5 Stocks Gaining Attention After Beating Profit Expectations

In this article, we discuss the 5 stocks gaining attention after beating profit expectations. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Gaining Attention After Beating Profit Expectations.

5. Advance Auto Parts, Inc. (NYSE:AAP)

Number of Hedge Fund Holders: 34

Advance Auto Parts, Inc. (NYSE:AAP) recently caught investors’ attention after announcing better-than-expected financial results for the third quarter. The automotive aftermarket parts provider reported adjusted earnings of $3.21 per share, up 21.6 percent from the same period last year.

Revenue came in at $2.62 billion, up 3.1 percent versus the year-ago quarter. Analysts were expecting Advance Auto Parts, Inc. (NYSE:AAP) to report adjusted earnings of $2.87 per share on revenue of $2.58 billion.

The company also updated its sales outlook for 2021. Advance Auto Parts, Inc. (NYSE:AAP) now expects revenue in the range of $10.90 – $10.95 billion for the full year, compared to its previous forecast between $10.60 – $10.80 billion.

Speaking on the results, CEO Tom Greco said in a statement:

“In Q3, we delivered another quarter of improved top-line growth and margin expansion and returned significant cash to our shareholders in line with the strategy we outlined in April.”

4. Aramark (NYSE:ARMK)

Number of Hedge Fund Holders: 36

Shares of Aramark (NYSE:ARMK) traded nearly flat in the pre-market trading session on Tuesday, 16 November 2021, despite delivering solid profit and sales for its fiscal fourth quarter.

The Pennsylvania-based food service company reported adjusted earnings of 56 cents per share, crushing the consensus forecast of 19 cents per share. Quarterly revenue of $3.55 billion also easily surpassed the consensus forecast of $3.29 billion. Aramark (NYSE:ARMK) had posted adjusted earnings of 21 cents per share on revenue of $2.69 million for the comparable period of 2020.

Looking forward, Aramark (NYSE:ARMK) projected organic growth in the range of 23 – 27 percent for its FY 2022, with sales expected to hit pre-pandemic levels by year-end.

Commenting on the quarter, CEO John Zillmer said:

“Our fourth quarter and full year results reflected the progress we have made across our business as organic revenue reached 87% of pre-COVID levels. The Company achieved record Net New Business performance across lines of business, geographies, and client size—demonstrating the execution of our strategic growth initiatives, which we are confident will position Aramark to drive higher sustainable growth and create meaningful value for our stakeholders.”

3. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 57

Shares of TransDigm Group Incorporated (NYSE:TDG) closed higher on Monday, 15 November 2021, after surpassing profit expectations for its fiscal fourth quarter. The aerospace manufacturing company reported adjusted earnings of $4.25 per share, up 47 percent from $2.89 per share in the year-ago quarter.

In addition, TransDigm Group Incorporated (NYSE:TDG) posted revenue of $1.28 billion, up 9 percent versus the same period last year. Analysts were looking for earnings of $3.52 per share on revenue of $1.32 billion.

Discussing the results, CEO Kevin Stein said:

“Trends remain favorable for the recovery of the commercial aerospace industry. Air traffic continues to improve globally, along with vaccination rates. The recovery remains primarily driven by domestic air travel, though international travel restrictions are starting to soften in certain markets, which is encouraging.”

2. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 64

Shares of The Home Depot, Inc. (NYSE:HD) rose to a new high in the pre-market trading session on Tuesday, 16 November 2021, after announcing strong financial results for the third quarter, as customers continue to spend on home improvement projects.

The Georgia-based home improvement retailer earned $3.92 per share in the quarter, up from $3.43 per share in the same period last year. Analysts were looking for earnings of $3.42 per share.

Revenue for the quarter rose nearly 10 percent on a year-over-year basis to $36.82 billion, crushing the consensus forecast of $34.95 billion. In addition, same-store sales increased to 6.1 percent, beating expectations of 2.4 percent growth with a big margin. Moreover, U.S. same-store sales also improved to 5.5 percent, beating the consensus forecast for a 2.3 percent surge.

CEO Craig Menear expressed his pleasure with the results, saying:

“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility. Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted.”

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 71

Shares of Walmart Inc. (NYSE:WMT) slightly moved down in the pre-market trading session on Tuesday, 16 November 2021, despite beating expectations for the third quarter. The retail giant reported adjusted earnings of $1.45 per share, up from $1.34 per share in the year-ago quarter.

Revenue came in at $140.53 billion, compared to $134.71 billion in the same period of 2020. Analysts were expecting Walmart Inc. (NYSE:WMT) to report earnings of $1.40 per share on revenue of $135.43 billion.

Comparable sales in the U.S. increased 9.2 percent, above expectations of 6.9 percent. Moreover, Sam’s Club comparable sales in the quarter jumped 13.9 percent versus last year and 25 percent versus 2019.

In addition, e-commerce sales in the U.S. rose 8 percent versus last year and about 87 percent versus 2019. On the downside, Walmart’s international sales decreased nearly 20 percent on a year-over-year basis to $23.6 billion.

Walmart Inc. (NYSE:WMT) also raised the earnings outlook for its FY 2022. The company now expects adjusted earnings of $6.40 per share, compared to its earlier outlook in the range of $6.20 – $6.35 per share. The updated guidance is also above the consensus forecast of $6.34 per share.

Speaking on the results, CEO Doug McMillon said:

“Our momentum continues with strong sales and profit growth globally. Our omnichannel focus is pushing digital penetration to record levels. We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world.”

You can also take a peek at 11 Best Hotel Stocks To Invest In and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.

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