10 Stocks Gaining Attention After Beating Profit Expectations

In this article, we will take a look at the 10 stocks gaining attention after beating profit expectations.

The third-quarter earnings season has nearly come to an end. Retail giant Walmart Inc. (NYSE:WMT) and home improvement retailer The Home Depot, Inc. (NYSE:HD) were among the most-watched stocks after they released their financial results.

The Home Depot, Inc. (NYSE:HD) shares have climbed to a new high after beating expectations, while Walmart Inc. (NYSE:WMT) shares were seen trading nearly flat in the pre-market trading session on 16 November 2021. Several other companies, including Advance Auto Parts, Inc. (NYSE:AAP), TransDigm Group Incorporated (NYSE:TDG), and Aramark (NYSE:ARMK), also gained investors’ attention after posting their quarterly results.

Photo by Nicholas Cappello on Unsplash

We will discuss the detailed performance of these stocks in the remaining article. Therefore, let’s start our list of 10 stocks gaining attention after beating profit expectations.

10 Stocks Gaining Attention After Beating Profit Expectations

10. Rackspace Technology, Inc. (NASDAQ:RXT)

Number of Hedge Fund Holders: 18

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) jumped nearly 10 percent in the after-hours trading session on Monday, 15 November 2021, after announcing better-than-expected financial results for the third quarter.

The cloud computing company reported adjusted earnings of 25 cents per share, up 32 percent from 19 cents per share in the same period last year. Revenue for the quarter rose 12 percent versus last year to $763 million. Analysts were expecting Rackspace Technology, Inc. (NASDAQ:RXT) to report earnings of 24 cents per share on revenue of $756 million.

The company also released its financial outlook for the fourth quarter. Rackspace Technology, Inc. (NASDAQ:RXT) expects adjusted earnings in the range of 23 – 25 cents per share and revenue between $766 – $776 million for the current quarter.

9. Endeavor Group Holdings, Inc. (NYSE:EDR)

Number of Hedge Fund Holders: 24

Shares of Endeavor Group Holdings, Inc. (NYSE:EDR) rose nearly four percent in the after-hours trading session on Monday, 15 November 2021, after beating expectations for the third quarter.

The global sports and entertainment company earned 16 cents per share in the quarter, beating the consensus forecast of 12 cents per share. In addition, Endeavor Group Holdings, Inc. (NYSE:EDR) generated revenue of $1.39 billion during the quarter, up 61 percent from $864.5 million in the same period of 2020. Analysts were looking for revenue of $1.32 billion.

Endeavor Group Holdings, Inc. (NYSE:EDR) also raised its revenue outlook for 2021. The company is now anticipating revenue in the range of $4.89 – $4.95 billion for the full year, compared to its previous forecast of $4.8 – $4.85 billion.

Speaking on the results, CEO Ariel Emanuel said:

“We continue to capitalize on the elevated demand for premium content and live events coming out of the pandemic. Given our unique positioning within the sports and entertainment industry and our ability to leverage powerful secular content trends, we see no signs of this momentum waning through the end of the year.”

Like Endeavor Group Holdings, Inc. (NYSE:EDR), investors are also closely watching Walmart Inc. (NYSE:WMT), The Home Depot, Inc. (NYSE:HD), Advance Auto Parts, Inc. (NYSE:AAP), TransDigm Group Incorporated (NYSE:TDG), and Aramark (NYSE:ARMK) following their quarterly reports.

8. Axon Enterprise, Inc. (NASDAQ:AXON)

Number of Hedge Fund Holders: 24

Shares of Axon Enterprise, Inc. (NASDAQ:AXON) skyrocketed more than 20 percent in the after-hours trading session on Monday, 15 November 2021, after delivering impressive financial results for the third quarter.

The Arizona-based company reported adjusted earnings of $1.17 per share, significantly higher than 38 cents per share in the year-ago quarter. Analysts were expecting Axon Enterprise, Inc. (NASDAQ:AXON) to report earnings of 26 cents per share.

Revenue for the quarter also climbed 39 percent on a year-over-year basis to $232 million, beating expectations of $201 million. Revenue from the TASER segment jumped 44 percent versus last year to $121 million, while cloud revenue soared 39 percent to $63 million in the quarter.

