In this article, we will take a look at the 10 latest earnings that surprised Wall Street.
All three major U.S. indices struggled to find direction on Friday following the latest jobs data from the Bureau of Labor Statistics. The data showed that U.S. employers generated 261,000 jobs in October, significantly higher than the consensus of 200,000 additions. As of 02:04 PM ET, S&P 500 was nearly flat at -0.01 percent, Dow Jones Industrial Average was up 0.08 percent and Nasdaq Composite was down 0.46 percent.
Meanwhile, stocks from the tech and healthcare sectors, including Block, Inc. (NYSE:SQ), Amgen Inc. (NASDAQ:AMGN) and Cigna Corporation (NYSE:CI), recently came into the limelight after smashing earnings expectations for their respective quarters.
In addition, coffee giant Starbucks Corporation (NASDAQ:SBUX) and energy drinks maker Monster Beverage Corporation (NASDAQ:MNST) were also trending following their upbeat earnings. Check out the complete article to see some more earnings reports that surprised Wall Street.
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10. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 41
Shares of Microchip Technology Incorporated (NASDAQ:MCHP) rose over six percent this morning after surpassing profit and sales expectations for its fiscal second quarter. The Arizona-based company reported adjusted earnings of $1.46 per share, up from $1.07 per share in the year-ago period.
Revenue for the quarter jumped nearly 26 percent on a year-over-year basis to $2.073 billion. Analysts expected Microchip Technology Incorporated to earn $1.44 per share on revenue of $2.06 billion.
For its fiscal third quarter, Microchip Technology Incorporated expects adjusted earnings in the range of $1.54 – $1.56 per share and revenue between $2.135 – $2.177 billion.
9. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 43
The Hershey Company (NYSE:HSY) caught investors’ attention today after topping financial expectations for its fiscal third quarter. Moreover, it also lifted its sales outlook for the full year, citing higher-than-expected demand for the holiday season.
The leading chocolate maker earned $2.17 per share on an adjusted basis, crushing estimates of $2.10 per share. In addition, The Hershey Company posted revenue of $2.73 billion, up 15.6 percent on a year-over-year basis and ahead of the consensus of $2.62 billion.
Looking forward, The Hershey Company now expects its full-year sales to grow in the range of 14 – 15 percent, up from its previous forecast calling for growth between 12 – 14 percent.
Like The Hershey Company, investors were also closely watching Block, Inc., Amgen Inc. and Cigna Corporation, after their upbeat earnings.
8. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 44
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) handily surpassed financial expectations for the third quarter. The results were primarily driven by solid sales of its eye treatment EYLEA and asthma drug Dupixent.
The biotechnology company reported adjusted earnings of $11.14 per share, smashing expectations of $9.76 per share. Revenue for the quarter came in at $2.94 billion, while analysts expected Regeneron Pharmaceuticals, Inc. to post revenue of $2.88 billion.
EYLEA continues to be the biggest sales driver for Regeneron Pharmaceuticals, Inc., generating revenue of $1.63 billion in the quarter. The numbers represented a surge of 11 percent over the same period of 2021.
Separately, investment management firm Bronte Capital talked about Regeneron Pharmaceuticals, Inc. in its third-quarter 2022 investor letter, stating:
“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a major position and a stock we wrote up in our June 2021 letter, has been one of the best performing stocks in the S&P 500 this year. Alas it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Prior to COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”
7. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 46
Shares of Monster Beverage Corporation hit a new 52-week high of $100.47 per share on Friday after the energy drinks giant announced a better-than-expected profit for the third quarter.
Monster Beverage Corporation reported earnings of 60 cents per share, down from 63 cents per share in the year-ago period but better than Wall Street expectations of 59 cents.
Revenue for the quarter jumped 15.2 percent on a year-over-year basis to $1.62 billion, while analysts were looking for revenue of $1.65 billion. Monster Beverage Corporation also disclosed the sales performance of its flagship business units.
Revenue from its drinks segment jumped 13 percent to $1.50 billion, while revenue from the strategic brands unit climbed 19.3 percent to $88.8 million in the quarter. Among other updates, Monster Beverage Corporation reported that it repurchased roughly 3.1 million shares of its common stock during the Q3.
Besides Monster Beverage Corporation, Block, Inc., Amgen Inc. and Cigna Corporation were also trending after their recent earnings.
6. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 55
Starbucks Corporation delivered its fiscal fourth-quarter profit and sales above expectations. Moreover, it also reaffirmed its sales outlook for fiscal 2023 despite an uncertain economic environment.
The results sent Starbucks Corporation shares up more than 10 percent on Friday morning. The coffee giant reported adjusted earnings of 81 cents per share, smashing estimates of 72 cents per share.
Revenue for the quarter rose 3 percent versus last year to $8.4 billion, topping expectations of $8.3 billion. In addition, Starbucks Corporation said that its global comparable store sales jumped 7 percent in the quarter.
