5 Stocks Making Headlines Following Earnings Reports

In this article, we discuss the 5 stocks making headlines following earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Making Headlines Following Earnings Reports. 

5. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 66

Shares of Biogen Inc. (NASDAQ:BIIB) fell over two percent on Thursday, February 3, 2022, after issuing a weak full-year outlook along with its fourth-quarter results.

The Massachusetts-based biotechnology company expects adjusted earnings in the range of $14.25 – $16.00 per share and revenue between $9.7 – $10.0 billion for 2022. The guidance missed analysts’ average estimate of $18.85 per share for earnings and $10.34 billion for revenue.

For the fourth quarter, Biogen Inc. (NASDAQ:BIIB) reported adjusted earnings of $3.39 per share, nearly in line with the expectations. Moreover, the quarterly revenue of $2.73 billion topped the consensus forecast of $2.62 billion.

Discussing the results, CEO of Biogen Inc. (NASDAQ:BIIB), Michel Vounatsos, said:

“Biogen continued to execute well in the fourth quarter despite the challenges we have faced. We have introduced the first FDA-approved treatment for Alzheimer’s disease in nearly 20 years, and we are engaging with the Centers for Medicare and Medicaid Services with the hope of finding a path for immediate patient access.”

4. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 74

Shares of Bristol-Myers Squibb Company (NYSE:BMY) closed higher on Friday, February 4, 2022, after announcing a better-than-expected profit for the fourth quarter. The New York-based pharmaceutical company earned $1.83 per share on an adjusted basis, up from $1.46 per share in the year-ago period.

Revenue came in at $11.99 billion versus $11.07 billion in the fourth quarter of 2020. Analysts were expecting Bristol-Myers Squibb Company (NYSE:BMY) to post earnings of $1.80 per share on revenue of $12 billion. If we look at the region-wise sales performance, U.S. sales jumped 11 percent to $7.5 billion, while international sales rose 4 percent to $4.5 billion in the quarter.

Bristol-Myers Squibb Company (NYSE:BMY) also issued its financial outlook for 2022. It expects adjusted earnings in the range of $7.65 – $7.95 per share and revenue of around $47 billion for the current fiscal year.

3. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 77

Shares of Merck & Co., Inc. (NYSE:MRK) slipped nearly four percent on Thursday, February 3, 2022, even after posting its fourth-quarter profit and sales above expectations. The New Jersey-based pharmaceutical company reported adjusted earnings of $1.80 per share, representing a big jump from 98 cents per share in the year-ago period.

Revenue for the quarter also climbed 24 percent versus last year to $13.5 billion. Analysts were expecting Merck & Co., Inc. (NYSE:MRK) to post earnings of $1.53 per share on revenue of $13.156 billion.

Merck & Co., Inc. (NYSE:MRK) also released its segment-wise sales performance. Revenue from its pharmaceutical unit jumped 23 percent on a year-over-year basis to $12 billion. In comparison, revenue from the animal health segment rose 8 percent versus last year to $1.3 billion.

Looking forward, Merck & Co., Inc. (NYSE:MRK) expects adjusted earnings of $7.12 – $7.27 per share and revenue of $56.1 – $57.6 billion for 2022. This compares to the consensus forecast of $7.30 per share for earnings and $56.7 billion for revenue.

Speaking on the results, CEO Robert Davis said in a statement:

“We enter 2022 with strong momentum and are moving with speed to bring forward innovations that address critical unmet needs and contribute to global health. This remains at the core of our strategy, and why we are focused on benefitting the patients we serve, and in turn creating long-term value for our shareholders.”

2. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 78

Shares of Snap Inc. (NYSE:SNAP) skyrocketed nearly 60 percent on massive volume on Friday, February 4, 2022, after surprising investors with solid profit and sales for the fourth quarter and an upbeat outlook.

Snap Inc. (NYSE:SNAP) earned 22 cents per share on an adjusted basis, crushing expectations of 10 cents per share. Revenue for the quarter climbed 42 percent on a year-over-year basis to $1.3 billion, topping estimates of $1.2 billion.

Among other updates, Snap Inc. (NYSE:SNAP) said that its daily active users on Snapchat jumped 20 percent versus last year to 319 million. In addition, the average revenue per user for the quarter increased to $4.06 versus expectations of $3.79.

Looking forward, Snap Inc. (NYSE:SNAP) expects revenue in the range of $1.03 – $1.08 billion for the current quarter, better than analysts’ average estimate of $1.01 billion. Moreover, daily active users for the same period are expected to come between 328 – 330 million versus the consensus forecast of 327.8 million.

Discussing the results, CEO Evan Spiegel said:

“2021 was an exciting year for Snap and we made significant progress growing our business and serving our global community. The strength of our core business has enabled us to accelerate our investments in augmented reality, transforming the way that the Snapchat community experiences the world through our camera.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 78

Shares of Amazon.com, Inc. (NASDAQ:AMZN) climbed over 13 percent on Friday, February 4, 2022, despite its mixed financial results for the fourth quarter. The company reported adjusted earnings of $5.80 per share, surpassing expectations of $3.57 per share.

On the downside, Amazon.com, Inc. (NASDAQ:AMZN) posted revenue of $137.4 billion, up 9 percent versus last year but below analysts’ average estimate of $137.6 billion. Revenue from its flagship segment, Amazon Web Services, jumped 40 percent to $17.8 billion.

Moving forward, Amazon.com, Inc. (NASDAQ:AMZN) plans to raise the annual pricing of its Prime subscription from $119 to $139. The updated prices will be applicable from February 18 for new members and after March 25 for existing members.

Amazon.com, Inc. (NASDAQ:AMZN) also issued its sales guidance for the current quarter. It expects revenue of $112 – $117 billion for the first quarter, below the consensus forecast of $120 billion.

Commenting on the quarter, CEO Andy Jassy said in a statement:

“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic.”

You can also take a peek at 15 Worst Stock Picks of Cathie Wood and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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