10 Stocks Gaining Attention on Earnings Reports

In this article, we will take a look at the 10 stocks gaining attention on earnings reports.

So far, investors seem impressed with the encouraging earnings reports for the third quarter. Most U.S. stocks have managed to deliver better-than-expected quarterly performance. For instance, Humana Inc. (NYSE:HUM), MGM Resorts International (NYSE:MGM), and CVS Health Corporation (NYSE:CVS) were among the notable stocks that exceeded analysts’ estimates for their respective quarters.

Several other companies, including Electronic Arts Inc. (NASDAQ:EA), Roku, Inc. (NASDAQ:ROKU), and Etsy, Inc. (NASDAQ:ETSY), also came into the spotlight after posting their financial results.

Photo by Ishant Mishra on Unsplash

We will discuss the detailed performance of these companies in the remaining article. So, let’s start our list of 10 stocks gaining attention on earnings reports.

Stocks Gaining Attention on Earnings Reports

10. MetLife, Inc. (NYSE:MET)

Number of Hedge Fund Holders: 41

Shares of MetLife, Inc. (NYSE:MET) slightly moved up in the after-hours trading session on Wednesday, 3 November 2021, after announcing better-than-expected financial results for the third quarter.

The health insurance company reported adjusted earnings of $2.39 per share, up from $1.73 per share in the same period last year. Revenue came in at $17.09 billion versus $16.51 billion in the year-ago quarter. Analysts were expecting MetLife, Inc. (NYSE:MET) to report earnings of $1.74 per share on revenue of $16.28 billion.

Speaking on the results, CEO Michel Khalaf said:

“MetLife delivered another very strong quarter. Outstanding variable investment income more than offset elevated COVID claims, underlying PFO growth was strong, and expense discipline held firm. Having the right strategy, a superior asset mix, and consistent execution continues to generate exceptional earnings.”

Like MetLife, Inc. (NYSE:MET), investors are also closely watching Humana Inc. (NYSE:HUM), MGM Resorts International (NYSE:MGM), CVS Health Corporation (NYSE:CVS), Electronic Arts Inc. (NASDAQ:EA), and Roku, Inc. (NASDAQ:ROKU) after they released their financial results.

9. Emerson Electric Co. (NYSE:EMR)

Number of Hedge Fund Holders: 45

Shares of Emerson Electric Co. (NYSE:EMR) fell nearly five percent on Wednesday, 3 November 2021, after its fiscal fourth-quarter revenue fell short of expectations. The diversified manufacturing and technology company’s revenue slipped nine percent versus last year to $4.9 billion and came in below the consensus forecast of $5.09 billion.

On the bright side, adjusted earnings for the quarter rose 10 percent on a year-over-year basis to $1.21 per share, beating analysts’ average estimate of $1.18 per share.

Emerson Electric Co. (NYSE:EMR) also issued the financial outlook for its fiscal first quarter and full year. For its fiscal first quarter, it expects adjusted earnings in the range of 98 cents per share to $1.02 per share and revenue growth between 7 – 9 percent. For its FY 2022, it expects adjusted earnings of $4.82 – $4.97 per share and revenue growth of 5 – 7 percent.

8. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 47

Etsy, Inc. (NASDAQ:ETSY) recently announced better-than-expected profit and sales for the third quarter. The Brooklyn, New York-based company earned 62 cents per share in the quarter, down from 70 cents per share in the comparable period of 2020.

In addition, Etsy, Inc. (NASDAQ:ETSY) posted revenue of $532.4 million, up 18 percent versus the year-ago quarter. The results exceeded the consensus forecast of 55 cents per share for earnings and $519 million for revenue.

The company also issued its revenue outlook for the fourth quarter. Etsy, Inc. (NASDAQ:ETSY) expects to generate revenue in the range of $660 million – $690 million, slightly short of $691 million estimated by analysts.

CEO Josh Silverman expressed his satisfaction with the latest quarterly performance, saying:

“Our excellent third quarter results further reflect that we’re moving the needle on frequency, and that many of the millions of buyers who found or re-found Etsy during the pandemic are sticking with us, and performing even better than historical cohorts.”

7. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 49

Shares of Marriott International, Inc. (NASDAQ:MAR) made a new 52-week high of $166.82 on Wednesday, 3 November 2021, after announcing impressive financial results for the third quarter. The Bethesda, Maryland-based hotel chain attributed the results to significant improvement in revenue per available room amid strong leisure travel.

Marriott International, Inc. (NASDAQ:MAR) reported adjusted earnings of 99 cents per share, significantly higher than 13 cents per share in the comparable quarter of 2020. Analysts were looking for earnings of 98 cents per share.

Revenue came in at $3.946 billion versus $2.254 billion in the year-ago quarter and above analysts’ average estimate of $3.713 billion. In addition, Marriott International, Inc. (NASDAQ:MAR) reported that worldwide comparable systemwide revenue per available room (RevPAR) climbed 118.4 percent on a year-over-year basis. Moreover, the company said that it added 17,456 rooms to its global lodging portfolio during the quarter.

Like Marriott International, Inc. (NASDAQ:MAR), Humana Inc. (NYSE:HUM), MGM Resorts International (NYSE:MGM), CVS Health Corporation (NYSE:CVS), Electronic Arts Inc. (NASDAQ:EA), and Roku, Inc. (NASDAQ:ROKU) are also making headlines following their earnings reports.

6. HubSpot, Inc. (NYSE:HUBS)

Number of Hedge Fund Holders: 54

Shares of HubSpot, Inc. (NYSE:HUBS) turned red in the after-hours trading session on Wednesday, 3 November 2021, despite beating expectations for the third quarter. The developer of cloud-based marketing software reported adjusted earnings of 50 cents per share, up from 28 cents per share in the year-ago quarter.

Revenue for the quarter came in at $339.2 million, translating to a year-over-year surge of 49 percent. Analysts were expecting HubSpot, Inc. (NYSE:HUBS) to report earnings of 43 cents per share on revenue of $326.39 million.

If we look at the performance of its flagship segments, subscription revenue climbed 49 percent versus last year to $329.0 million. In comparison, professional services and other revenue jumped 39 percent to $10.2 million in the quarter. Moreover, HubSpot, Inc. (NYSE:HUBS) reported that its total customers in the quarter increased 34 percent on a year-over-year basis to 128,144.

The company also released its financial outlook for the fourth quarter. HubSpot, Inc. (NYSE:HUBS) expects adjusted earnings in the range of 52 – 54 cents per share and revenue between $356 – $358 million for the current quarter.

Discussing the results, CEO Yamini Rangan said in a statement:

“We’ve been well-positioned to meet the evolving needs of our customers this year, as evidenced by another quarter of impressive results. Our long-term strategy, coupled with the enterprise-grade product announcements we made at INBOUND, give us a solid foundation to continue that momentum and finish out the year strong.”

5. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 56

Shares of Electronic Arts Inc. (NASDAQ:EA) hit a one-month high in the pre-market trading session on Thursday, 4 November 2021, after posting solid revenue for its fiscal second quarter.

The leading videogame publisher reported earnings of $1.02 per share, well above 63 cents per share in the comparable period of 2020. Revenue for the quarter came in at $1.83 billion, compared to revenue of $1.15 billion it generated in the same period last year. Analysts were expecting Electronic Arts Inc. (NASDAQ:EA) to report earnings of  $1.17 per share on revenue of $1.79 billion.

The company also updated the financial outlook for its fiscal third quarter. Electronic Arts Inc. (NASDAQ:EA) expects to earn 2 cents per share on revenue of approx. $1.75 billion for the third quarter.

Speaking on the results, CFO Blake Jorgensen said:

“EA delivered another strong quarter, primarily driven by our EA SPORTS titles and Apex Legends. “Based on our confidence in our franchises and live services, we are again raising guidance this quarter. We’re positioned for a strong holiday season driven by our exciting Battlefield 2042 game, with growth drivers in place for this year, next year, and beyond.”

4. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 59

Humana Inc. (NYSE:HUM) recently caught investors’ attention after announcing mixed financial results for the third quarter. The health insurer reported adjusted earnings of $4.83 per share, beating the consensus forecast of $4.66 per share.

