10 Earnings Reports Everyone is Talking About

In this article, we will take a look at the 10 earnings reports everyone is talking about.

We have entered the second week of the third-quarter earnings season. Companies from industrials, consumer defensive, and entertainment sectors recently posted their earnings reports.

Kansas City Southern (NYSE:KSU), The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Netflix, Inc. (NASDAQ:NFLX), were among the notable stocks that released their financial results earlier this week.

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Most of these stocks beat profit expectations for the third quarter. To review the detailed performance of these stocks, let’s start our list of 10 earnings reports everyone is talking about.

Earnings Reports Everyone is Talking About

10. Halliburton Company (NYSE:HAL)

Number of Hedge Fund Holders: 29

Halliburton Company (NYSE:HAL) recently announced mixed financial results for the third quarter. The oil field service company reported adjusted earnings of 28 cents per share, significantly higher than 11 cents per share in the comparable period of 2020.

Revenue for the quarter jumped 29.7 percent on a year-over-year basis to $3.860 billion. Analysts were expecting Halliburton Company (NYSE:HAL) to post earnings of 28 cents per share on revenue of $3.91 billion.

Looking at the sequential performance of flagship segments, completion and production revenue in the third quarter rose four percent to $2.1 billion, while drilling and evaluation revenue also increased 4 percent to $1.7 billion.

If we see the region-wise sales performance, revenue from the international markets rose five percent to $2.2 billion versus the prior quarter. The surge was mainly driven by higher activity in Latin America and increased construction services in the Eastern Hemisphere. In comparison, North America revenue rose 3 percent to $1.6 billion versus the second quarter.

Speaking on the results, CEO Jeff Miller said in a statement:

“Both operating divisions experienced revenue growth in the international and North America Land markets. Our Completion and Production division delivered solid mid-teens margins, and our Drilling and Evaluation division margins maintained their steady momentum.”

Like Halliburton Company (NYSE:HAL), analysts are also closely watching Kansas City Southern (NYSE:KSU), The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Netflix, Inc. (NASDAQ:NFLX) after their earnings reports.

9. Dover Corporation (NYSE:DOV)

Number of Hedge Fund Holders: 29

Dover Corporation (NYSE:DOV) announced better-than-expected financial results for the third quarter on Tuesday, 19 October 2021. The diversified global manufacturer earned $1.98 per share on an adjusted basis, up from $1.60 per share in the same period of 2020.

Revenue surged 15.5 percent on a year-over-year basis to $2.018 billion. The results exceeded analysts’ average estimate of $1.86 per share for earnings and $2.01 billion for revenue.

Dover Corporation (NYSE:DOV) also raised its profit outlook for the full year. It expects adjusted earnings in the range of $7.45 – $7.50 per share, up from its previous forecast between $7.30 – $7.40 per share. The updated outlook is also better than the consensus forecast of $7.42 per share.

Discussing the results, CEO Richard J. Tobin said in a statement:

“Our results in the third quarter reflect continued robust demand and solid execution by our teams in an increasingly complex supply chain and labor environment.”

8. State Street Corporation (NYSE:STT)

Number of Hedge Fund Holders: 37

Shares of State Street Corporation (NYSE:STT) jumped to their highest price in more than three years after announcing solid results for the third quarter on Monday, 18 October 2021. The investment management company reported adjusted earnings of $2 per share, beating the consensus forecast of $1.92 per share.

Revenue came in at $2.99 billion, ahead of analysts’ average estimate of $2.96 billion. State Street Corporation (NYSE:STT) had reported earnings of $1.45 per share on revenue of $2.96 billion in the comparable period of 2020.

State Street Corporation (NYSE:STT) added that fee revenue in the quarter rose nine percent on a year-over-year basis, while net interest income inched up two percent to $0.5 billion. In addition, total expenses in the quarter increased one percent versus last year.

7. United Airlines Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 39

Shares of United Airlines Holdings, Inc. (NASDAQ:UAL) rose more than two percent in the pre-market trading on Wednesday, 20 October 2021, after posting narrower-than-expected loss for the third quarter.

