5 Stocks Making Big Moves on Earnings Reports

In this article, we discuss the 5 stocks making big moves on earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Making Big Moves on Earnings Reports.

5. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 45

Shares of D.R. Horton, Inc. (NYSE:DHI) hit a nearly three-month high on Tuesday, 9 November 2021, after announcing better-than-expected profit and sales for its fiscal fourth quarter. The home construction company reported earnings of $3.70 per share, well above $2.24 per share in the year-ago quarter.

Analysts were expecting D.R. Horton, Inc. (NYSE:DHI)  to report earnings of $3.39 per share. Revenue came in at $8.109 billion versus $6.40 billion in the year-ago quarter and above analysts’ average estimate of $7.829 billion.

Speaking on the results, Chairman Donald Horton said in a statement:

“Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across most of our markets. We have continued to experience significant disruptions in our supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market.”

4. DoorDash, Inc. (NYSE:DASH)

Number of Hedge Fund Holders: 45

Shares of DoorDash, Inc. (NYSE:DASH) climbed more than 17 percent in the pre-market trading session on Wednesday, 10 November 2021. The surge follows the company’s third-quarter results and announcement to acquire food delivery platform Wolt in a deal valued at $8.1 billion.

DoorDash, Inc. (NYSE:DASH) reported a loss of 30 cents per share for the quarter, wider than the consensus estimate for a loss of 26 cents per share. On the bright side, revenue of $1.3 billion exceeded analysts’ average estimate of $1.18 billion. In comparison, the company had reported a loss of 96 cents per share on revenue of $879 million in the third quarter of 2020.

If we look at the important growth indicators, total orders in the quarter climbed 47 percent on a year-over-year basis to 347 million. Moreover, the gross order volume (GOV) jumped 44 percent to $10.4 billion. Looking forward, DoorDash, Inc. (NYSE:DASH) expects its  GOV in the range of $10.3 billion to $10.7 billion for the fourth quarter.

3. RingCentral, Inc. (NYSE:RNG)

Number of Hedge Fund Holders: 47

Shares of RingCentral, Inc. (NYSE:RNG) soared more than 22 percent in the pre-market trading session on Wednesday, 10 November 2021, after delivering impressive financial results for the third quarter.

The Belmont-based company earned 36 cents per share on an adjusted basis, up from 26 cents per share in the same period last year. Analysts were expecting RingCentral, Inc. (NYSE:RNG) to report adjusted earnings of 33 cents per share.

In addition, revenue for the quarter climbed 37 percent versus last year to $415 million, beating the consensus estimate of $393 million. Subscription revenue for the quarter jumped 38 percent on a year-over-year basis to $385 million.

RingCentral, Inc. (NYSE:RNG) also raised its financial guidance for 2021. The company now expects adjusted earnings of $1.32 per share versus its previous forecast between $1.28 – $1.30 per share. Moreover, it is anticipating revenue in the range of $1.580 – $1.581 billion, compared to its previous outlook between $1.539 – $1.545 billion.

Commenting on the quarter, CEO Vlad Shmunis said:

“With our award-winning RingCentral Message Video Phone (or MVP) platform, our seamless integration with an industry-leading cloud contact center solution, and our unparalleled market access with strategic partners, we believe we are uniquely positioned to meet the rising global demand for cloud-based communications solutions.”

2. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 49

Shares Roblox Corporation (NYSE:RBLX) skyrocketed more than 42 percent on Tuesday, 9 November 2021, after announcing its financial results for the third quarter. The online game platform reported a loss of 13 cents per share, narrower than the loss of 26 cents per share posted in the year-ago quarter. Analysts were looking for a loss of 14 cents per share.

In addition, Roblox Corporation (NYSE:RBLX) posted revenue of $509.3 million, representing a surge of more than two folds from the same period last year. Total booking in the quarter jumped 28 percent versus last year to $637.8 million, beating the consensus forecast of $618.8 million.

Moreover, Roblox Corporation (NYSE:RBLX) announced that the average daily active users (DAUs) in the quarter jumped 31 percent on a year-over-year basis to 47.3 million. In comparison, hours engaged, a key growth indicator, jumped 28 percent versus last year to 11.2 billion.

Discussing the results, CFO Michael Guthrie said:

“Growth in all of our core metrics – DAUs, hours, and bookings – displayed strong year-over-year growth despite lapping Covid-impacted periods and back-to-school seasonality. Notwithstanding significant investments in developer economics and hiring, we also generated healthy cash from operations. Based on our October results, we appear to be having a great start to the last quarter of the year.”

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

Number of Hedge Fund Holders: 143

Shares of PayPal Holdings, Inc. (NASDAQ:PYPL) plummeted to a nearly one-year low on Tuesday, 9 November 2021, after its third-quarter revenue missed expectations. The online payment processor generated revenue of $6.18 billion in the third quarter, up 13 percent versus last year but below the consensus forecast of $6.23 billion.

On the bright side, the adjusted earnings of $1.11 per share for the quarter surpassed analysts’ average estimate of $1.07 per share. In comparison, PayPal Holdings, Inc. (NASDAQ:PYPL) had posted adjusted earnings of $1.07 per share in the comparable period of 2020.

Looking at the key growth drivers, total payment volume (TPV) in the quarter jumped 26 percent on a year-over-year basis to $310 billion. TPV on its flagship Venmo app rose 36 percent versus last year to $60 billion. In addition, PayPal Holdings, Inc. (NASDAQ:PYPL) added 13.3 million net new accounts in the quarter, bringing the total count to 416 million.

The company also issued its financial guidance for the fourth quarter. PayPal Holdings, Inc. (NASDAQ:PYPL) expects adjusted earnings of $1.12 per share and revenue in the range of $6.85 billion – $6.95 billion. The outlook missed the consensus forecast of $1.27 per share for earnings and $7.24 billion for revenue.

You can also take a peek at 10 Growth Stocks to Buy According to Jay Chen’s Himension Capital and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.

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