In this article, we discuss 5 companies that just smashed earnings estimates. If you want to see some more companies beating expectations, go directly to 10 Companies That Just Smashed Earnings Estimates.
5. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Holders: 72
Shares of CSX Corporation (NASDAQ:CSX) jumped over four percent on Thursday, July 21, 2022, after announcing its financial results for the second quarter above expectations. The provider of rail-based freight transportation services reported earnings of 54 cents per share, compared to 52 cents per share in the year-ago period.
In addition, CSX Corporation (NASDAQ:CSX) posted revenue of $3.82 billion, up 28 percent on a year-over-year basis. The results exceeded the consensus of 47 cents per share for earnings and $3.65 billion for revenue.
Commenting on the quarter, CEO of CSX Corporation (NASDAQ:CSX), James M. Foote, said:
“Though volatile commodity prices and persistent inflation have added uncertainty to the economy, our efforts remain focused on adding the resources needed to deliver improvements in our network performance, lift customer satisfaction and develop new rail service solutions to drive meaningful growth over the long term.”
4. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 74
AT&T Inc. (NYSE:T) recently surpassed profit and sales expectations for the second quarter. However, its shares fell nearly seven percent on Thursday, July 21, 2022, apparently due to a lower-than-expected free cash flow for the quarter.
The Texas-based telecommunications giant reported adjusted earnings of 65 cents per share, beating the consensus of 61 cents per share. The quarterly revenue of $29.64 billion also came in above the expectations of $29.56 billion. In addition, AT&T Inc. (NYSE:T) reported postpaid net additions of just over 1 million, well ahead of the consensus of 0.55 million.
On the downside, AT&T Inc. (NYSE:T) generated a free cash flow of $1.4 billion in the quarter, missing the expectations of $4.7 billion with a big margin. The company also lowered its full-year free cash flow outlook to $14 billion versus its previous guidance of $16 billion.
3. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 80
Shares of Tesla, Inc. (NASDAQ:TSLA) rallied nearly 10 percent on Thursday, July 21, 2022, after delivering another solid quarter. The electric vehicle (EV) giant reported adjusted earnings of $2.27 per share for Q2, well above $1.45 per share in the same period of 2021.
Revenue for the quarter also climbed 42 percent versus last year to $16.9 billion. Analysts were expecting Tesla, Inc. (NASDAQ:TSLA) to report earnings of $1.80 per share on sales of $17.1 billion.
On the downside, Tesla, Inc. (NASDAQ:TSLA) reported an automotive gross margin of 27.9 percent, compared to 28.4 percent in the year-ago period.
Discussing the results, Tesla, Inc. (NASDAQ:TSLA) said in a statement:
“We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history.”
2. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 83
Shares of Danaher Corporation (NYSE:DHR) climbed to a nearly three-month high on Thursday, July 21, 2022, after the Washington-based company surpassed profit and sales expectations for the second quarter.
Danaher Corporation (NYSE:DHR) reported adjusted earnings of $2.76 per share, smashing the expectations of $2.35 per share. The quarterly revenue of $7.8 billion also surpassed analysts’ average estimate of $7.32 billion.
Speaking on the results, CEO of Danaher Corporation (NYSE:DHR), Rainer M. Blair, said:
“We are pleased with our strong start to 2022. Our teams executed well in a challenging environment to deliver high-single digit core revenue growth, double-digit adjusted earnings per share growth and $2.0 billion of operating cash flow. We were particularly encouraged with the high-single digit growth in our base business and believe we gained market share across the portfolio.”
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Holders: 89
Shares of Union Pacific Corporation (NYSE:UNP) slightly moved down on Thursday, July 21, 2022, despite beating financial expectations for the second quarter. The railroad operator earned $2.93 per share, up from $2.72 per share in the year-ago quarter.
In addition, Union Pacific Corporation (NYSE:UNP) posted revenue of $6.3 billion, up 14 percent from the comparable period of 2021. Analysts were expecting Union Pacific Corporation (NYSE:UNP) to earn $2.84 per share on sales of $6.12 billion.
Among other updates, Union Pacific Corporation (NYSE:UNP) announced that it repurchased 3.1 million shares of its common stock for $722 million during the second quarter.
Discussing the results, CEO Lance Fritz said in a statement:
“As anticipated, the Second Quarter was a tough one as we limited carloadings and increased expenses to recover network fluidity. We also experienced record high fuel prices and increasing inflation, adding pressure to our total costs. Offsetting the cost pressures were higher fuel surcharge revenue, solid core pricing, a positive mix, and continued train size initiatives.”
You can also take a peek at The 10 Best Bank Stocks to Buy Amid Rising Inflation and Jim Cramer Recommends These 10 Stocks For Recession.
