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 10 Key Earnings Reports to Watch.

5. Paychex, Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders: 29

Shares of Paychex, Inc. (NASDAQ:PAYX) rose more than four percent on Thursday, 30 September 2021, after delivering impressive results for its fiscal first quarter. The human-capital services company reported adjusted earnings of 89 cents per share, beating the consensus forecast of 80 cents per share.

Paychex, Inc. (NASDAQ:PAYX) had reported adjusted earnings of 63 cents per share in the comparable period of 2020. Revenue for the quarter jumped 16 percent on a year-over-year basis to $1.08 billion, ahead of the consensus estimate of $1.04 billion.

If we compare the performance of its key segments, management solutions revenue rose 17 percent to $805.5 million in the quarter, while PEO and insurance solutions revenue increased 14 percent to $262.9 million.

Paychex, Inc. (NASDAQ:PAYX) also updated the profit outlook for its fiscal year 2022. The company now expects its adjusted earnings to grow in the range of 12 – 14 percent, up from its previous growth forecast of 10 – 12 percent.

Speaking on the results, CEO Martin Mucci said:

“Fiscal 2022 is off to a strong start as we achieved double-digit growth in both revenue and earnings. These results reflected improvement in the economy, continued momentum in sales, and strong levels of client retention. Our sales performance was driven by ongoing strength in both digital and HR Outsourcing sales and solid growth in the mid-market space.”

4. McCormick & Company, Incorporated (NYSE:MKC)

Number of Hedge Fund Holders: 34

McCormick & Company, Incorporated (NYSE:MKC) recently reported better-than-expected financial results for its fiscal third quarter. However, it slashed earnings guidance for its full fiscal year, sending its shares down more than three percent on Thursday, 30 September 2021.

The maker of spices and sauces reported adjusted earnings of 80 cents per share for the three months ended 31 August 2021, up from 76 cents per share in the comparable period of 2020. Analysts were expecting McCormick & Company, Incorporated (NYSE:MKC) to report earnings of 72 cents per share.

Revenue rose 8 percent on a year-over-year basis to $1.549 billion, exceeding the consensus forecast of $1.538 billion. McCormick & Company, Incorporated (NYSE:MKC) said the home dining trend in the quarter resulted in higher demand for its products.

However, McCormick & Company, Incorporated (NYSE:MKC) slashed the profit outlook for its fiscal year 2021. It expects to report adjusted earnings in the range of $2.97 – $3.02 per share, compared to its previous guidance between $3 – $3.05 per share.

3. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 39

Shares of CarMax, Inc. (NYSE:KMX) fell more than 12 percent on Thursday, 30 September 2021, after the company reported lower-than-expected earnings for its fiscal second quarter. The retailer of used vehicles reported earnings of $1.72 per share for the three months ended 31 August 2021, missing the consensus forecast of $1.89 per share.

CarMax, Inc. (NYSE:KMX) had reported earnings of $1.79 per share in the comparable period of 2020. On the bright side, revenue for the quarter climbed 48.7 percent on a year-over-year basis to $8 billion, ahead of analysts’ average estimate of $6.85 billion.

In addition, CarMax, Inc. (NYSE:KMX) sold 419,895 units through both its retail and wholesale channels, up nearly 20 percent from the year-ago quarter. In comparison, vehicle purchases in the quarter jumped 59 percent to 364,263 units.

Commenting on the results, CEO Bill Nash said:

“Our omni-channel platform, in combination with our unique customer offerings, industry expertise and solid execution, drove performance across our diversified business and led to a record level of used sales for the second quarter and an all-time record for wholesale vehicle sales.”

2. IHS Markit Ltd. (NYSE:INFO)

Number of Hedge Fund Holders: 61

Shares of IHS Markit Ltd. (NYSE:INFO) fell more than five percent on Tuesday, 28 September 2021, despite announcing better-than-expected results for its fiscal third quarter. The company reported adjusted earnings of 85 cents per share, up from 77 cents per share in the comparable period of 2020.

Revenue came in at $1.181 billion, compared to $1.07 billion in the year-ago quarter. Analysts were expecting IHS Markit Ltd. (NYSE:INFO) to report adjusted earnings of 83 cents per share on revenue of $1.17 billion.

IHS Markit Ltd. (NYSE:INFO) said that revenue from its financial services increased 10 percent to $490 million, while revenue from the transportation segment rose 16 percent to $347 million. In comparison, resources revenue remained nearly flat at $208 million.

Discussing the results, CEO Lance Uggla said:

“We had another great quarter and we expect to finish the year strong. I am very proud of our team’s execution and partnership with our customers as we manage to the merger with S&P Global.”

1. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 87

Shares of Micron Technology, Inc. (NASDAQ:MU) slightly moved down on Wednesday, September 29, 2020, after the Idaho-based chipmaker issued weak first-quarter outlook along with its fiscal fourth-quarter results.

The manufacturer of DRAM and NAND chips reported adjusted earnings of $2.42 per share for the three months ended 2 September 2021, representing a surge of more than two-folds from the year-ago quarter. Analysts were expecting Micron Technology, Inc. (NASDAQ:MU) to report adjusted earnings of $2.33 per share.

Revenue for the quarter jumped 37 percent on a year-over-year basis to $8.27 billion, beating the consensus forecast of $8.23 billion.

Speaking on the results, CEO Sanjay Mehrotra said:

“Micron’s outstanding fourth quarter execution capped a year of several key milestones. In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend.”

Looking forward, Micron Technology, Inc. (NASDAQ:MU) expects adjusted earnings in the range of $2 – $2.20 per share and revenue between $7.45 billion – $7.85 billion for its fiscal first quarter. The guidance missed analysts’ average estimate of $2.53 per share for earnings and $8.54 billion for revenue.

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