The major US indexes opened in the red on Wednesday as the yen continues to grow against the dollar and following ADP data that showed an addition of 156,000 jobs in the private sector in April, below the expectations of 196,000. The Sohn Next Wave Conference takes place in New York today and we are bringing you updates on the spot (see two picks from the conference). Meanwhile, several stocks are trending on the back of their financial results and in this article we are going to take a look at the earnings posted by Time Warner Inc (NYSE:TWX), Priceline Group Inc (NASDAQ:PCLN), Energizer Holdings Inc (NYSE:ENR), Avis Budget Group Inc. (NASDAQ:CAR), and Etsy Inc (NASDAQ:ETSY).
In addition, we are going to assess the smart money sentiment surrounding these five stocks, based on the data we collect by analyzing equity portfolios of nearly 800 hedge funds and other institutional investors. We use this data to identify the best small-cap ideas that these funds are collectively bullish on and use it as part of our small-cap strategy (see more details here).
Let’s start with Time Warner Inc (NYSE:TWX), which posted first-quarter adjusted EPS of $1.49, significantly higher than the expectations of $1.30, while the revenue of $7.31 billion managed to only slightly beat the consensus estimate of $7.30 billion. The net income of $1.21 billion was 25% higher on the year and the revenue went up by 2.5% on the year as CNN saw higher rankings amid the presidential election and HBO’s revenue growth was helped by the popularity of the shows such as “Game of Thrones”. On the back of the results, Time Warner Inc (NYSE:TWX)’s stock has appreciated by nearly 3% in the first hours of trading on Wednesday. Amid the funds we track, 72 reported long positions that amassed almost 7% of Time Warner Inc (NYSE:TWX)’s outstanding shares heading into 2016.
On the other hand, Priceline Group Inc (NASDAQ:PCLN)‘s stock is close to 10% in the red, even though the company posted adjusted EPS of $10.54 for the last quarter, better than analysts’ forecast of $9.65. The revenue of $2.15 billion, was also above estimates of $2.12 billion. However, the market was disappointed to see that Priceline Group Inc (NASDAQ:PCLN) anticipates revenue growth in the range of 7% and 14% on the year and non-GAAP EPS between $11.60 and $12.50 for the current quarter, which would be below the current expectations. A total of 85 funds from our database held 11.40% of Priceline Group Inc (NASDAQ:PCLN)’s outstanding stock at the end of 2015, including ‘Tiger Cubs’ Stephen Mandel’s Lone Pine Capital and Chase Coleman‘s Tiger Global Management.
On the next page, we are going to take a look at the financial results posted by Energizer Holdings, Avis Budget Group and Etsy.