Earnings Wrap: Transocean (RIG), XPO Logistics (XPO), Exelixis (EXEL), 2 More

All three index futures are pointing north in pre-market trading as the Bank of England just announced that it would cut interest rates for the first time in seven years, to 0.25 basis points. Investors are also digesting yesterday’s ADP Employment Report, which showed 179,000 private jobs were created in July, topping estimates of 170,000.

Among the stocks that are on investors’ radar this morning are Continental Resources, Inc. (NYSE:CLR), Sangamo Biosciences, Inc. (NASDAQ:SGMO), Transocean LTD (NYSE:RIG), Exelixis, Inc. (NASDAQ:EXEL), and XPO Logistics Inc (NYSE:XPO), all of which have reported their latest quarterly results since yesterday’s market close. Let’s find out these companies performed and analyze hedge fund sentiment towards them.

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Continental Resources Posts Unexpectedly High Loss

Continental Resources, Inc. (NYSE:CLR)’s stock is 1% in the red this morning after the company posted larger than expected second quarter losses, mainly due to the slump in crude prices. The Oklahoma-based oil and gas producer’s adjusted loss in the quarter was $0.18 per share, worse than the estimated loss of $0.17, while revenue of $451.21 million was well behind the consensus estimate of $554.79 million. Production also plummeted by 3% to 219,323 barrels of oil equivalent (BOE) per day. However, the company increased its estimated production for the full year to 210,000-to-220,000 BOE per day, a 5,000 BOE per day rise from its previous guidance. Continental Resources CEO Harold Hamm said that the performance achieved by the Bakken, SCOOP and STACK assets of the company was exceptional during the quarter, and that the company is on track to slash its long-term debt through an agreement to sell a second non-strategic asset for $281 million. A total of 50 hedge funds in our database were long Continental Resources, Inc. (NYSE:CLR) at the end of the first quarter, up from 34 funds a quarter earlier.

Sangamo Biosciences Misses Estimates

Sangamo Biosciences, Inc. (NASDAQ:SGMO) is 22% in the red in pre-market trading after the company posted a second quarter net loss of $26.6 million, or $0.38 per share, worse than the consensus forecast of a loss of $0.24 per share. Revenue of $3.7 million also fell well short of the estimated $5.38 million. The California-based biopharmaceutical company expects $12 million-to-$17 million revenue for the full year. In a statement, Sangamo said that a big chunk of its quarterly revenue was generated due to agreements and research collaborations with Shire PLC (ADR) (NASDAQ:SHPG) and Biogen Idec Inc (NASDAQ:BIIB). The decrease in collaboration agreement revenue was a result of the company’s amendment to its license agreement with Shire in the third quarter of 2015, which returned the rights to Sangamo’s hemophilia treatments. At the end of March, 20 funds tracked by Insider Monkey were long Sangamo Biosciences, Inc. (NASDAQ:SGMO).

On the next page we’ll discuss the results issued by Transocean, Exelixis, and XPO Logistics.

Transocean Registers Surprise Profit

Transocean LTD (NYSE:RIG) shares have gained 1.4% in pre-market trading today after the company surprised analysts by posting a second quarter profit of $0.17, well ahead of the expected loss of $0.01 per share. Revenue in the quarter dropped to $943 million from $1.88 billion a year earlier, but topped analysts’ target of $918.58 million. The Switzerland-based offshore driller’s CEO, Jeremy Thigpen, said in a statement that the company continues to streamline its operations to tackle the industry headwinds caused by depressed crude prices. Joshua Packwood and Schuster Tanger’s Radix Partners was one of 39 hedge funds in our database that were bullish on Transocean LTD (NYSE:RIG) heading into the second quarter.

Exelixis Beats Estimates

Exelixis, Inc. (NASDAQ:EXEL)’s stock is making a bold move today, gaining nearly 7% in the pre-market hours after the company posted better than expected second quarter results. The genomics-based drug discovery company posted a loss of $0.16 per share, above the forecasts of a $0.27 per share loss, while revenue of $36.3 million more than doubled the consensus estimate of $17.96 million. Exelixis expects operating expenses in the range of $250 million-to-$270 million for the full year. Exelixis CEO Michael M. Morrissey said in a statement that his team worked “tirelessly” to bring forward its kidney cancer treatment Cabometyx, and that the company is encouraged by the initial response and developments. A Phase II trial of the drug recently achieved its primary endpoint, as significant improvement was seen in progression-free survival rates in patients with previously untreated advanced renal cell carcinoma. Kenneth Tropin’s Graham Capital Management owns approximately 13.21 million shares of Exelixis, Inc. (NASDAQ:EXEL) as of the end of the first quarter.

XPO Logistics Posts Profit

XPO Logistics Inc (NYSE:XPO)’s shares have skyrocketed by more than 11% in the early morning hours after the company posted a quarterly profit for the first time in about four years, thanks to several recent acquisitions. The Connecticut-based logistics company earned $0.42 per share in the second quarter, trouncing the consensus estimate of $0.20. However, revenue of $3.68 billion fell short of the estimated $3.81 billion. XPO Logistics’ Brad Jacobs said that the company experienced a “blowout quarter”, and reached a positive inflection point in its business. As of the end of the first quarter, 22 funds in our database held stakes in XPO Logistics Inc (NYSE:XPO), down from 34 funds a quarter earlier.

Disclosure: None