5 Stocks That Beat Profit Expectations

In this article, we discuss the 5 stocks that beat profit expectations. If you want to read our detailed analysis of these companies, go directly to the 11 Stocks That Beat Profit Expectations. 

5. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 38

Shares of AutoZone, Inc. (NYSE:AZO) rose nearly six percent on Tuesday, May 24, 2022, after announcing better-than-expected financial results for its fiscal third quarter. The automotive replacement parts retailer reported earnings of $29.03 per share, compared to $26.48 per share in the year-ago period.

Revenue came in at $3.87 billion, up 5.9 percent over the comparable quarter of 2021. Analysts were expecting AutoZone, Inc. (NYSE:AZO) to earn $26.05 per share on revenue of $3.71 billion.

Among other updates, AutoZone, Inc. (NYSE:AZO) reported that it opened 24 new stores in the quarter, bringing the total count to 6,846. Moreover, it repurchased $900 million worth of its common stock during the three months ended May 7, 2022.

Speaking on the results, CEO Bill Rhodes said:

“We are very proud to report solid same store sales growth on top of last year’s remarkable 28.9%. Both our retail and commercial sales performance exceeded our expectations this quarter. While our commercial sales growth accelerated to 26.0%, our retail sales also remained healthy considering the tough comparison from a year ago.”

4. HEICO Corporation (NYSE:HEI)

Number of Hedge Fund Holders: 39

Shares of HEICO Corporation (NYSE:HEI) closed higher on Tuesday, May 24, 2022, after beating profit and sales expectations for its fiscal second quarter. The company attributed the latest performance to the recovery in the commercial aerospace market and solid income from its flight support group.

HEICO Corporation (NYSE:HEI) reported earnings of 62 cents per share, up from 51 cents per share in the same period last year. Revenue for the quarter rallied 15 percent on a year-over-year basis to $538.8 million. The results exceeded the consensus of 61 cents per share for earnings and $531.43 million for revenue.

HEICO Corporation (NYSE:HEI) also released its segment-wise sales results. Revenue from the flight support group climbed 33 percent to $306.3 million in the quarter. On the downside, revenue from the electronic technologies group decreased to $237.4 million, from $243.1 million in the year-ago period.

Discussing the results, CEO Laurans Mendelson said:

“As we look ahead to the remainder of fiscal 2022, we expect global commercial air travel to continue growing despite the potential for additional COVID-19 global pandemic (“the Pandemic”) variants. We remain cautiously optimistic that the ongoing worldwide rollout of Pandemic vaccines, including boosters, will continue to positively influence global commercial air travel and benefit the markets we serve.”

3. Zoom Video Communications, Inc. (NASDAQ:ZM)

Number of Hedge Fund Holders: 43

Zoom Video Communications, Inc. (NASDAQ:ZM) recently announced better-than-expected financial results for its fiscal first quarter and an upbeat outlook for the current quarter. As a result, its shares rose nearly 6 percent on Tuesday, May 24, 2022.

The communications technology company earned $1.03 per share on an adjusted basis, compared to $1.32 per share in the same period of the prior year. In addition, revenue for the quarter jumped 12 percent on a year-over-year basis to $1.074 billion. Analysts were expecting Zoom Video Communications, Inc. (NASDAQ:ZM) to post earnings of 87 cents per share on revenue of $1.07 billion.

Looking forward, Zoom Video Communications, Inc. (NASDAQ:ZM) guided for adjusted earnings in the range of 90 – 92 cents per share and revenue between $1.115 – $1.12 billion for its fiscal second quarter. The guidance is better than the consensus of 88 cents per share for earnings and $1.11 billion for revenue.

2. Agilent Technologies, Inc. (NYSE:A)

Number of Hedge Fund Holders: 43

Shares of Agilent Technologies, Inc. (NYSE:A) turned green in the pre-market trading session on Wednesday, May 25, 2022, after posting its fiscal second-quarter profit and sales above expectations.

Agilent Technologies, Inc. (NYSE:A) reported adjusted earnings of $1.13 per share, topping estimates of $1.07 per share. The quarterly revenue of $1.61 billion also exceeded analysts’ average estimate of $1.55 billion.

For its fiscal year 2022, Agilent Technologies, Inc. (NYSE:A) raised its adjusted earnings outlook to a range of $4.86 – $4.93 per share, from its previous projection of $4.80 – $4.90 per share.

Commenting on the quarter, CEO Mike McMullen said:

“We delivered 7% core revenue growth, exceeded our EPS expectations and continued to build order backlog, all despite macro challenges including temporary COVID-19 shutdowns in China. Our momentum continues and we have again raised our full-year outlook.”

1. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 82

Shares of Intuit Inc. (NASDAQ:INTU) rose nearly three percent in the pre-market trading session on Wednesday, May 25, 2022, following an impressive financial performance for its fiscal third quarter.

Intuit Inc. (NASDAQ:INTU) reported adjusted earnings of $7.65 per share, up from $6.07 per share in the year-ago period. Revenue for the quarter climbed 35 percent versus last year to $5.63 billion. The results were better than analysts’ average estimate of $7.58 per share for earnings and $5.51 billion for revenue.

Intuit Inc. (NASDAQ:INTU) also released its financial outlook for the full year. The business software company expects adjusted earnings in the range of $11.68 – $11.74 per share and revenue between $12.63 – $12.67 billion. Analysts were looking for earnings of $11.66 per share and revenue of $12.32 billion for the same period.

Speaking on the results, CEO Sasan Goodarzi said:

“We are confident in our strategy and execution across the company as we become the global AI-driven expert platform powering the prosperity of consumers and small businesses. We had another strong quarter, and we are raising Intuit’s revenue and operating income guidance for fiscal year 2022.”

You can also take a peek at 10 Most Anticipated IPOs of 2022 and 10 Favorite Stocks of Dan Loeb’s Third Point.

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