In this article, we will take a look at the 10 tech stocks gaining value after earnings. If you want to see some other tech companies trading higher following their quarterly results, go directly to 5 Tech Stocks Gaining Value After Earnings.
Earnings reports from the tech sector continued this week, with most stocks beating expectations for their respective quarters. Uber Technologies, Inc. (NYSE:UBER), Microchip Technology Incorporated (NASDAQ:MCHP) and ON Semiconductor Corporation (NASDAQ:ON) were among the notable tech companies that rose after releasing their financial results.
In addition, ZoomInfo Technologies Inc. (NASDAQ:ZI) and Dynatrace, Inc. (NYSE:DT) also gained value following their upbeat quarterly performances. We will discuss the financial highlights and subsequent share-price movement of these companies in the remaining article.
10. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders: 25
Shares of Freshworks Inc. (NASDAQ:FRSH) rose to a nearly one-month high on Wednesday, August 3, 2022, after reporting solid sales for the second quarter. The provider of customer service software generated sales of $121.4 million in the quarter, representing a surge of 37 percent on a year-over-year basis.
In addition, Freshworks Inc. (NASDAQ:FRSH) reported an adjusted loss of 6 cents per share, narrower than 8 cents per share in the same period of 2021. Analysts were looking for a loss of 6 cents per share on revenue of $118.24 million.
Freshworks Inc. (NASDAQ:FRSH) also issued its financial outlook for the third quarter. It expects an adjusted loss in the range of 7 – 5 cents per share and revenue between $124.5 – $126.5 million for the current quarter.
9. Alteryx, Inc. (NYSE:AYX)
Number of Hedge Fund Holders: 31
Alteryx, Inc. (NYSE:AYX) recently announced better-than-expected financial results for the second quarter along with an upbeat sales outlook. Alteryx stock skyrocketed over 19 percent on Wednesday, August 3, 2022, following the latest performance.
The Irvine-based tech firm reported an adjusted loss of 46 cents per share, narrower than analysts’ average estimate for a loss of 60 cents per share. Revenue for the quarter jumped 50 percent versus last year to $180.6 million, while analysts expected Alteryx, Inc. (NYSE:AYX) to post revenue of $161.02 million.
For the third quarter, Alteryx, Inc. (NYSE:AYX) guided for revenue of $191 – $194 million, representing year-over-year growth of 55 – 57 percent. For the full year, the company projected revenue of $770 – $780 million, representing a surge of 44 – 45 percent over 2021.
Like Alteryx, Inc. (NYSE:AYX), Uber Technologies, Inc. (NYSE:UBER), Microchip Technology Incorporated (NASDAQ:MCHP) and ON Semiconductor Corporation (NASDAQ:ON) also rose after posting their earnings.
8. Gartner, Inc. (NYSE:IT)
Number of Hedge Fund Holders: 35
Shares of Gartner, Inc. (NYSE:IT) climbed to a nearly three-month high on Tuesday, August 2, 2022, after the technological research and consulting firm easily surpassed financial expectations for the second quarter.
Gartner, Inc. (NYSE:IT) reported adjusted earnings of $2.85 per share, up from $2.24 per share in the year-ago period. Revenue increased to $1.377 billion, from $1.167 billion in the comparable period of 2022. The results exceeded the consensus of $2.13 per share for earnings and $1.32 billion for revenue.
Gartner, Inc. (NYSE:IT) also disclosed its segment-wise sales results. Its research revenue rose 13.9 percent to $1.14 billion, conferences revenue skyrocketed 95.1 percent to $114 million and consulting revenue jumped nearly 14 percent to $121 million in the quarter.
Separately, investment management firm Weitz Investment Management mentioned Gartner, Inc. (NYSE:IT) in its first-quarter 2022 investor letter, stating:
“We added a new position in Gartner (NYSE:IT) as tech-adjacent stocks continued their fall from grace during the quarter. Gartner is the leading provider of subscription-based research services to IT and business professionals (think C-suite executives, among others). The company has an attractive “create once, sell many times” business model that should sound familiar to long-time Fund investors. While Gartner does not scream “cheap” on current earnings, we are drawn to the company’s durability, business momentum, and extended glide path of capital-light, double-digit revenue, and cash flow growth potential.”
7. Alight, Inc. (NYSE:ALIT)
Number of Hedge Fund Holders: 38
Shares of Alight, Inc. (NYSE:ALIT) jumped over 10 percent on Wednesday, August 3, 2022, following its second-quarter results. The Illinois-based company reported adjusted earnings of 12 cents per share, in line with the expectations.
In addition, Alight, Inc. (NYSE:ALIT) posted revenue of $715 million, up 6.4 percent on a year-over-year basis and above expectations of $710.29 million. The Employer Solutions segment was the biggest sales driver, generating revenue of $614 million. In comparison, Professional Services revenue came in at $91 million, while Hosted Business revenue stood at $10 million in the quarter.
Alight, Inc. (NYSE:ALIT) also issued its financial outlook for 2022. It expects adjusted earnings in the range of 54 – 60 cents per share and revenue between $3.09 – $3.12 billion for the full year.
Like Alight, Inc. (NYSE:ALIT), shares of Uber Technologies, Inc. (NYSE:UBER), Microchip Technology Incorporated (NASDAQ:MCHP) and ON Semiconductor Corporation (NASDAQ:ON) also rose after their recent earnings.
6. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 38
Shares of Sabre Corporation (NASDAQ:SABR) rose for two straight days, gaining more than 16 percent, after delivering solid Q2 results on Tuesday, August 2, 2022. The travel technology company primarily benefitted from a surge in air bookings during the quarter.
Sabre Corporation (NASDAQ:SABR) reported an adjusted loss of 25 cents per share, narrower than analysts’ average estimate for a loss of 31 cents per share. Revenue for the quarter climbed 57 percent versus last year to $657.5 million, topping estimates of $649.7 million.
If we look at the performance of its flagship segments, travel solutions revenue jumped 60 percent to $599 million, distribution revenue skyrocketed 98 percent to $432 million and IT solutions revenue increased 8 percent to $168 million in the quarter.
Sabre Corporation (NASDAQ:SABR) also raised its fiscal 2022 sales outlook to a range of $2.3 – $2.6 billion, from its previous guidance between $2.2 – $2.5 billion.
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Disclosure: None. 10 Tech Stocks Gaining Value After Earnings is originally published on Insider Monkey.
