5 Stocks Drawing Attention After Topping Quarterly Expectations

In this article, we discuss the 5 stocks drawing attention after topping quarterly expectations. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Drawing Attention After Topping Quarterly Expectations.

5. FLEETCOR Technologies, Inc. (NYSE:FLT)

Number of Hedge Fund Holders: 31

Shares of FLEETCOR Technologies, Inc. (NYSE:FLT) rose to a nearly four-month high on Wednesday, February 9, 2022, after announcing better-than-expected financial results for the fourth quarter.

FLEETCOR Technologies, Inc. (NYSE:FLT) reported adjusted earnings of $3.72 per share, up from $3.01 per share in the year-ago period. Revenue for the quarter jumped 30 percent versus last year to $802.3 million. The results topped analysts’ average estimate of $3.60 per share for earnings and $766.8 million for revenue.

The business payments company also released its financial outlook for 2022. FLEETCOR Technologies, Inc. (NYSE:FLT) expects adjusted earnings in the range of $15 – $15.5 per share and revenue between $3.190 – $3.250 billion for the current fiscal year.

4. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 31

Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) jumped over 10 percent on Wednesday, February 9, 2022, following its upbeat financial performance for the fourth quarter. The latest results were mainly helped by price hikes and strong online sales during the quarter.

Chipotle Mexican Grill, Inc. (NYSE:CMG) earned $5.58 per share on an adjusted basis, well above $3.48 per share for the same period of 2020. Analysts were looking for earnings of $5.25 per share.

In addition, Chipotle Mexican Grill, Inc. (NYSE:CMG) posted revenue of $2 billion for the quarter, up 22 percent on a year-over-year basis and in line with the expectations. Comparable restaurant sales also rose 15.2 percent. Moreover, digital sales increased 3.8 percent and represented nearly 42 percent of the total sales.

Looking forward, Chipotle Mexican Grill, Inc. (NYSE:CMG) projected 2022 comparable restaurant sales growth between mid to high single digits range. Moreover, the company plans to open 235 – 250 new restaurants during the current fiscal year.

Speaking on the results, CEO Brian Niccol said:

“2021 was an outstanding year for Chipotle, highlighting the strength and resiliency of our brand. Together, we accomplished many incredible things as our passionate employees remained dedicated to delivering excellent guest experiences, aligned with our purpose and values.”

3. Paycom Software, Inc. (NYSE:PAYC)

Number of Hedge Fund Holders: 40

Shares of Paycom Software, Inc. (NYSE:PAYC) rose to a nearly one-month high on Wednesday, February 9, 2022, after delivering solid profit and sales for the fourth quarter. The provider of online payroll services and HR software solutions posted adjusted earnings of $1.11 per share, beating expectations of $1.08 per share.

Revenue came in at $285.0 million, above analysts’ average estimate of $275.66 million. In the same quarter of 2020, Paycom Software, Inc. (NYSE:PAYC) posted adjusted earnings of 84 cents per share on revenue of $220.9 million for the fourth quarter of 2020.

Moving forward, Paycom Software, Inc. (NYSE:PAYC) expects revenue in the range of $342 – $344 million for the current quarter and between $1.314 – $1.316 billion for the full year.

CEO Chad Richison expressed his satisfaction with the latest performance. Richison said in a statement:

“We delivered very strong results in 2021, reflecting outstanding execution and robust demand for Paycom’s differentiated solution. Our employee usage strategy, where employees are now able to do their own payroll with Beti™, helped deliver record annual revenue retention. Combining this with the momentum we are seeing and the sales and marketing investments we’ve made, we believe we are set up to deliver strong, high-margin revenue growth for years to come.”

2. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 52

Shares of Enphase Energy, Inc. (NASDAQ:ENPH) climbed over 12 percent on Wednesday, February 9, 2022, after the energy management technology company surpassed profit and sales expectations for the fourth quarter.

Enphase Energy, Inc. (NASDAQ:ENPH) reported adjusted earnings of 73 cents per share, compared to 51 cents per share in the fourth quarter of 2020. Revenue for the quarter increased to $412.7 million versus $264.8 million in the same period one year ago. The results easily surpassed analysts’ average estimate of 58 cents per share for earnings and $397 million for revenue.

The company also released its sales outlook for the first quarter. Enphase Energy, Inc. (NASDAQ:ENPH) expects to generate revenue in the range of $420 – $440 million for the current quarter, above the consensus forecast of $409 million.

1. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 61

CVS Health Corporation (NYSE:CVS) recently delivered impressive profit and sales for the fourth quarter, helped by elevated demand for coronavirus vaccines and home-testing kits. The Woonsocket-based healthcare giant earned $1.98 per share on an adjusted basis, up from $1.30 per share in the fourth quarter of 2020.

Revenue for the quarter jumped 10.1 percent on a year-over-year basis to $76.6 billion. Analysts were expecting CVS Health Corporation (NYSE:CVS) to post earnings of $1.93 per share on revenue of $75.67 billion.

CVS Health Corporation (NYSE:CVS) also released its segment-wise sales performance. Revenue from its health care benefits segment rose 8.4 percent, while revenue from the pharmacy services segment increased 8.2 percent. In comparison, retail revenue jumped 12.7 percent in the quarter.

Among other updates, CVS Health Corporation (NYSE:CVS) reported that it administered over 20 million coronavirus vaccines during the quarter, significantly higher than around 11 million in the third quarter and 17 million in the second quarter.

Looking forward, CVS Health Corporation (NYSE:CVS) expects a drop of 70 – 80 percent in the number of vaccines it will administer in the current fiscal year. The in-store diagnostic testing for 2022 is also expected to decline in the range of 40 – 50 percent versus last year. The weak outlook sent CVS stock down more than five percent on Wednesday, February 9, 2022.

Speaking on the results, CEO Karen Lynch said in a statement:

“We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health. That’s clearly reflected in our performance, but more importantly in our potential.”

You can also take a peek at 10 Best Dividend Stocks According to Thomas Steyer’s Farallon Capital and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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