For its fiscal year 2023, Starbucks Corporation continues to expect revenue growth in the range of 10 – 12 percent. Moreover, the senior management expects its gross margins to improve in the period amid an expected recovery in the Chinese market.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 55
Amgen Inc. handily surpassed profit expectations for the third quarter. The biopharmaceutical company earned $4.70 per share on an adjusted basis, up from $4.08 per share in the year-ago period and above estimates of $4.42 per share.
Revenue for the quarter inched down 1 percent versus last year to $6.65 billion but exceeded the consensus of $6.56 billion. Amgen Inc. blamed currency headwinds for hurting its sales.
For the full year, Amgen Inc. narrowed its adjusted earnings outlook to a range of $17.25 – $17.85 per share, from its previous projection between $17 – $18 per share.
4. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 66
Cigna Corporation recently delivered an impressive financial performance for the third quarter and raised its profit outlook for the full year. The company attributed the results to solid contributions from its Evernorth and Cigna Healthcare segments.
The health service giant earned $6.04 per share on an adjusted basis, crushing expectations of $5.71 per share. In addition, Cigna Corporation posted revenue of $45.3 billion, up 2.4 percent versus last year and above estimates of $44.76 billion.
Looking forward, Cigna Corporation now expects adjusted earnings of at least $23.10 per share for the full year, versus its previous earnings guidance of at least $22.90 per share. The updated forecast is better than the consensus of $23 per share.
Earlier this year, investment management firm Aristotle Capital Management briefly discussed Cigna Corporation in its second-quarter 2022 investor letter. Here’s what the firm said:
“Cigna Corporation (NYSE:CI) contributed to performance in the second quarter, outpacing the benchmark Health Care sector return. We believe Cigna benefited from investors seeking relative “safety” in the managed care sector and the stock’s attractive valuation at just over 10 times next year’s earnings. During the quarter, Cigna reported an earnings beat due to a better-than-expected medical loss ratio.”
3. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 69
Humana Inc. (NYSE:HUM) announced better-than-expected financial results for the third quarter, as the health insurer took advantage of lower medical costs. The company reported adjusted earnings of $6.88 per share, significantly higher than $4.83 per share in the year-ago period and above estimates of $6.28 per share.
Revenue for the quarter increased to $22.75 billion, from $20.69 billion in the corresponding period of 2021. Analysts expected Humana Inc. to generate revenue of $22.69 billion.
For the full year, Humana Inc. projected adjusted earnings of around $25 per share, representing a growth of 21 percent over fiscal 2021.
Commenting on the quarter, CEO Bruce D. Broussard said:
“We are pleased with our third quarter results and the strong performance across all of our businesses. “Humana is well positioned for the 2023 Medicare Advantage Annual Election Period, with plans designed to meet customers’ affordability and healthcare needs, especially important given the current economic conditions and knowing many seniors are on fixed incomes.”
2. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 72
Shares of Block, Inc. rallied over 10 percent on Friday morning as investors cheered the company’s solid results for the third quarter. The digital payments giant reported adjusted earnings of 42 cents per share, beating the estimates of 23 cents per share with a big margin.
Revenue for the quarter rose 17 percent on a year-over-year basis to $4.52 billion, while analysts expected Block, Inc. to post revenue of $4.50 billion. Excluding Bitcoin revenue, total sales climbed 36 percent over the year-ago period.
Discussing the results, Block, Inc. said in a statement:
“We delivered strong growth at scale during the third quarter of 2022. Gross profit grew 38% year over year to $1.57 billion, up 46% on a three-year compound annual growth rate (CAGR) basis. Excluding our BNPL platform, gross profit was $1.42 billion, up 25% year over year and 42% on a three-year CAGR basis.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) recently posted impressive financial results for the third quarter. The travel technology company reported adjusted earnings of $53.03 per share, representing a massive jump of 41 percent over the same period last year.
In addition, Booking Holdings Inc. generated revenue of $6.1 billion, up 29 percent on a year-over-year basis and well ahead of the consensus of $5.92 billion. Gross travel bookings for the quarter also climbed 36 percent to $32.1 billion, beating expectations of $30.48 billion.
Separately, Booking Holdings Inc. also appeared in the third-quarter 2022 investor letter of investment management firm RiverPark Funds. Here’s what the firm said:
“We also bought back a small position in Booking Holdings during the quarter. Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high margin business model (40% EBITDA margin for 2019 and 28% for 2021) that requires limited capital expenditures, typically less than 3% of revenue, producing $4.5 billion free cash flow for 2019 and $2.5 billion for 2021 (due to the vast COVID disruption). The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations. Like all travel companies, Booking was hit hard by the pandemic, but with its high international exposure, we expect the company’s recovery to be equally strong as travel returns.”
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This article is originally published at Insider Monkey.
