5 Stocks Making Big Moves After Releasing Their Financial Results

In this article, we discuss the 5 stocks making big moves after releasing their financial results. If you want to read our detailed analysis of these companies, go directly to the 11 Stocks Making Big Moves After Releasing Their Financial Results.

5. International Business Machines Corporation (NYSE:IBM)

 Number of Hedge Fund Holders: 44

Shares of International Business Machines Corporation (NYSE:IBM) rose nearly two percent in the after-hours trading session on Tuesday, April 19, 2022, after beating expectations for the first quarter.

International Business Machines Corporation (NYSE:IBM) reported adjusted earnings of $1.40 per share, topping estimates of $1.38 per share. Revenue for the quarter rose 8 percent on a year-over-year basis to $14.2 billion, exceeding analysts’ average estimate of $13.85 billion.

International Business Machines Corporation (NYSE:IBM) also released its segment-wise sales performance. Its software revenue rose 12.3 percent to $5.8 billion and consulting revenue increased 13.3 percent to $4.8 billion in the quarter. On the downside, infrastructure revenue slipped 2.3 percent to $3.2 billion, while financing revenue plummeted 26.2 percent to $0.2 billion.

Speaking on the results, CEO Arvind Krishna said in a statement:

“Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we’re a more focused business and our results reflect the execution of our strategy. We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model.”

4. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 72

Shares of The Charles Schwab Corporation (NYSE:SCHW) recently dropped to a nearly six-month low after missing profit and revenue expectations for the first quarter. The Texas-based financial services company earned 77 cents per share on an adjusted basis, down from 84 cents per share in the same period of 2021.

Revenue also decreased to $4.67 billion, from $4.72 billion in the first quarter of 2021. Analysts were expecting The Charles Schwab Corporation (NYSE:SCHW) to report earnings of 84 cents per share on revenue of $4.83 billion.

Among other updates, The Charles Schwab Corporation (NYSE:SCHW) announced that its core net new assets increased to $121 billion, representing an annualized organic growth rate of 6 percent. Moreover, the company ended the quarter with active brokerage accounts of 33.6 million and total client assets of $7.86 trillion, representing a year-over-year surge of 5 percent and 11 percent, respectively.

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Shares of Johnson & Johnson (NYSE:JNJ) hit a new 52-week high of $185.94 on Tuesday, April 19, 2022, following its upbeat profit for the first quarter. The New Jersey-based healthcare giant reported adjusted earnings of $2.67 per share, up from $2.59 per share in the year-ago period and above the consensus of $2.58 per share.

On the downside, Johnson & Johnson (NYSE:JNJ) posted revenue of $23.4 billion, below analysts’ average estimate of $23.6 billion. If we look at the performance of its flagship segments, its pharmaceutical revenue rose 6.3 percent to $12.87 billion, while medical devices revenue increased 5.9 percent to $6.97 billion in the quarter. In comparison, revenue from its consumer health segment slipped 1.5 percent to $3.59 billion.

Johnson & Johnson (NYSE:JNJ) also updated its earnings outlook for 2022. It now expects adjusted earnings in the range of $10.15 – $10.35 per share, down from its previous guidance between $10.40 – $10.60 per share.

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 84

Shares of Bank of America Corporation (NYSE:BAC) rose for two consecutive trading sessions after announcing better-than-expected financial results for the first quarter on Monday, April 18, 2022.

Bank of America Corporation (NYSE:BAC) reported earnings of 80 cents per share, compared to 86 cents per share in the same period last year. Revenue came in at $23.2 billion versus $22.8 billion in the comparable period of 2021. The results exceeded analysts’ average estimate of 74 cents per share for earnings and $23.1 billion for revenue.

In addition, Bank of America Corporation (NYSE:BAC) reported that its net interest income increased 13 percent on a year-over-year basis to $11.6 billion. The surge was attributed to solid deposit growth and higher interest rates in the quarter.

Speaking on the results, CEO Brian Moynihan said in a statement:

“We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year over year we grew loans $70 billion and deposits by $240 billion.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) appears to be in serious trouble following its lackluster performance in the first quarter. The California-based subscription streaming service lost 200,000 subscribers in the first quarter, contrary to analysts’ expectations for additions of 2.7 million subscribers.

The company blamed the suspension of services in Russia for losing 700,000 subscribers. However, Netflix, Inc. (NASDAQ:NFLX) also lost nearly 640,000 subscribers in the U.S. and Canada, and many are linking the losses with the price hikes in the two countries. Moreover, the intensifying competition from rival streaming services is also making it hard for the company to gain more customers.

In a letter to shareholders, Netflix, Inc. (NASDAQ:NFLX) said that over 100 million households are violating its rules by sharing passwords of their accounts. The company also hinted at a global crackdown on them as it looks to reduce losses and boost its subscriber base.

Coming back to the first-quarter results, Netflix, Inc. (NASDAQ:NFLX) reported earnings of $3.53 per share, down from $3.75 in the comparable period of 2021. Revenue came in at $7.87 billion, up from $7.16 billion in the year-ago quarter. Analysts were looking for earnings of $2.89 per share on revenue of $7.93 billion.

Shares of Netflix, Inc. (NASDAQ:NFLX) plummeted to their lowest price in more than three years, losing nearly 30 percent of their value in the pre-market trading session on Wednesday, April 20, 2022, following its disappointing Q1 performance.

You can also take a peek at 7 Best Stocks to Buy Now According to Bill Ackman and 10 Undervalued Dividend Kings To Buy In 2022.

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