5 Stocks in Focus After Posting Their Earnings Reports

In this article, we discuss the 5 stocks in focus after posting their earnings reports. If you want to read our detailed analysis of these companies, go directly to the 11 Stocks in Focus After Posting Their Earnings Reports.  

5. Mister Car Wash, Inc. (NYSE:MCW)

Number of Hedge Fund Holders: 25

Shares of Mister Car Wash, Inc. (NYSE:MCW) slightly moved down after the opening bell on Friday, March 25, 2022, despite announcing better-than-expected profit and sales for the fourth quarter.

Mister Car Wash, Inc. (NYSE:MCW) reported adjusted earnings of 10 cents per share, up from 6 cents per share in the fourth quarter of 2020. Revenue jumped 18.2 percent on a year-over-year basis to $191.5 million.

The results exceeded the consensus of 8 cents per share for earnings and $188.68 for revenue. Among other updates, Mister Car Wash, Inc. (NYSE:MCW) reported that it opened 36 new car wash sites during the fourth quarter.

Looking forward, Mister Car Wash, Inc. (NYSE:MCW) expects adjusted earnings in the range of 44 – 47 cents per share and revenue between $875 – $895 million for the current fiscal year.

Discussing the results, CEO John Lai said:

“We are pleased with the way we closed 2021 and the strong start we are seeing in 2022. Demand for our services remains healthy as more motorists value the convenience of professional car washing and the ease of being an Unlimited Wash Club member.”

4. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Holders: 30

Darden Restaurants, Inc. (NYSE:DRI) recently announced disappointing financial results for its fiscal third quarter. The Orlando-based restaurant operator earned $1.93 per share, compared to 98 cents per share in the same period last year.

Revenue for the quarter jumped 41.3 percent on a year-over-year basis to $2.45 billion. However, analysts were expecting Darden Restaurants, Inc. (NYSE:DRI) to post earnings of $2.10 per share on revenue of $2.51 billion.

Darden Restaurants, Inc. (NYSE:DRI) also cut the profit outlook for its fiscal 2022. The company is now looking for earnings in the range of $7.30 – $7.45 per share, compared to its previous forecast of $7.35 – $7.60 per share.

Commenting on the results, CEO Gene Lee said:

“This was a quarter of stark contrasts and I’m pleased with our performance in this highly volatile environment. It began with record sales in December. However, the Omicron variant significantly impacted guest demand, restaurant staffing and operating expenses in January.”

3. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 30

Shares of NIO Inc. (NYSE:NIO) turned red after the opening bell on Friday, March 25, 2022, after issuing a weak sales outlook for the first quarter. The Chinese electric vehicle maker expects to generate revenue in the range of $1.511 – $1.567 billion for the current quarter.

The outlook represents a surge of 20.6 – 25.1 percent over the first quarter of 2021 but is below analysts’ average estimate of $1.66 billion.

The weak guidance overshadowed the better-than-expected quarterly results of NIO Inc. (NYSE:NIO). The company reported an adjusted loss of 16 cents per share for the fourth quarter, narrower than analysts’ average estimate for a loss of 21 cents per share.

Revenue came in at $1.55 billion, up 49.1 percent versus last year and above the consensus of $1.53 billion. Among other updates, NIO Inc. (NYSE:NIO) reported that it expects to deliver 25,000 – 26,000 vehicles in the current quarter.

Speaking on the results, CFO Steven Wei Feng said:

“With steadily increasing deliveries, stable average selling price, and improving manufacturing efficiency, we have achieved solid financial performance for the fourth quarter and full year of 2021 with the vehicle margin reaching 20.1% in 2021. To provide better experience to our growing global user base and accelerate our market expansion, we will continue to make decisive investments in products, core technologies and services for the years ahead.”

2. KB Home (NYSE:KBH)

Number of Hedge Fund Holders: 36

Shares of KB Home (NYSE:KBH) recently plummeted to a nearly 14-month low after missing profit and sales expectations for its fiscal first quarter. The homebuilding company reported earnings of $1.47 per share, up from $1.02 per share in the same period last year.

In addition, KB Home (NYSE:KBH) posted revenue of $1.39 billion, representing a surge of 23 percent on a year-over-year basis. The results fell short of analysts’ average estimate of $1.56 per share for earnings and $1.50 billion for revenue.

KB Home (NYSE:KBH) also issued the sales outlook for its fiscal 2022. It expects to generate revenue in the range of $7.20 – $7.60 billion for the full year.

Discussing the results, CEO Jeffrey Mezger said:

“Market conditions are healthy, driven by a low supply of available inventory and favorable demographics, along with steady employment and wage growth. Against this backdrop, we produced a seasonally strong monthly absorption pace of 6.6 net orders per community, as demand for our personalized homes remained robust.”

1. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 36

Shares of General Mills, Inc. (NYSE:GIS) rose for two straight days after announcing financial results for its fiscal third quarter on Wednesday, March 23, 2022. The Minnesota-based packaged food producer reported adjusted earnings of 84 cents per share, beating expectations of 78 cents per share.

Revenue came in at $4.538 billion, nearly unchanged from last year and slightly below the consensus of $4.56 billion. On the bright side, General Mills, Inc. (NYSE:GIS) raised the financial outlook for its fiscal 2022.

General Mills, Inc. (NYSE:GIS) now expects adjusted earnings per share in the range of flat to a 2 percent rise, compared to its previous forecast between a 2 percent drop and a 1 percent increase. In addition, the company now expects revenue growth of about 5 percent, compared to its previous growth outlook between 4 – 5 percent.

You can also take a peek at 10 Best Roth IRA Stocks To Buy in 2022 and 10 Undervalued Dividend Kings To Buy In 2022.

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