5 Must-Watch Earnings Reports

In this article, we discuss the 5 must-watch earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Must-Watch Earnings Reports.

5. Agilent Technologies, Inc. (NYSE: A)

Number of Hedge Fund Holders: 39

Agilent Technologies, Inc. (NYSE: A) was founded in 1999 by the spin-off of Hewlett-Packard’s test, measurement, and related segments. The company went public in November 1999 by raising $2.1 billion, marking a record IPO in the history of Silicon Valley at that time. Today, it is a leading provider of instruments, applications, and services to various industries.

Agilent stock recently caught investors’ attention after hitting an all-time high of $171.21. The surge was mainly driven by its solid Q3 results.  The company reported earnings of 86 cents per share for the quarter, up from 64 cents per share in the comparable period of 2020.

Agilent earned $1.10 per share on an adjusted basis, ahead of the consensus forecast of 99 cents per share. Revenue for the quarter jumped 26 percent on a year-over-year basis to $1.59 billion, exceeding expectations of $1.54 billion.

If we look at the performance of key segments, revenue from the life sciences and applied markets group rose 22 percent on a year-over-year basis to $680 million. In comparison, revenue from the CrossLab group jumped 21 percent to $560 million, while revenue from the diagnostics and genomics group climbed 44 percent to $346 million.

Agilent also updated its financial outlook for the full year. It expects adjusted earnings in the range of $4.28-$4.31 per share and revenue between $6.29 billion and $6.32 billion for FY 2021.

4. Synopsys, Inc. (NASDAQ: SNPS)

Number of Hedge Fund Holders: 41

Synopsys, Inc. (NASDAQ: SNPS) shares hit a new 52-week high of $325.08 after announcing better-than-expected results for the fiscal third quarter. The company reported earnings of $1.27 per share, down from $1.62 per share in the year-ago quarter. However, the adjusted earnings came in at $1.81 per share, up from $1.74 per share in the same period last year.

Total revenue for the quarter climbed 96 percent on a year-over-year basis to $1.06 billion. The results surpassed analysts’ average estimate of $1.78 per share for earnings and $1.04 billion for revenue.

Synopsys also released its financial guidance for the fourth quarter and a full year. The company expects adjusted earnings in the range of $1.75-$1.80 per share on revenue of $1.14 billion $1.17 billion for the current quarter. In addition, it expects adjusted earnings in the range of $6.78-$6.83 per share and revenue between $4.19 billion $4.22 billion for the full year.

3. Analog Devices, Inc. (NASDAQ: ADI)

Number of Hedge Fund Holders: 62

Analog Devices, Inc.’s (NASDAQ: ADI) history dates back to 1965 when two MIT graduates Ray Stata and Matthew Lorber founded the company in their shared apartment. Today, it is a leading manufacturer of precision performance electronic equipment such as high-performance analog and integrated circuits.

The company recently announced third-quarter earnings and revenue above expectations, mainly driven by improved gross margins. Analog Devices reported earnings of $1.35 per share for the three months ended July 31, well above 97 cents per share in the same period last year.

On an adjusted basis, earnings increased to $1.72 per share, ahead of the consensus forecast of $1.62 per share. Total revenue for the quarter jumped nearly 21 percent to $1.76 billion, surpassing analysts’ average estimate of $1.71 billion.

Praising the results, CEO Vincent Roche said, “ADI delivered record revenue and earnings for the second consecutive quarter with continued gross and operating margin expansion. All markets increased sequentially with our Industrial and Automotive segments once again achieving records. Robust bookings across all end markets, combined with lean inventories and ongoing capacity additions will enable us to close this year on a high note and continue to grow into fiscal 2022.”

Looking forward, Analog Devices expects adjusted earnings of $1.72 per share, +/-11 cents, for the fourth quarter. Moreover, it is anticipating Q4 revenue of $1.78 billion, +/-$70 million.

2. The TJX Companies, Inc. (NYSE: TJX)

Number of Hedge Fund Holders: 56

The TJX Companies, Inc. (NYSE: TJX), founded in 1987, is a leading off-price retailer operating more than 4,500 stores across nine countries. The company purchases liquidated merchandise from struggling vendors at low prices and pass the savings on to its consumers. In addition, it regularly refreshes its inventories to stay competitive. TJX also has a dedicated team of buyers who help the company in finding the right fashions.

TJX shares have been trading higher since reporting its financial results for the second quarter. The off-price retailer posted earnings of 64 cents per share for the quarter, compared to a loss of 18 cents per share in the same period last year.

Total sales for the quarter jumped 81 percent on a year-over-year basis to $12.08 billion. The results exceeded analysts’ average estimate of 59 cents per share for earnings and $11 billion for revenue. TJX said that store closures in the quarter hurt its total revenue by $300 million to $350 million.

1. Target Corporation (NYSE: TGT)

Number of Hedge Fund Holders: 66

Target Corporation (NYSE: TGT) is one of the biggest discount retailers in the U.S, operating more than 1,900 stores. The company recently announced better-than-expected financial results for the second quarter.

Target earned $3.64 per share on an adjusted basis, ahead of the consensus forecast of $3.51 per share. Revenue for the quarter rose 9.5 percent on a year-over-year basis to $25.16 billion, beating analysts average estimate of $24.99 billion.

Same-store sales in the quarter improved to 8.9 percent, better than the growth of 8.8 percent projected by analysts. In addition, digital comparable sales in the quarter increased to 10 percent. Looking forward, Target expects its comparable sales in the second half to grow in the high single-digit percentage.

Speaking on the results, CEO Brian Cornell said, “In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target’s leadership position in retail. We’ve spent years building and investing in the durable model we have today, which is supported by a differentiated strategy and the best team in retail.”

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