5 Key Earnings Reports to Watch

In this article, we discuss the 5 key earnings reports to watch. If you want to read our detailed analysis of these companies, go directly to the 11 Key Earnings Reports to Watch.  

5. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Holders: 56

Carvana Co. (NYSE:CVNA) recently announced a wider-than-expected loss for the fourth quarter. However, its shares climbed over 21 percent on Friday, February 25, 2022, after it struck an agreement with KAR Global (NYSE:KAR) to buy its vehicle auction business ADESA U.S.

The deal, valued at $2.2 billion, would help Carvana Co. (NYSE:CVNA) boost its physical presence in the U.S. In addition, the company said that the ADESA’s reconditioning operations could increase its production by two million units annually.

Follow Carvana Co. (NYSE:CVNA)

For the fourth quarter, Carvana Co. (NYSE:CVNA) posted a loss of $1.02 per share, wider than the consensus forecast for a loss of 79 cents per share. Revenue for the quarter climbed 105 percent on a year-over-year basis to $3.8 billion and topped expectations of $3.5 billion.

Speaking on the results, CEO Ernie Garcia said:

“2021 was a year full of meaningful milestones. We sold our 1 millionth car, achieved our first positive earnings quarter, and became the fastest growing e-commerce company in U.S. history.”

4. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 62

Shares of Dell Technologies Inc. (NYSE:DELL) recently plunged to a five-month low following its disappointing profit for the fourth quarter. The Texas-based tech company reported adjusted earnings of $1.72 per share, down from $1.76 per share in the year-ago period and below the consensus of $1.95 per share.

On the bright side, Dell Technologies Inc. (NYSE:DELL) posted revenue of $28 billion, up 16 percent on a year-over-year basis. Analysts were expecting the company to generate revenue of $27.5 billion.

Follow Dell Inc (NASDAQ:DELL)

Dell Technologies Inc. (NYSE:DELL) also disclosed its segment-wise sales performance. Revenue from its Client Solutions Group jumped 26 percent to $17.3 billion, while revenue from the Infrastructure Solutions Group increased 3 percent to $9.2 billion in the quarter.

Discussing the results, co-chief operating officer Chuck Whitten said:

“In FY22, widespread digital transformation continued to accelerate growth in technology spend, and we are encouraged by growing demand across our entire portfolio. We also made strategic progress across multi-cloud, edge, as-a-Service and telecom. We launched solutions in these spaces, engaged customers, and made investments to position Dell for future growth.”

3. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 82

Shares of Intuit Inc. (NASDAQ:INTU) turned red on Friday, February 25, 2022, after posting its fiscal second-quarter profit and sales below expectations. The California-based software company reported adjusted earnings of $1.55 per share, well above 68 cents per share in the year-ago period.

In addition, Intuit Inc. (NASDAQ:INTU) posted revenue of $2.7 billion, up 70 percent on a year-over-year basis. The results showed substantial improvement from the year-ago quarter but missed expectations of $1.85 per share for earnings and $2.73 billion for revenue.

Follow Intuit Inc. (NASDAQ:INTU)

Looking forward, Intuit Inc. (NASDAQ:INTU) expects adjusted earnings in the range of $11.48 – $11.64 per share for its FY 2022, representing year-over-year growth of 18 – 20 percent.

Speaking on the results, CEO Sasan Goodarzi said:

“We see continued strong momentum across the company as we focus on our mission to power prosperity and solve our customers’ biggest financial problems. Our platform continues to thrive as digitization is more important now than ever.”

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 96

Alibaba Group Holding Limited (NYSE:BABA) recently came into the limelight after announcing the financial results for its fiscal third quarter. The Chinese e-commerce behemoth reported adjusted earnings of $2.65 per ADS, down 23 percent on a year-over-year basis.

Revenue for the quarter rose 10 percent versus last year to $38.07 billion. Analysts expected Alibaba Group Holding Limited (NYSE:BABA) to report earnings of $2.55 per ADS on sales of $38.83 billion.

Follow Alibaba Group Holding Limited (NYSE:BABA)

If we look at the performance of its flagship businesses, revenue from the China commerce segment increased 7 percent to $27.03 billion, while cloud revenue jumped 20 percent to $3.07 billion. In comparison, local consumer services revenue jumped 27 percent to $1.91 and international commerce revenue surged 18 percent to $2.58 billion in the quarter.

Among other updates, Alibaba Group Holding Limited (NYSE:BABA) reported that annual active consumers across its global ecosystem reached 1.28 billion during the 12 months ended December 31.

Commenting on the quarter, CEO Daniel Zhang said:

“Alibaba delivered steady progress this quarter as we continued to execute our multi-engine growth strategy in a complex and volatile market environment. We achieved positive momentum in key strategic businesses through a disciplined focus on capacity building and value creation to fuel our future growth.”

1. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 96

Shares of Block, Inc. (NYSE:SQ) soared over 26 percent on Friday, February 25, 2022, after the financial services and digital payments company delivered impressive profit and sales for the fourth quarter.

Block, Inc. (NYSE:SQ) reported adjusted earnings of 27 cents per share, crushing expectations of 23 cents per share. Revenue for the quarter climbed 29 percent on a year-over-year basis to $4.08 billion and easily surpassed expectations of $4.04 billion. Bitcoin revenue in the quarter jumped 12 percent to $1.96 billion.

Follow Block Inc. (NYSE:SQ)

Block, Inc. (NYSE:SQ) also released its segment-wise sales performance. Its transaction-based revenue in the quarter increased 41 percent to $1.31 billion, while subscription and services-based revenue skyrocketed 72 percent to $772 million.

Among other updates, Block, Inc. (NYSE:SQ) reported that its gross payment volume (GPV) in the quarter surged 45 percent to $46.3 billion. In addition, the company announced that it completed the acquisition of Australia-based buy now pay later (BNPL) platform Afterpay on January 31.

You can also take a peek at 11 Best Quantum Computing Stocks To Invest In and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.