Axon Enterprise, Inc. (NASDAQ:AXON) also reaffirmed its revenue outlook of $840 million – $850 million for the full year, saying it expects to post a revenue close to the higher end of the guidance.

7. AECOM (NYSE:ACM)

Number of Hedge Fund Holders: 32

Shares of AECOM (NYSE:ACM) hit a new 52-week high of $73.86 on Monday, 15 November 2021, after posting its fiscal fourth-quarter results above expectations. The infrastructure consulting firm reported adjusted earnings of 81 cents per share, up from 60 cents per share in the year-ago quarter. Analysts were looking for earnings of 77 cents per share.

Revenue for the quarter slipped 6 percent on a year-over-year basis to $3.4 billion, nearly in line with the consensus forecast. Revenue from the Americas region slipped 6 percent versus last year to $2.6 billion, while international revenue decreased 7 percent to $771 million.

AECOM (NYSE:ACM) also released its financial outlook for its FY 2022. It expects adjusted earnings in the range of $3.20 per share – $3.40 per share and free cash flow between $450 million – $650 million.

Like AECOM (NYSE:ACM), Walmart Inc. (NYSE:WMT), The Home Depot, Inc. (NYSE:HD), Advance Auto Parts, Inc. (NYSE:AAP), TransDigm Group Incorporated (NYSE:TDG), and Aramark (NYSE:ARMK), also came into the spotlight after beating earnings expectations.

6. Tyson Foods, Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 33

Shares of Tyson Foods, Inc. (NYSE:TSN) closed higher on Monday, 15 November 2021, after announcing better-than-expected financial results for its fiscal fourth quarter. The results were mainly driven by soaring meat prices and solid demand from restaurant industry.

The Arkansas-based company reported adjusted earnings of $2.30 per share, well above $1.70 per share in the comparable period of 2020. Revenue came in at $12.81 billion, up from $11.46 billion in the year-ago quarter. Analysts were expecting Tyson Foods, Inc. (NYSE:TSN) to post earnings of $2.22 per share on revenue of $12.66 billion.

Looking forward, Tyson Foods, Inc. (NYSE:TSN) expects revenue in the range of $49 billion – $51 billion for its fiscal year 2022, above analysts’ average estimate of $47.99 billion.

CEO Donnie King expressed his satisfaction with the results. King said in a statement:

“We delivered double digit sales and earnings growth during the fourth quarter and full year, and our performance was supported by our diverse portfolio and continued strength in consumer demand for protein. We delivered a record performance in our beef segment and experienced share gains in our retail core business lines, which include our Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands, while supporting the continued recovery in foodservice.”

5. Advance Auto Parts, Inc. (NYSE:AAP)

Number of Hedge Fund Holders: 34

Advance Auto Parts, Inc. (NYSE:AAP) recently caught investors’ attention after announcing better-than-expected financial results for the third quarter. The automotive aftermarket parts provider reported adjusted earnings of $3.21 per share, up 21.6 percent from the same period last year.

Revenue came in at $2.62 billion, up 3.1 percent versus the year-ago quarter. Analysts were expecting Advance Auto Parts, Inc. (NYSE:AAP) to report adjusted earnings of $2.87 per share on revenue of $2.58 billion.

The company also updated its sales outlook for 2021. Advance Auto Parts, Inc. (NYSE:AAP) now expects revenue in the range of $10.90 – $10.95 billion for the full year, compared to its previous forecast between $10.60 – $10.80 billion.

Speaking on the results, CEO Tom Greco said in a statement:

“In Q3, we delivered another quarter of improved top-line growth and margin expansion and returned significant cash to our shareholders in line with the strategy we outlined in April.”

4. Aramark (NYSE:ARMK)

Number of Hedge Fund Holders: 36

Shares of Aramark (NYSE:ARMK) traded nearly flat in the pre-market trading session on Tuesday, 16 November 2021, despite delivering solid profit and sales for its fiscal fourth quarter.

