In this article, we discuss 5 companies that recently raised their guidance. If you want to read about some more companies that recently raised their guidance, go directly to 10 Companies that Recently Raised Guidance.
5. Pool Corporation (NASDAQ:POOL)
Number of Hedge Fund Holders: 42
Pool Corporation (NASDAQ:POOL) markets swimming pool supplies, equipment, and related leisure products. The firm posted earnings for the second quarter of 2022 on July 21, reporting earnings per share of $7.63, beating market estimates by $0.11. The revenue over the period was $2.1 billion, up over 17% compared to the revenue over the same period last year but missing estimates by $30 million. The firm increased guidance numbers for earnings, saying it expected annual earnings guidance of up to $19.13 per share against consensus of $18.85.
On June 23, Loop Capital analyst Garik Shmois maintained a Hold rating on Pool Corporation (NASDAQ:POOL) stock and lowered the price target to $370 from $465, noting there was a strong demand and pricing environment for the firm but pressure from inflation.
At the end of the first quarter of 2022, 42 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Pool Corporation (NASDAQ:POOL), compared to 38 in the preceding quarter worth $1.3 billion.
In its Q1 2022 investor letter, Carillon Tower Advisers highlighted a few stocks and Pool Corporation (NASDAQ:POOL) was one of them. Here is what the fund said:
“Pool Corporation (NASDAQ:POOL) is the world’s largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. After an impressive run, the shares cooled off a bit as investors took some profits on stocks that were perceived to have benefitted from the pandemic. Despite this, the firm continues to see strong demand and remains well positioned to capitalize on a number of firmly established secular trends. Migration trends toward the Sunbelt as well as the desire consumers have shown to invest in their outdoor living and entertainment spaces have resulted in healthy fundamentals for the pool industry going forward.”
4. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 43
Tractor Supply Company (NASDAQ:TSCO) is a rural lifestyle retailer. On July 21, the firm released earnings for the second quarter of 2022. It posted earnings per share of $3.53, beating estimates by $0.01. The revenue over the period was $3.9 billion, up over 8% compared to the revenue over the same period last year and beating estimates by $10 million. The firm also raised guidance numbers for the 2022 fiscal year, saying it expected net sales of upto $14.05 billion against consensus estimates of $13.79 billion.
On July 6, Truist analyst Scot Ciccarelli maintained a Buy rating on Tractor Supply Company (NASDAQ:TSCO) stock and lowered the price target to $246 from $266, noting that multiple, long-duration top line drivers continue for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Select Equity Group is a leading shareholder in Tractor Supply Company (NASDAQ:TSCO), with 2 million shares worth more than $512 million.
In its Q4 2021 investor letter, Wedgewood Partners highlighted a few stocks and Tractor Supply Company (NASDAQ:TSCO) was one of them. Here is what the fund said:
“Tractor Supply Company (NASDAQ:TSCO) contributed favorably to performance during the quarter. Demand from the Company’s niche, affluent rural customer base continues to surge in a post-COVID world with comparable store sales running over +40% higher compared to pre-pandemic (2019) levels. Tractor Supply is seeing growth across all channels, from its website to e-commerce that is fulfilled by its 2000-store fleet to regular in-store traffic. The Company is also managing inflation and supply chain disruptions extremely well, passing through nearly +7% of inflation on consumable goods and managing a quarterly inventory in-stock rate that was actually higher than pre-pandemic. Tractor Supply is an exceptional retailer, and we continue to hold it as a top position.”
3. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 61
Biogen Inc. (NASDAQ:BIIB) develops therapies for the treatment of neurological and neurodegenerative diseases. In earnings results for the second quarter of 2022, posted on July 20, the company reported earnings per share of $5.25, beating estimates by $1.16. The revenue over the period was $2.5 billion, down close to 7% compared to the revenue over the same period last year but beating estimates by $110 million. The firm raised fiscal year 2022 revenue outlook to $10.1 billion against consensus estimates of $9.84 billion.
On July 21, Truist analyst Robyn Karnauskas maintained a Buy rating on Biogen Inc. (NASDAQ:BIIB) stock and lowered the price target to $270 from $320, appreciating the prospects of the drug pipeline of the firm despite depression in base business volumes.
At the end of the first quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Biogen Inc. (NASDAQ:BIIB), compared to 63 in the preceding quarter worth $2.3 billion.
In its Q4 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and Biogen Inc. (NASDAQ:BIIB) was one of them. Here is what the fund said:
“Biogen Inc. (NASDAQ:BIIB) (83%, 2.43%; 5%, 0.10%), a biotechnology company specializing in therapies for the treatment of neurological diseases, was a strong contributor before we exited the position in the first half. We began acquiring shares in January 2021, paying between 9- 11x FCF and a discount to our appraisal, even if the company’s promising drug pipeline turned out to be worth 0. After Biogen’s Alzheimer’s drug Aduhelm was approved in June, we quickly sold out after the stock’s price appreciated over 70% and briefly exceeded our appraisal of the value. We re-initiated a position in Biogen Inc. (NASDAQ:BIIB) in December at a price below our original cost basis from January. The stock became very cheap once again after Aduhelm’s early sales disappointed due to its high initial cost before management correctly cut the price. We think Biogen’s core Multiple sclerosis (MS) and Biosimilars businesses are strong enough to create sustainable double-digit EPS growth, even if Aduhelm and the entire Alzheimer’s program is worth zero. We also expect a board led by large shareholders to continue the company’s accretive repurchase, while considering other beneficial corporate actions.”
2. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) is an Illinois-based healthcare company. On July 20, the firm released earnings for the second quarter of 2022. It posted earnings per share of $1.43, beating analyst estimates by $0.29. The revenue over the period was $11.3 billion, up over 10% year-on-year and beating market estimates by $930 million. The company also raised full year earnings per share guidance to $3.50 per share. The guidance for COVID-related testing sales was $6.1 billion, over $5.6 billion of which have already been achieved.
On July 21, RBC Capital analyst Shagun Singh maintained an Outperform rating on Abbott Laboratories (NYSE:ABT) stock and lowered the price target to $132 from $143, appreciating the solid second quarter results of the firm.
Among the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Abbott Laboratories (NYSE:ABT), with 6 million shares worth more than $721 million.
In its Q1 2022 investor letter, Diamond Hill Capital highlighted a few stocks and Abbott Laboratories (NYSE:ABT) was one of them. Here is what the fund said:
“Abbott Laboratories (NYSE:ABT) announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott Laboratories (NYSE:ABT) continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 81
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. The company posted earnings for the second quarter of 2022 on July 14, reporting earnings per share of $1.55, beating estimates by $0.05. The revenue over the period was $18 billion, up 36% compared to the revenue over the same period last year and beating estimates by $580 million. The firm guided third quarter revenue to up to $20.6 billion against consensus estimates of $18.4 billion.
On June 21, Loop Capital analyst Charles ParkTaiwan initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock with a Buy rating and a price target of NT$600, noting that the firm was an industry leader in foundry.
At the end of the first quarter of 2022, 81 hedge funds in the database of Insider Monkey held stakes worth $10.1 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 72 in the preceding quarter worth $10.9 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”
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