5 Stocks Gaining Attention on Earnings Reports

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

5. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 56

Shares of Electronic Arts Inc. (NASDAQ:EA) hit a one-month high in the pre-market trading session on Thursday, 4 November 2021, after posting solid revenue for its fiscal second quarter.

The leading videogame publisher reported earnings of $1.02 per share, well above 63 cents per share in the comparable period of 2020. Revenue for the quarter came in at $1.83 billion, compared to revenue of $1.15 billion it generated in the same period last year. Analysts were expecting Electronic Arts Inc. (NASDAQ:EA) to report earnings of  $1.17 per share on revenue of $1.79 billion.

The company also updated the financial outlook for its fiscal third quarter. Electronic Arts Inc. (NASDAQ:EA) expects to earn 2 cents per share on revenue of approx. $1.75 billion for the third quarter.

Speaking on the results, CFO Blake Jorgensen said:

“EA delivered another strong quarter, primarily driven by our EA SPORTS titles and Apex Legends. “Based on our confidence in our franchises and live services, we are again raising guidance this quarter. We’re positioned for a strong holiday season driven by our exciting Battlefield 2042 game, with growth drivers in place for this year, next year, and beyond.”

4. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 59

Humana Inc. (NYSE:HUM) recently caught investors’ attention after announcing mixed financial results for the third quarter. The health insurer reported adjusted earnings of $4.83 per share, beating the consensus forecast of $4.66 per share.

The company had earned $3.08 per share on an adjusted basis in the comparable period of 2020. On the downside, revenue of $20.70 billion for the quarter slightly fell short of $20.90 billion estimated by analysts.

Humana Inc. (NYSE:HUM) also trimmed its financial outlook for 2021, citing coronavirus headwinds. It expects adjusted earnings of about $20.50 per share for the full year, compared to its previous forecast of $21.25 – $21.75 per share.

Commenting on the results, CEO Bruce Broussard said:

“Despite pandemic-related impacts, Humana had a strong third quarter, which we attribute largely to the strength of our Medicare Advantage (MA) offerings, highlighted by our individual MA membership expected to grow 11 percent year-over-year, ahead of industry expectations.”

3. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 59

Shares of MGM Resorts International (NYSE:MGM) rose nearly two percent in the pre-market trading session on Thursday, 4 November 2021, after it surprised investors by reporting a profit for the third quarter.

The hospitality and entertainment company reported adjusted earnings of 3 cents per share, compared to a loss of $1.08 per share in the year-ago quarter. Analysts were expecting MGM Resorts International (NYSE:MGM) to post a loss of 1 cent per share.

In addition, revenue for the quarter climbed 140 percent on a year-over-year basis to $2.7 billion, ahead of the consensus forecast of $2.4 billion. If we look at the performance of major segments, revenue from the Las Vegas Strip Resorts climbed 187 percent to $1.4 billion, while revenue from MGM China skyrocketed 517 percent to $289 million in the quarter. In comparison, revenue from regional operations jumped 66 percent versus last year to $925 million.

2. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 61

Shares of Roku, Inc. (NASDAQ:ROKU) fell to a seven-month low in the pre-market trading session on Thursday, 4 November 2021, after posting lower-than-expected revenue for the third quarter. The company’s revenue for the quarter climbed 51 percent on a year-over-year basis to $680 million but fell short of analysts’ average estimate of $684 million.

On the bright side, quarterly earnings of 48 cents per share easily surpassed the consensus forecast of 6 cents per share. Roku, Inc. (NASDAQ:ROKU) had reported earnings of 9 cents per share on revenue of $452 million for the comparable period of 2020.

Looking forward, Roku, Inc. (NASDAQ:ROKU) expects revenue in the range of $885 million – $900 million for the fourth quarter, below the consensus forecast of $946 million.

Addressing shareholders, Roku, Inc. (NASDAQ:ROKU) said in a statement:

“In the third quarter, ARPU surpassed the milestone of $40 (trailing 12-month basis) and grew nearly 50% year-over-year. As the global shift to TV streaming continues, our performance demonstrates the strength of our business fundamentals and the momentum of our platform monetization.”

1. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 67

CVS Health Corporation (NYSE:CVS) made a new 52-week high of $96.57 on Wednesday, 3 November 2021, after beating expectations for the third quarter. The healthcare company reported adjusted earnings of $1.97 per share, up from $1.66 per share in the comparable period of 2020.

Revenue for the quarter increased 10 percent on a year-over-year basis to $73.8 billion. Analysts were expecting CVS Health Corporation (NYSE:CVS) to report earnings of $1.79 per share on revenue of $70.5 billion.

If we look at the year-over-year performance of key businesses, revenue from the health care benefits segment rose 9.5 percent, while revenue from the pharmacy services segment increased 9.3 percent in the quarter. In comparison, revenue from the retail segment jumped 10 percent versus last year, partly driven by the administration of coronavirus vaccinations and diagnostic testing.

CVS Health Corporation (NYSE:CVS) also raised its financial outlook for the full year. It expects adjusted earnings in the range of $7.90 – $8 per share, compared to its previous guidance between $7.70 – $7.80 per share. The revised outlook is better than analysts’ average estimate of $7.79 per share.

Speaking on the results, CEO Karen Lynch said:

“We outperformed expectations once again and continue to lead the way in changing how, when and where care is delivered for millions of Americans. Our services are responsive to evolving consumer needs, from administering millions of COVID-19 tests and vaccines to offering primary care accessible from virtually anywhere, and our touchpoints allow for unmatched impact.”

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