10 Key Quarterly Reports to Watch

In this article, we will take a look at the 10 key quarterly reports to watch.

Stocks from the consumer cyclical and industrial sectors, including NIKE, Inc. (NYSE:NKE), CarMax, Inc. (NYSE:KMX), Paychex, Inc. (NASDAQ:PAYX) and Cintas Corporation (NASDAQ:CTAS), recently released financial results for their respective quarters. Shares of NIKE and Paychex closed higher after beating expectations. However, both CarMax and Cintas dropped despite posting better-than-expected financial results.

In addition, several other companies, including BlackBerry Limited (NYSE:BB), AAR Corp. (NYSE:AIR) and General Mills, Inc. (NYSE:GIS), also came into the spotlight after posting their quarterly results.

Key Quarterly Reports to Watch

10. Cognyte Software Ltd. (NASDAQ:CGNT)

Number of Hedge Fund Holders: 20

Shares of Cognyte Software Ltd. (NASDAQ:CGNT) hit a new 52-week low of $14.96 on Wednesday, December 22, 2021, despite announcing better-than-expected profit and sales for its fiscal third quarter.

Cognyte Software Ltd. (NASDAQ:CGNT) reported adjusted earnings of 21 cents per share, down from 29 cents per share in the year-ago quarter. Revenue for the quarter rose 4.4 percent versus last year to $118.7 million. The results easily surpassed analysts’ average estimate of 10 cents per share for earnings and $114.830 million for revenue.

The company also updated its financial outlook for the full year. Cognyte Software Ltd. (NASDAQ:CGNT) expects earnings of 80 cents per share on revenue of $480 million for its FY 2022 ending January 31.

Speaking on the results, CEO of Cognyte Software Ltd. (NASDAQ:CGNT), Elad Sharon, said in a statement:

“During the quarter, we received many large deals, including multiple seven- and eight-digit deals, driven by our innovative security analytics platform. As we approach completing our first year as an independent company, I am pleased with our sequential revenue growth and the ongoing increase in gross margin.”

9. BlackBerry Limited (NYSE:BB)

Number of Hedge Fund Holders: 20

Shares of BlackBerry Limited (NYSE:BB) closed higher on Wednesday, December 22, 2021, after beating expectations for its fiscal third quarter. The Canadian cybersecurity company attributed the results to solid billings and strong sales growth in its IoT segment.

BlackBerry Limited (NYSE:BB) earnings were breakeven per share, compared to analysts’ average estimate for a loss of 7 cents per share. Revenue came in at $184 million, down from $218 million in the comparable period of 2020. Analysts were expecting the company to post revenue of $173.6 million.

Looking at the performance of its flagship businesses, IoT revenue in the quarter increased to $43 million from $32 million last year. In comparison, cybersecurity revenue came in at $128 million, compared to $130 million last year.

Like BlackBerry Limited (NYSE:BB), investors are also closely watching NIKE, Inc. (NYSE:NKE), CarMax, Inc. (NYSE:KMX), Paychex, Inc. (NASDAQ:PAYX) and Cintas Corporation (NASDAQ:CTAS), following their earnings reports.

8. AAR Corp. (NYSE:AIR)

Number of Hedge Fund Holders: 21

Shares of AAR Corp. (NYSE:AIR) recently rose to a one-month high despite missing profit and sales expectations for its fiscal second quarter. The Illinois-based aviation services provider earned 53 cents per share on an adjusted basis, compared to 31 cents per share in the year-ago quarter.

Revenue for the quarter rose eight percent versus last year to $437 million. Analysts were expecting AAR Corp. (NYSE:AIR) to post earnings of 54 cents per share on revenue of $449.7 million.

Discussing the results, CEO of AAR Corp. (NYSE:AIR), John Holmes, said:

“While the global recovery in commercial air travel continues to be uneven due to COVID-19 variants and associated travel restrictions, we continue to drive strong performance. We delivered our fifth straight quarter of adjusted operating margin improvement and are now exceeding pre-pandemic levels.”