The Pennsylvania-based food service company reported adjusted earnings of 56 cents per share, crushing the consensus forecast of 19 cents per share. Quarterly revenue of $3.55 billion also easily surpassed the consensus forecast of $3.29 billion. Aramark (NYSE:ARMK) had posted adjusted earnings of 21 cents per share on revenue of $2.69 million for the comparable period of 2020.

Looking forward, Aramark (NYSE:ARMK) projected organic growth in the range of 23 – 27 percent for its FY 2022, with sales expected to hit pre-pandemic levels by year-end.

Commenting on the quarter, CEO John Zillmer said:

“Our fourth quarter and full year results reflected the progress we have made across our business as organic revenue reached 87% of pre-COVID levels. The Company achieved record Net New Business performance across lines of business, geographies, and client size—demonstrating the execution of our strategic growth initiatives, which we are confident will position Aramark to drive higher sustainable growth and create meaningful value for our stakeholders.”

3. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 57

Shares of TransDigm Group Incorporated (NYSE:TDG) closed higher on Monday, 15 November 2021, after surpassing profit expectations for its fiscal fourth quarter. The aerospace manufacturing company reported adjusted earnings of $4.25 per share, up 47 percent from $2.89 per share in the year-ago quarter.

In addition, TransDigm Group Incorporated (NYSE:TDG) posted revenue of $1.28 billion, up 9 percent versus the same period last year. Analysts were looking for earnings of $3.52 per share on revenue of $1.32 billion.

Discussing the results, CEO Kevin Stein said:

“Trends remain favorable for the recovery of the commercial aerospace industry. Air traffic continues to improve globally, along with vaccination rates. The recovery remains primarily driven by domestic air travel, though international travel restrictions are starting to soften in certain markets, which is encouraging.”

2. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 64

Shares of The Home Depot, Inc. (NYSE:HD) rose to a new high in the pre-market trading session on Tuesday, 16 November 2021, after announcing strong financial results for the third quarter, as customers continue to spend on home improvement projects.

The Georgia-based home improvement retailer earned $3.92 per share in the quarter, up from $3.43 per share in the same period last year. Analysts were looking for earnings of $3.42 per share.

Revenue for the quarter rose nearly 10 percent on a year-over-year basis to $36.82 billion, crushing the consensus forecast of $34.95 billion. In addition, same-store sales increased to 6.1 percent, beating expectations of 2.4 percent growth with a big margin. Moreover, U.S. same-store sales also improved to 5.5 percent, beating the consensus forecast for a 2.3 percent surge.

CEO Craig Menear expressed his pleasure with the results, saying:

“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility. Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted.”

1. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 71

Shares of Walmart Inc. (NYSE:WMT) slightly moved down in the pre-market trading session on Tuesday, 16 November 2021, despite beating expectations for the third quarter. The retail giant reported adjusted earnings of $1.45 per share, up from $1.34 per share in the year-ago quarter.

Revenue came in at $140.53 billion, compared to $134.71 billion in the same period of 2020. Analysts were expecting Walmart Inc. (NYSE:WMT) to report earnings of $1.40 per share on revenue of $135.43 billion.

Comparable sales in the U.S. increased 9.2 percent, above expectations of 6.9 percent. Moreover, Sam’s Club comparable sales in the quarter jumped 13.9 percent versus last year and 25 percent versus 2019.

In addition, e-commerce sales in the U.S. rose 8 percent versus last year and about 87 percent versus 2019. On the downside, Walmart’s international sales decreased nearly 20 percent on a year-over-year basis to $23.6 billion.

Walmart Inc. (NYSE:WMT) also raised the earnings outlook for its FY 2022. The company now expects adjusted earnings of $6.40 per share, compared to its earlier outlook in the range of $6.20 – $6.35 per share. The updated guidance is also above the consensus forecast of $6.34 per share.

Speaking on the results, CEO Doug McMillon said:

“Our momentum continues with strong sales and profit growth globally. Our omnichannel focus is pushing digital penetration to record levels. We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world.”

You can also take a peek at 11 Best Hotel Stocks To Invest In and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.

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Disclosure: None. 10 Stocks Gaining Attention After Beating Profit Expectations is originally published on Insider Monkey.