A Closer Look at Five Stocks in Spotlight Following Financial Reports

The US stock market inched up higher on Tuesday and the S&P 500 and NASDAQ reached new intraday highs.

Five stocks are in the spotlight following the release of their latest financial results, including DaVita HealthCare Partners Inc (NYSE:DVA), Colony Financial Inc (NYSE:CLNY), Brookdale Senior Living, Inc. (NYSE:BKD), Callon Petroleum Company (NYSE:CPE), and Clovis Oncology Inc (NASDAQ:CLVS). Let’s take a closer look at how the companies in question performed last quarter and assess what the investors tracked by Insider Monkey think about the companies in question.

At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).

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DaVita HealthCare Partners Inc (NYSE:DVA)’s stock has lost over 3% so far on Tuesday after the company reported revenue of $3.72 billion for the second quarter, topping analysts’ estimates of $3.67 billion, while adjusted EPS of $1.01 was better than the expected $0.98. However, DaVita slashed its full-year consolidated operating income guidance to the range of $1.785 billion to $1.875 billion from earlier forecasts of $1.800 billion to $1.950 billion. A total of 37 funds from our database held shares of DaVita HealthCare Partners Inc (NYSE:DVA) with a total value of $4.30 billion at the end of the first quarter.

Shares of Colony Capital Inc (NYSE:CLNY) have inched down after the company posted its results for the second quarter. While its revenue  of $270.64 million managed to beat the consensus estimate of $175.44 million, its EPS of $0.36 missed the expectations by $0.08. The company also reported “record” core funds from operations (CFFO) of $0.75 per share. Among the funds we track, 31 funds held shares of Colony Capital Inc (NYSE:CLNY) at the end of March.

On the next page, we are going to discuss the results reported by  Brookdale Senior Living, Inc. (NYSE:BKD), Callon Petroleum Company (NYSE:CPE), and Clovis Oncology Inc (NASDAQ:CLVS).

Brookdale Senior Living, Inc. (NYSE:BKD) is in spotlight after the company posted a net loss of $0.19 per share for the second quarter, versus estimates of a loss of $0.12. On the other hand, its revenue stood at $1.26 billion and topped the estimates by $30 million. Adjusted CFFO was $123.4 million for the second quarter, an increase of 12.2% from the second quarter of 2015. The company re-affirmed its full year CFFO guidance in the range of $455 million to $475 million, while EBITDA is expected to be in range of $870 to $890 million.  The number of funds from our database with positions in Brookdale Senior Living, Inc. (NYSE:BKD) fell to 45 from 57 during the first quarter of 2016.

Callon Petroleum Company (NYSE:CPE)’s stock has gained over 4% on the back of the company reporting its second-quarter results. The company posted revenue of $45.15 million, below the consensus estimate of $$47.75 million, but adjusted EPS of $0.05 topped the expectations by $0.01. Callon also reported an increase of 8% on the quarter in its net daily production to 13,451 barrels. At the end of March, 29 hedge funds tracked by us had long positions in Callon Petroleum Company (NYSE:CPE).

Finally, Clovis Oncology Inc (NASDAQ:CLVS)’s stock is nearly 7% in the green after the biopharmaceutical company reported a net loss of $2.07 per share for the second quarter, versus expectations of a loss of $2.10. The company did not have any revenue and said it had $378.5 million in cash, cash equivalents and available-for-sale securities at the end of June. “We are pleased to have completed the submission of our NDA for rucaparib in the treatment of advanced ovarian cancer in late June. […] We continue to focus on our broader clinical development program for rucaparib, and are actively preparing for a potential U.S. launch of rucaparib,” Patrick J. Mahaffy, President and CEO of Clovis Oncology was quoted as saying in a statement. Heading into the second quarter, 24 funds tracked by Insider Monkey were bullish on Clovis Oncology Inc (NASDAQ:CLVS).

Disclosure: None