Caught between a rock and a hard place due to the Brexit decision in June, the Bank of England announced today that it will cut interest rates and expand its stimulus measures to bolster the British economy. Despite the news, all three indexes are moderately lower as traders take profits off the table.
In this article, we’ll take a closer look at five stocks that are trending today due to their latest earnings releases: SeaWorld Entertainment Inc (NYSE:SEAS), Stratasys, Ltd. (NASDAQ:SSYS), Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), InterOil Corporation (USA) (NYSE:IOC), and Gogo Inc (NASDAQ:GOGO). In addition to discussing the results, we’ll check out SEC filings to see how the world’s leading hedge funds are positioned in these stocks.
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
SeaWorld Sinking Due to Weak Guidance
SeaWorld Entertainment Inc (NYSE:SEAS) earned $0.21 per share on revenue of $371.14 million in the second quarter, meeting profit estimates but missing the top-line consensus target by $3.69 million. Sales fell by 5.2% year-over-year as attendance fell due to a tropical storm and softness in the Orlando market. Due to lower demand, management now sees full year adjusted EBITDA coming in between $310 million and $340 million. Investors didn’t like the lower guidance, and SeaWorld Entertainment Inc (NYSE:SEAS) shares are down by 14% in morning trading because of it. Of the 766 actively-reporting funds that we track in Insider Monkey’s database, 20 were long SeaWorld Entertainment Inc (NYSE:SEAS) at the end of the first quarter.
Stratasys Reports Mixed Results
Stratasys, Ltd. (NASDAQ:SSYS) is off by around 1.5% today after reporting weak top-line numbers. Although its earnings beat estimates by $0.06 per share with EPS of $0.12, the company’s top-line missed by $3.72 million and fell 5.6% year-over-year to come in at $172.07 million. Non-GAAP EBITDA was $19.5 million while cash from operations was $6.9 million. Management reiterated its revenue guidance of $700 million-to-$730 million and adjusted net income of $0.17-to-$0.43 per share for the fiscal year ending December 31, 2016. 18 funds in our system were long Stratasys, Ltd. (NASDAQ:SSYS) at the end of March, up by one from the end of the previous quarter.
On the next page we dig into the latest results out of Teva Pharmaceutical Industries, InterOil Corporation, and Gogo Inc.