The Chicago, Illinois-based airline reported an adjusted loss of $1.02 per share, significantly lower than a loss of $8.16 per share in the year-ago quarter. In addition, United Airlines Holdings, Inc. (NASDAQ:UAL) posted revenue of $7.8 billion, compared to $2.5 billion in the same period last year. Analysts, on average, were looking for a loss of $1.58 per share on revenue of $7.64 billion.

Looking forward, United Airlines Holdings, Inc. (NASDAQ:UAL) plans to boost its international capacity by 10 percent in the next year amid continued recovery in leisure and business travel.

Commenting on the quarter, CEO Scott Kirby said:

“From the return of business travel and the planned re-opening of Europe and early indications for opening in the Pacific, the headwinds we’ve faced are turning to tailwinds, and we believe that United is better positioned to lead the recovery than any airline in the world.”

Like United Airlines Holdings, Inc. (NASDAQ:UAL), Kansas City Southern (NYSE:KSU), The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Netflix, Inc. (NASDAQ:NFLX) also came in the limelight after posting their quarterly results.

6. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 46

Shares of Philip Morris International Inc. (NYSE:PM) fell nearly two percent on Tuesday, 19 October 2021, despite beating expectations for the third quarter. The cigarette and tobacco maker reported adjusted earnings of $1.58 per share, up 11.3 percent from $1.42 per share in the year-ago quarter. Analysts were looking for earnings of $1.56 per share.

Revenue for the quarter rose 9.1 percent on a year-over-year basis to $8.12 billion, beating the consensus forecast of $7.94 billion. In addition, total shipments in the quarter increased by 2.1 percent, helped by higher shipment volume of heated tobacco.

Philip Morris International Inc. (NYSE:PM) also issued its earnings guidance for the full year. The company expects adjusted earnings in the range of $6.01 – $6.06 per share, compared to the consensus forecast of $6.08 per share.

Commenting on the outlook, CEO Jacek Olczak said in a statement:

“Today, we are reaffirming our strong growth outlook for 2021, with an adjusted diluted EPS forecast toward the upper-half of our previous range and representing currency-neutral growth of 13% to 14%, despite ongoing tightness in device supplies due to the global shortage of semiconductors, which impacts our ability to fulfill consumer demand for IQOS.”

5. The Bank of New York Mellon Corporation (NYSE:BK)

Number of Hedge Fund Holders: 52

Shares of The Bank of New York Mellon Corporation (NYSE:BK) slightly moved up on Tuesday, 19 October 2021, after announcing better-than-expected financial results for the third quarter.

The provider of investment management services reported earnings of $1.04 per share, up from 98 cents per share in the comparable quarter of 2020. Revenue increased nearly five percent on a year-over-year basis to $4.04 billion. Analysts were expecting The Bank of New York Mellon Corporation (NYSE:BK) to report earnings of $1.01 per share on revenue of $3.95 billion.

On the downside, net interest revenue slipped to $641 million, compared to $703 million in the year-ago quarter. The drop was mainly attributed to weak interest rates. The Bank of New York Mellon Corporation (NYSE:BK) also reported that it repurchased 38.1 million shares of its common stock for $2 billion during the quarter.

Speaking on the results, CEO Todd Gibbons said:

“Our financial performance this quarter reflects healthy and broad-based organic growth across our businesses as well as a supportive global markets backdrop.”

4. Kansas City Southern (NYSE:KSU)

Number of Hedge Fund Holders: 61

Kansas City Southern (NYSE:KSU) recently announced mixed financial results for the third quarter. The railroad operator reported adjusted earnings of $2.02 per share for the three months ended 30 September 2021, missing the consensus forecast of $2.04 per share. The company blamed plant shutdowns and service interruptions for the weak profit.

Revenue for the quarter jumped 13 percent on a year-over-year basis to $744 million, just ahead of analysts’ average estimate of $722.4 million. Kansas City Southern (NYSE:KSU) had reported adjusted earnings of $1.96 per share on revenue of $659.6 in the comparable period of 2020.

