How Investors Reacted to The Latest Earnings Reports of These Companies

Most investors are smiling today, as the US stock market continues its rally, with the Dow setting a new intraday high. Oil prices are also surging after the EIA reported a decline in inventories by 2.3 million barrels. With the earnings season picking up steam, let’s take a look at five companies that reported their second quarter results this morning and how investors reacted to the numbers.

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).

Abbott Laboratories (NYSE:ABT) is up this morning, having managed to surpass analysts’ estimates for both revenue and earnings. The company reported $5.33 billion in revenue, up by 3% year-over-year, and adjusted earnings of $0.55 per share, topping projections of $0.53 per share on the back of $5.26 billion in revenue. Abbott Laboratories (NYSE:ABT) said its medical device unit registered the strongest performance during the quarter, followed by its endovascular business. The company also noted that political turmoil in Venezuela have had a significant impact on revenues from emerging markets. Among the hedge funds followed by Insider Monkey, 42 of them were invested in Abbott Laboratories (NYSE:ABT) at the end of the first quarter, up from 39 a quarter before.

Stock Soaring On Earnings Beat

Amphenol Corporation (NYSE:APH) shareholders are all smiles this morning, as shares are trending higher following the release of the earnings report. For the second quarter, the company posted a net income of $206.5 million or $0.65 per share, beating estimates of $0.63 per share. Revenues came in at $1.55 billion, while analysts were looking for $1.52 billion. Amphenol Corporation (NYSE:APH) said it expects third quarter revenue to range between $1.54 billion to $1.58 billion, with analysts having estimated revenues of $1.58 billion. The company has a market cap of $18 billion and pays an annual dividend of $0.55 per share, providing investors with a 0.93% yield. Hedge fund sentiment towards Amphenol Corporation (NYSE:APH) was unchanged during the first three months of 2016, with 16 of the funds in our database having reported a long position as of the end of March.

Head to the next page to read about three other earnings reports and how investors are trading the news.

Shares of BankUnited (NYSE:BKU) are down by more than 7%, despite better-than-expected financial results for the second quarter. The banking company reported a net profit of $56.7 million or $0.52 per share, marginally ahead of analysts’ estimates of $0.51 per share. BankUnited also registered a 4% increase in revenue to $243.2 million. BankUnited (NYSE:BKU) is based in Miami Lakes, Florida and managed 98 branches located in 15 Florida counties, and six banking centers  in New York. The company has a market cap of $3.14 billion and the stock is currently trading at a trailing Price to Earnings (P/E) ratio of 12, significantly lower than the industry average of 27. At the end of March, 15 of the funds followed by Insider Monkey had BankUnited (NYSE:BKU) in their equity portfolios, down from 17 a quarter before. Together, these funds held roughly 5.6% of the company’s common stock.

Not Out Of The Woods Yet

Halliburton Company (NYSE:HAL) shares are slightly lower after the provider of oilfield services posted better-than-expected financial results for the 2016 second quarter. Although revenue fell by 35% year-over-year to $3.84 billion, it still surpassed analysts’ expectations of $3.75 billion. Halliburton Company (NYSE:HAL) also posted an adjusted loss of $0.14 per share, while the consensus among analysts was a loss of $0.19 per share. “Our second quarter results showed resilience in the face of another challenging quarter marked by lower activity levels and continued pricing pressure around the globe,” commented Dave Lesar, CEO of Halliburton. Hedge fund interest in Halliburton Company (NYSE:HAL) ticked up during the first quarter, with 54 long positions registered at the end of March, which represents 7% of the funds tracked by Insider Monkey.

Lower Guidance

Shares of Polaris Industries Inc. (NYSE:PII) are up by 8.8% this morning on results that topped the forecasts. The manufacturer of recreational vehicles posted a profit of $71.2 million or $1.09 per share on the back of $1.13 billion in revenues, above analysts’ projections of $1.11 billion in revenue and earnings of $1.07 per share. It wasn’t all good news, however. Polaris Industries Inc. (NYSE:PII) has cut full-year guidance and is now expecting earnings to range between $6 and $6.30 per share, down from previous estimates of $6.20 to $6.80 per share. The hedge fund sentiment towards Polaris Industries Inc. (NYSE:PII) took a turn for the worse during the first three months, as the number of long positions among the funds we follow fell to 17 from 20 registered at the end of December.

Disclosure: none.