5 Stocks Drawing Attention on Earnings Reports

In this article, we discuss the 5 stocks drawing attention on earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Drawing Attention on Earnings Reports.

5. Match Group, Inc. (NASDAQ:MTCH)

Number of Hedge Fund Holders: 56

Shares of Match Group, Inc. (NASDAQ:MTCH) fell over four percent in the after-hours trading session on Tuesday, January 1, 2022, after announcing lower-than-expected financial results for the fourth quarter.

Match Group, Inc. (NASDAQ:MTCH) reported a loss of 60 cents per share, compared to earnings of 50 cents per share in the same period of 2020. Revenue for the quarter jumped 24 percent to $806 million. The results missed analysts’ average estimate of 53 cents per share for earnings and $818.2 million for revenue.

In addition, the company issued a weak sales outlook for the first quarter, citing the negative effects of the new coronavirus variants. Match Group, Inc. (NASDAQ:MTCH) expects to generate revenue of $790 – $800 million versus the consensus forecast of 835.7 million.

In a letter to shareholders, CEO Shar Dubey said in a statement:

“As we look to 2022, there are many more opportunities we plan to tackle. Tinder continues to find ways to make the app more effective and fun to use for its growing user base. Hinge is well on its way to becoming the second largest global dating app within a few years’ time and is now focusing on expansion into non-English speaking markets.”

4. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 58

Starbucks Corporation (NASDAQ:SBUX) recently posted better-than-expected sales for its fiscal first quarter. However, its adjusted profit missed expectations, sending its shares down nearly three percent in the pre-market trading session on Wednesday, January 2, 2022.

The Seattle-based coffee giant reported adjusted earnings of 72 cents per share, up 18 percent versus last year but below estimates of 80 cents per share. On the bright side, Starbucks Corporation (NASDAQ:SBUX) posted revenue of $8.1 billion, up 19 percent on a year-over-year basis and above analysts’ average estimate of $7.95 billion.

Global comparable store sales jumped 13 percent in the quarter. However, same-store sales declined by 14 percent in China, its second-largest market, due to mobility restrictions in several parts of the country. Among other updates, Starbucks Corporation (NASDAQ:SBUX) said that it opened 484 new stores during the quarter.

Looking forward, Starbucks Corporation (NASDAQ:SBUX) now expects its adjusted EPS to increase by 8 – 10 percent in its FY 2022, versus its previous forecast of at least 10 percent surge.

Speaking on the results, CEO Kevin Johnson said:

“As we enter the third year of this pandemic, our stores continue to play an important role as a community gathering place that offers safe, familiar and convenient experiences for our customers. Although demand was strong, this pandemic has not been linear, and the macro environment remains dynamic as we experienced higher-than-expected inflationary pressures, increased costs due to Omicron and a tight labor market.”

3. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 65

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) climbed more than 11 percent in the pre-market trading session on Wednesday, January 2, 2022, after delivering solid profit and sales for the fourth quarter.

Advanced Micro Devices, Inc. (NASDAQ:AMD) reported adjusted earnings of 92 cents per share, surpassing estimates of 79 cents per share. In addition, revenue for the quarter soared 49 percent versus last year to $4.83 billion, topping expectations of $4.53 billion

The California-based semiconductor giant also issued its sales outlook for 2022. Advanced Micro Devices, Inc. (NASDAQ:AMD) expects to post revenue of around $21.5 billion for the current fiscal year, translating to a year-over-year increase of 31 percent.

Discussing the results, CEO of Advanced Micro Devices, Inc. (NASDAQ:AMD), Lisa Su, said:

“2021 was an outstanding year for AMD with record annual revenue and profitability. Each of our businesses performed extremely well, with data center revenue doubling year-over-year driven by growing adoption of AMD EPYC processors across cloud and enterprise customers.”

2. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 123

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) took a deep dive in the pre-market trading session on Wednesday, January 2, 2022, hitting a nearly nine-month low, following its fourth-quarter results.

PayPal Holdings, Inc. (NASDAQ:PYPL) reported adjusted earnings of $1.11 per share, slightly higher than $1.08 per share in the comparable period of 2020. Revenue for the quarter rose 13 percent on a year-over-year basis to $6.92 billion.

Analysts were expecting PayPal Holdings, Inc. (NASDAQ:PYPL) to post earnings of $1.12 per share on revenue of $6.87 billion. Total payment volume (TPV), a key growth driver, jumped 23 percent to $339.5 billion in the quarter.

Looking forward, PayPal Holdings, Inc. (NASDAQ:PYPL) expects adjusted earnings of around 87 cents per share for the first quarter, below expectations of $1.16 per share. In addition, it projected revenue growth of six percent for the same period.

1. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Shares of Alphabet Inc. (NASDAQ:GOOG) climbed more than eight percent in the early trading Wednesday, January 2, 2022, after delivering another strong quarter. The company’s market value also rose to $1.977 trillion, hovering very close to the $2 trillion mark.

Alphabet Inc. (NASDAQ:GOOG) reported earnings of $30.69 for the fourth quarter, crushing analysts’ average estimate of $27.34 per share. Revenue for the quarter jumped to $75.33 billion, easily beating expectations of $72.17 billion.

In addition, Alphabet Inc. (NASDAQ:GOOG) also reported its segment-wise sales performance. Its advertising revenue for the quarter climbed 33 percent versus last year to $61.24 billion, while cloud revenue soared 45 percent to $5.54 billion. In comparison, YouTube ad revenue came in at $8.6 billion versus $6.9 billion in the year-ago period.

Speaking on the results, CEO Sundar Pichai said:

“Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business continuing to grow strongly.”

You can also take a peek at Top Dividend Stock Picks of Billionaire George Soros and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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