improving economy. The company projected double digit growth for its Aluminum segment. It expects demand for aluminum to increase about 10 percent this year compared to 2022.
Speaking on the results, CEO Roy Harvey said in a statement:
“The strategic work we’ve been implementing across our Company has helped us effectively capture the benefits from very strong market fundamentals and deliver another excellent quarter with record profitability. Today, Alcoa is stronger and better poised for the future, and we plan to continue our positive momentum and consistently deliver value through the commodity cycle.”
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Disclosure: None. 10 Stocks That Surpassed Earnings Expectations is originally published on Insider Monkey.
