In this article, we will discuss the 5 companies that just raised their guidance after the quarter ending on June 30, 2022. To read the detailed analysis and outlook for 2022, you can go directly to These 10 Companies Upped Guidance Despite Global Economic Headwinds.
5. Prologis, Inc. (NYSE:PLD)
Market Cap as of July 21: $91.995 billion
Prologis, Inc. (NYSE:PLD) is a California-based REIT, operating in 19 countries across 4 continents. The company focuses on warehouses located close to high urban areas.
For the second quarter of 2022, Prologis, Inc. (NYSE:PLD) reported an FFO per share of $1.11, mainly in line with the estimates, and 10% above the same quarter in the previous year. The rental revenue of $1.09 billion exceeded the estimates by $2.39 million. Furthermore, the total revenue of $1.25 billion was approximately $100 million more compared to the same quarter of 2021. At the end of the second quarter, Prologis, Inc. (NYSE:PLD) had $437.5 million of cash and cash equivalents, compared to $1.9 billion in Q1. Including the credit facilities and cash, the company’s liquidity added up to $5.2 billion.
Prologis, Inc. (NYSE:PLD) raised its FY2022 FFO guidance from $5.14 to $5.18 per share from the prior guidance of $5.10-$5.16. Previously, the forecast for the midpoint of average occupancy was 97.12%, which is now 97.50%. Same-store net operating income was previously estimated to be between 7.25% to 8.00%, which is now projected to be between 8.25% and 8.75%.
4. Elevance Health Inc. (NYSE:ELV)
Market Cap as of July 21: $109.883 billion
Through its subsidiaries, Elevance Health Inc. (NYSE:ELV) provides medical, digital, pharmacy, behavioural, clinical, and care solutions. The company has approximately 118 million customers and employs more than 98,000 people. Elevance Health Inc. (NYSE:ELV) was known as Anthem Inc. till June 2022.
For the financial quarter ending June 30, Elevance Health Inc. (NYSE:ELV) reported an adjusted EPS of $8.04, compared to the estimated $7.74. The revenues were $38.48 billion, outperforming the estimates by $429.21 million. The operating cash flow of the company was recorded at $2.5 billion, surging by $769 million from the prior-year quarter. Medical enrollment increased to 47.1 million members, representing a 6.1% YoY growth. Furthermore, the company announced a dividend of $1.28 for Q3 2022 to be paid out by September 23 to the shareholders of record on September 9.
Elevance Health Inc. (NYSE:ELV) raised its guidance for FY 2022 adjusted EPS to $28.70 compared to the previous guidance of $28.40.
Here is what Baron Funds said about Elevance Health Inc. (NYSE:ELV) in its Q1 2022 investor letter:
“We initiated a position in Anthem, Inc. (NYSE:ANTM) (which recently announced plans to change its name to Elevance Health), one of the largest health benefits companies in the U.S. in terms of medical membership, serving more than 45 million medical members through its affiliated health plans. Anthem serves its members through the Blue Cross and Blue Shield brand name. Similar to many managed care peers, Anthem generates its revenue from the U.S. (which avoids risks related to foreign country exposure) and has pricing power (which enables it to more than offset inflation). More specific to Anthem, the company has multiple growth drivers, including its Medicare Advantage business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Over the long term, management targets 12% to 15% annual EPS growth. We think Anthem is a high-quality growth company trading at a reasonable valuation.”
3. Abbott Laboratories (NYSE:ABT)
Market Cap as of July 21: $191.833 billion
Abbott Laboratories (NYSE:ABT) is an American multinational healthcare company. The company has four basic segments – established pharmaceutical products, diagnostic products, nutritional products, and medical devices.
Abbott Laboratories (NYSE:ABT) announced its second-quarter 2022 results on July 20. The reported EPS of $1.43 topped the analyst estimates by 25.29%, representing a 22.2% YoY growth. The company generated a revenue of $11.26 billion, outperforming the estimates of $10.40 billion by $856.54 million. The revenues for the quarter showed 10.1% YoY growth. Moreover, organic sales increased by 14.3% YoY.
Out of the four segments of Abbott Laboratories (NYSE:ABT), diagnostic products reported the highest organic growth at 36.9%. Diabetes care products’ sales increased by 19.4% on a YoY basis, followed by established pharmaceuticals at 9.2%, and medical devices’ organic sales improved by 7.5%. Nutrition products sales went down by 4.5% on an organic basis. In addition, Abbott Laboratories (NYSE:ABT)’s gross profit represented a 19.9% YoY growth to $6.32 billion, while the gross margins surged to 56.2%.
Abbott Laboratories (NYSE:ABT) raised its 2022 EPS guidance after the Q2 reports. The full-year adjusted earnings from continuing operations are expected to be at least $4.90. Priorly, it was expected to be at least $4.70.
Here is what Diamond Hill Capital had to say about Abbott Laboratories (NYSE:ABT) in its first-quarter 2021 investor letter:
“Abbott Labs announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Market Cap as of July 21: $451.234 billion
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the world’s most valuable semiconductor companies, headquartered in Hsinchu Science Park, Taiwan. The company operates globally and employs more than 54,000 people.
For the second quarter, analysts estimated an EPS of $1.50 for Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The company surpassed the estimates after posting an EPS of $1.55. Furthermore, the reported revenue of $17.83 billion outperformed the estimates by 1.87%. The net sales rose by 8.8% QoQ and 43.5% on a YoY basis.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s net profit climbed by 76% to $7.95 billion and the company also raised its Q3 and full-year revenue guidance despite the lags in chip demand. The company expects its FY 2022 revenue to grow by 35% compared to the prior year. Previously, the growth was expected to be around 30%. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects its Q3 revenues to be around $19.8 billion to $20.6 billion, representing a 33% surge from the same quarter in the previous year.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of the companies Baron Funds discussed in its Q1 2022 investor letter. Here is what the firm said:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Ltd. detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”
1. UnitedHealth Group Incorporated (NYSE:UNH)
Market Cap as of July 21: $482.483 billion
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational diversified healthcare and insurance company. In 2022, the company ranks 5th on the Fortune 500 list.
For the second quarter of 2022, UnitedHealth Group Incorporated (NYSE:UNH) reported an EPS of $5.57, exceeding the estimates by 36 cents and beating the revenue estimates of $79.68 billion by $652.11 million. Moreover, the company’s revenue rose by 12.6% on a YoY basis. The main growth driver for the company was its Optum sector which showed an 18% YoY growth to $45.1 billion.
UnitedHealth Group Incorporated (NYSE:UNH) raised its adjusted earnings guidance for the full-year 2022. The company expects an EPS of $21.40 to $21.90, which was previously expected to be $21.20 to $21.70.
Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter. Here is what it said:
“UnitedHealth Group Incorporated is a leading diversified health and well- being company whose divisions include insurance arm UnitedHealthcare and Optum, which offers care delivery and other services. Shares increased on a fourth quarter beat and a reaffirmation of what is likely conservative guidance for 2022. We believe UnitedHealth leads the healthcare industry in innovation and execution, as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
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