7. MSC Industrial Direct Co., Inc. (NYSE:MSM)

Number of Hedge Fund Holders: 25

MSC Industrial Direct Co., Inc. (NYSE:MSM) is one of the leading providers of industrial equipment in the U.S. The company recently announced better-than-expected profit and sales for its fiscal first quarter, helped by solid top-line performance and effective cost cut measures.

New York-based MSC Industrial Direct Co., Inc. (NYSE:MSM) reported adjusted earnings of $1.25 per share, compared to $1.11 per share in the same period last year. Analysts were looking for earnings of $1.19 per share.

Revenue for the quarter rose 9.9 percent on a year-over-year basis to $848.5 million, ahead of the consensus forecast of $838.97 million. Gross margin in the quarter inched down to 41.6 percent from 41.9 percent in the year-ago quarter. Moving forward, MSC Industrial Direct Co., Inc. (NYSE:MSM) expects gross margin to recover in its fiscal second quarter.

Like MSC Industrial Direct Co., Inc. (NYSE:MSM), NIKE, Inc. (NYSE:NKE), CarMax, Inc. (NYSE:KMX), Paychex, Inc. (NASDAQ:PAYX) and Cintas Corporation (NASDAQ:CTAS) also came into the limelight after releasing their financial results.

6. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 32

Shares of General Mills, Inc. (NYSE:GIS) fell more than four percent on Tuesday, December 21, 2021, after announcing disappointing earnings for its fiscal second quarter. The increasing prices of raw materials, expensive transportation, and high labor costs affected its results.

The ongoing supply chain hurdles and lack of truck drivers in the U.S. have raised the operating costs for packaged food retailers like General Mills, Inc. (NYSE:GIS). To alleviate the impact of rising costs, General Mills increased the prices of its products. However, even the price hike couldn’t offset the impact of heightened inflation during the quarter.

General Mills, Inc. (NYSE:GIS) reported adjusted earnings of 99 cents per share for the three months ended November 28, missing analysts’ average estimate of $1.05 per share. On the bright side, revenue for the quarter rose six percent versus last year to $5 billion, beating expectations of $4.839 billion.

Looking forward, General Mills, Inc. (NYSE:GIS) raised its revenue outlook for the full year, citing solid demand for its food products. The company now expects its revenue to increase in the range of 4 – 5 percent versus its previous forecast of 1 – 3 percent growth.

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

“In the face of an unprecedented combination of input cost inflation and supply chain disruptions, we’re moving quickly to keep our trusted brands on store shelves for consumers while driving net price realization to protect our bottom line.”

5. FactSet Research Systems Inc. (NYSE:FDS)

Number of Hedge Fund Holders: 28

FactSet Research Systems Inc. (NYSE:FDS) recently came into the limelight after announcing better-than-expected profit and sales for its fiscal first quarter. The financial data and software company reported adjusted earnings of $3.25 per share, up 12.8 percent from the year-ago quarter.

Revenue for the quarter rose 9.4 percent versus last year to $424.7 million. Analysts were expecting FactSet Research Systems Inc. (NYSE:FDS) to post earnings of $2.99 per share on revenue of $419.4 million.

The company also reaffirmed its financial outlook for the full year. FactSet Research Systems Inc. (NYSE:FDS) continues to expect adjusted earnings in the range of $12.00 – $12.30 per share and revenue between $1.705 – $1.720 billion.

Speaking on the results, CEO of FactSet Research Systems Inc. (NYSE:FDS), Phil Snow, said:

“I’m pleased to report that FactSet once again delivered impressive quarterly results, reflecting the continuing momentum in our business. It is clear that the investments we have made in our business are paying off in top line growth.”

4. Paychex, Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders: 34

Shares of Paychex, Inc. (NASDAQ:PAYX) hit a new 52-week high of $135.46 on Wednesday, December 22, 2021, after delivering impressive financial results for its fiscal second quarter. The human-resources company reported adjusted earnings of 91 cents per share, beating expectations of 80 cents per share.

Revenue for the quarter jumped 13 percent on a year-over-year basis to $1.109 billion, ahead of analysts’ average estimate of $1.06 billion. Paychex, Inc. (NASDAQ:PAYX) said the results were helped by continued sales growth and customer retention.