CEO Patrick Ottensmeyer expressed his satisfaction with the results. Ottensmeyer said in a statement:

“We are encouraged that despite several commercial headwinds, our network is performing extremely well and we are delivering near record velocity and dwell. Underlying industrial demand is strong, and KCS has maintained resources to prioritize customer service as volumes return to the network. As certain supply chain disruptions are resolved and our revenue environment improves, our network will be well-positioned to handle incremental volume while continuing to provide premium service to our customers.”

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 68

Shares of The Procter & Gamble Company (NYSE:PG) slipped over one percent on Tuesday, 19 October 2021, after its fiscal first-quarter profit dropped versus last year. The consumer goods giant reported core earnings of $1.61 per share, down from $1.63 per share in the year-ago quarter.

In addition, The Procter & Gamble Company (NYSE:PG) posted revenue of $20.34 billion, translating to a surge of five percent on a year-over-year basis. The results were better than the consensus forecast of $1.59 per share for earnings and $19.84 billion for revenue.

If we look at the performance of key segments, revenue at both beauty and grooming segments increased 5 percent, while health care revenue jumped 8 percent versus last year.

The Procter & Gamble Company (NYSE:PG) also reaffirmed the financial outlook for its fiscal year 2022. It expects core earnings per share to grow in the range of 3 – 6 percent and revenue growth between 2 – 4 percent for the full year.

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Shares of Johnson & Johnson (NYSE:JNJ) rose more than two percent on Tuesday, 19 October 2021, after delivering impressive earnings for the third quarter and lifting its full-year guidance. The company’s adjusted earnings rose 18.2 percent on a year-over-year basis to $2.60 per share, crushing analysts’ average estimate of $2.35 per share.

Revenue for the quarter jumped 10.7 percent to $23.34 billion but missed the consensus forecast of $23.64 billion. If we look at the year-over-year performance of key segments, revenue from the consumer health segment rose 5.7 percent, revenue from the pharmaceutical unit jumped 13.8 percent, while revenue from the medical devices segment surged 7.6 percent.

Looking forward, Johnson & Johnson (NYSE:JNJ) expects adjusted earnings in the range of $9.77 – $9.82 per share for the full year, up from its previous outlook between $9.60 – $9.70 per share. The updated guidance is better than the consensus forecast of $9.71 per share.

Commenting on the quarter, CEO Alex Gorsky said:

“Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) recently announced better-than-expected financial results for the third quarter. However, the video-streaming giant warned that higher programming costs will hurt its operating margin in the fourth quarter.

The warning apparently sent Netflix, Inc. (NASDAQ:NFLX) shares down more than two percent in the pre-market trading session on Wednesday, 20 October, 2021.

For the third quarter, Netflix, Inc. (NASDAQ:NFLX) reported earnings of $3.19 per share, well above $1.74 per share in the same period last year. Revenue for the quarter came in at $7.48 billion, higher than $6.44 billion in the year-ago quarter. Analysts were expecting Netflix, Inc. (NASDAQ:NFLX) to report earnings of $2.57 per share on revenue of $7.48 billion.

In addition, Netflix, Inc. (NASDAQ:NFLX) announced that it added 4.4 million new subscribers in the quarter, crushing the consensus forecast of 3.78 million. Looking forward, the company expects to add 8.5 million new subscribers in the current quarter, just above analysts’ average estimate of 8.4 million.

On the downside, Netflix, Inc. (NASDAQ:NFLX) said that production of new content will weigh on its profitability in the fourth quarter. The company expects operating margin of about 6.5 percent in the current quarter, compared to 14 percent in the fourth quarter of 2020.

You can also take a peek at Top 10 SPACs to Buy According to Richard Gerson’s Falcon Edge Capital and 10 Best Oil Stocks To Buy According To Hedge Funds.

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Disclosure: None. 10 Earnings Reports Everyone is Talking About is originally published on Insider Monkey.