The company had earned $3.08 per share on an adjusted basis in the comparable period of 2020. On the downside, revenue of $20.70 billion for the quarter slightly fell short of $20.90 billion estimated by analysts.

Humana Inc. (NYSE:HUM) also trimmed its financial outlook for 2021, citing coronavirus headwinds. It expects adjusted earnings of about $20.50 per share for the full year, compared to its previous forecast of $21.25 – $21.75 per share.

Commenting on the results, CEO Bruce Broussard said:

“Despite pandemic-related impacts, Humana had a strong third quarter, which we attribute largely to the strength of our Medicare Advantage (MA) offerings, highlighted by our individual MA membership expected to grow 11 percent year-over-year, ahead of industry expectations.”

3. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 59

Shares of MGM Resorts International (NYSE:MGM) rose nearly two percent in the pre-market trading session on Thursday, 4 November 2021, after it surprised investors by reporting a profit for the third quarter.

The hospitality and entertainment company reported adjusted earnings of 3 cents per share, compared to a loss of $1.08 per share in the year-ago quarter. Analysts were expecting MGM Resorts International (NYSE:MGM) to post a loss of 1 cent per share.

In addition, revenue for the quarter climbed 140 percent on a year-over-year basis to $2.7 billion, ahead of the consensus forecast of $2.4 billion. If we look at the performance of major segments, revenue from the Las Vegas Strip Resorts climbed 187 percent to $1.4 billion, while revenue from MGM China skyrocketed 517 percent to $289 million in the quarter. In comparison, revenue from regional operations jumped 66 percent versus last year to $925 million.

2. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 61

Shares of Roku, Inc. (NASDAQ:ROKU) fell to a seven-month low in the pre-market trading session on Thursday, 4 November 2021, after posting lower-than-expected revenue for the third quarter. The company’s revenue for the quarter climbed 51 percent on a year-over-year basis to $680 million but fell short of analysts’ average estimate of $684 million.

On the bright side, quarterly earnings of 48 cents per share easily surpassed the consensus forecast of 6 cents per share. Roku, Inc. (NASDAQ:ROKU) had reported earnings of 9 cents per share on revenue of $452 million for the comparable period of 2020.

Looking forward, Roku, Inc. (NASDAQ:ROKU) expects revenue in the range of $885 million – $900 million for the fourth quarter, below the consensus forecast of $946 million.

Addressing shareholders, Roku, Inc. (NASDAQ:ROKU) said in a statement:

“In the third quarter, ARPU surpassed the milestone of $40 (trailing 12-month basis) and grew nearly 50% year-over-year. As the global shift to TV streaming continues, our performance demonstrates the strength of our business fundamentals and the momentum of our platform monetization.”

1. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 67

CVS Health Corporation (NYSE:CVS) made a new 52-week high of $96.57 on Wednesday, 3 November 2021, after beating expectations for the third quarter. The healthcare company reported adjusted earnings of $1.97 per share, up from $1.66 per share in the comparable period of 2020.

Revenue for the quarter increased 10 percent on a year-over-year basis to $73.8 billion. Analysts were expecting CVS Health Corporation (NYSE:CVS) to report earnings of $1.79 per share on revenue of $70.5 billion.

If we look at the year-over-year performance of key businesses, revenue from the health care benefits segment rose 9.5 percent, while revenue from the pharmacy services segment increased 9.3 percent in the quarter. In comparison, revenue from the retail segment jumped 10 percent versus last year, partly driven by the administration of coronavirus vaccinations and diagnostic testing.

CVS Health Corporation (NYSE:CVS) also raised its financial outlook for the full year. It expects adjusted earnings in the range of $7.90 – $8 per share, compared to its previous guidance between $7.70 – $7.80 per share. The revised outlook is better than analysts’ average estimate of $7.79 per share.

Speaking on the results, CEO Karen Lynch said:

“We outperformed expectations once again and continue to lead the way in changing how, when and where care is delivered for millions of Americans. Our services are responsive to evolving consumer needs, from administering millions of COVID-19 tests and vaccines to offering primary care accessible from virtually anywhere, and our touchpoints allow for unmatched impact.”

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Disclosure: None. 10 Stocks Gaining Attention on Earnings Reports is originally published on Insider Monkey.