The company also raised the profit outlook for its FY 2022. Paychex, Inc. (NASDAQ:PAYX) now expects its adjusted earnings to grow in the range of 18 – 20 percent versus its previous forecast of 12 – 14 percent growth.

Commenting on the quarter, CEO of Paychex, Inc. (NASDAQ:PAYX), Martin Mucci, said in a statement:

“Trends that emerged during the pandemic continue unabated, particularly the demand for human resource (“HR”) advice and the need for benefits packages that address talent needs. We continue to support our clients in a proactive manner, as we have done throughout the pandemic.”

3. Cintas Corporation (NASDAQ:CTAS)

Number of Hedge Fund Holders: 36

Shares of Cintas Corporation (NASDAQ:CTAS) slipped nearly two percent on Wednesday, December 22, 2021, after posting its quarterly results. The corporate identity uniforms maker earned $2.76 per share, compared to $2.62 per share in the year-ago quarter.

Revenue came in at $1.92 billion, up from $1.76 billion in the comparable period of 2020.

Cintas Corporation (NASDAQ:CTAS) also raised the financial outlook for its fiscal year 2022. The company now expects adjusted earnings in the range of $10.70 – $10.95 per share on revenue of $7.63 – $7.7 billion. Previously, it was looking for earnings of $10.60 – $10.90 per share and revenue of $7.58 – $7.67 billion.

2. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 36

Shares of CarMax, Inc. (NYSE:KMX) turned red on Wednesday, December 22, 2021, even though the used vehicle retailer posted its fiscal third-quarter results above expectations. The company earned $1.63 per share, up from $1.42 per share in the comparable period of 2020. Analysts were looking for earnings of $1.45 per share.

In addition, CarMax, Inc. (NYSE:KMX) posted revenue of $8.5 billion, up 64.5 percent on a year-over-year basis and ahead of the consensus forecast of $7.378 billion. Moreover, the company sold 415,054 vehicles in the quarter, up nearly 30 percent from the same period last year. The surge was mainly driven by solid demand for its online offerings.

Meanwhile, CarMax, Inc. (NYSE:KMX) purchased 383,215 vehicles from customers in the latest quarter, representing an impressive jump of 91 percent from the year-ago quarter.

Discussing the results, CEO of CarMax, Inc. (NYSE:KMX), Bill Nash, said:

“Our solid execution, customer-centric omni-channel strategy, and macro factors are driving strong performance across our diversified businesses. Our top line momentum continued into this quarter and we achieved record levels of third quarter unit sales in both retail and wholesale, generating all-time record revenues. We also bought more cars from customers than ever before.”

1. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 70

Shares of NIKE, Inc. (NYSE:NKE) rose more than six percent on Tuesday, December 21, 2021, after announcing better-than-expected financial results for its fiscal second quarter. The sportswear company reported earnings of 83 cents per share for the quarter, above expectations of 63 cents per share.

Revenue for the quarter came in at $11.4 billion, nearly flat from the comparable period of 2020. Analysts were expecting NIKE, Inc. (NYSE:NKE) to generate revenue of $11.25 billion.

NIKE, Inc. (NYSE:NKE) reported that its direct sales in the quarter rose nine percent versus last year to $4.7 billion, while digital sales increased 12 percent on a year-over-year basis.

Like its industry peers, NIKE, Inc. (NYSE:NKE) also faced production and logistic hurdles in the quarter. The company mentioned that the pandemic-driven factory closures have affected its progress in recent months. In addition, it also blamed higher freight costs for denting its gross margin.

Speaking on the results, CFO Matt Friend said:

“Our second quarter results reflect our deep consumer connections, the continued strength of our brands and strong marketplace demand. As we navigate through short-term supply challenges, we are focused on executing our Consumer Direct Acceleration strategy to fuel our long-term financial outlook.”

You can also take a peek at 10 Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund and 10 Meme Stocks that More than Doubled in 2021.

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Disclosure: None. 10 Key Quarterly Reports to Watch is originally published on Insider Monkey.