10 Stocks in the Limelight After Earnings Reports

In this article, we will take a look at the 10 stocks in the limelight after earnings reports.

The third-quarter earnings season has officially kicked off, with major financial institutions posting their financial results this week. JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), First Republic Bank (NYSE:FRC), and BlackRock, Inc. (NYSE:BLK) were among the notable stocks from the financial sector that recently came up with their earnings reports.

Besides financial services companies, stocks from the industrials and technology sectors, such as  Delta Air Lines, Inc. (NYSE:DAL) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), also released their quarterly reports.

To evaluate the detailed performance of these stocks, let’s start our list of 10 stocks in the limelight after earnings reports.

10 Stocks in the Limelight After Earnings Reports

10. Fastenal Company (NASDAQ:FAST)

Number of Hedge Fund Holders: 25

Fastenal Company (NASDAQ:FAST) recently announced its financial results for the third quarter ended 30 September 2021. The industrial equipment maker reported earnings of 42 cents per share, slightly higher than 38 cents per share in the comparable period of 2020.

Revenue for the quarter came in at $1.55 billion, up 10 percent from the year-ago quarter. Analysts were expecting Fastenal Company (NASDAQ:FAST) to report earnings of 42 cents per share on revenue of $1.54 billion.

Fastenal Company (NASDAQ:FAST) said it experienced solid demand for its manufacturing and construction equipment during the quarter. However, sales of some products were limited by the Covid-19 pandemic in certain end markets, the company added.

9. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 31

Shares of Domino’s Pizza, Inc. (NYSE:DPZ) slipped over three percent in the pre-market trading session Thursday, 14 October 2021, after the company’s fiscal third-quarter sales fell short of expectations.

Domino’s Pizza, Inc. (NYSE:DPZ) posted revenue of $998 million for the three months ended 12 September 2021, missing the consensus forecast of $1.04 billion. The pizza restaurant chain had generated revenue of $967.7 million in the comparable period of 2020.

On the bright side, Domino’s Pizza, Inc. (NYSE:DPZ) reported earnings of $3.24 for the quarter, up from $2.49 per share in the year-ago quarter. Analysts were looking for earnings of $3.11 per share.

Like Domino’s Pizza, Inc. (NYSE:DPZ), analysts are also closely watching BlackRock, Inc. (NYSE:BLK), Delta Air Lines, Inc. (NYSE:DAL), Morgan Stanley (NYSE:MS), and JPMorgan Chase & Co. (NYSE:JPM) after their financial results.

8. First Republic Bank (NYSE:FRC)

Number of Hedge Fund Holders: 34

Shares of First Republic Bank (NYSE:FRC) rose over two percent on Wednesday, 13 October 2021, after announcing better-than-expected profit and sales for the third quarter. The California-based bank and wealth management company reported earnings of $1.91 per share, beating the consensus forecast of $1.84 per share.

Revenue for the quarter jumped 30.1 percent on a year-over-year basis to $1.3 billion, ahead of the consensus forecast of $1.27 billion. In comparison, First Republic Bank (NYSE:FRC) had reported earnings of $1.61 per share on revenue of First Republic Bank (NYSE:FRC) in the comparable quarter of 2020.

If we look at the performance of key indicators, loan originations in the quarter came in at $15.5 billion, translating to a surge of 26.3 percent on a year-over-year basis. Total deposits also climbed 39.2 percent to $145.3 billion. Moreover, total wealth management assets jumped nearly 50 percent to $145.3 billion in the quarter.

Speaking on the results, Co-CEO Jim Herbert said:

“First Republic had another strong quarter of growth in loans, deposits and wealth management assets. Our client-centric business model continues to perform very well across all our segments and markets.”

Like First Republic Bank (NYSE:FRC), BlackRock, Inc. (NYSE:BLK), Delta Air Lines, Inc. (NYSE:DAL), Morgan Stanley (NYSE:MS), and JPMorgan Chase & Co. (NYSE:JPM) also caught investors’ attention after posting their quarterly earnings.

7. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Number of Hedge Fund Holders: 41

Shares Walgreens Boots Alliance, Inc. (NASDAQ:WBA) slightly moved up in the pre-market trading session Thursday, 14 October 2021, after the pharmacy store chain delivered impressive results for its fiscal fourth quarter.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) reported adjusted earnings of $1.17 for the three months ended 31 August 2021, significantly higher than 91 cents per share in the same period last year.

Revenue for the quarter came in at $34.3 billion, up 12.8 percent on a year-over-year basis. The results easily exceeded analysts’ average estimate of $1.02 per share for earnings and $33.03 billion for revenue.

U.S. sales in the quarter rose 6.6 percent to $28.8 billion. U.S. pharmacy sales rose 6.7 percent, while U.S. retail sales increased 6.5 percent versus the comparable period of 2020. In comparison, international sales climbed 61.8 percent to $5.5 billion. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) also reported that it administered over 40 million coronavirus vaccinations during the quarter.

Discussing the results, CEO Roz Brewer said:

“Our fourth quarter and fiscal year results exceeded expectations, driven by strong performance in our core business. Comparable U.S. pharmacy and retail sales both saw robust growth and recovery continued in our UK business as COVID-19 restrictions eased in the quarter.”

6. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 41

U.S. Bancorp (NYSE:USB) announced better-than-expected financial results for the third quarter on Thursday, 14 October 2021. The Minneapolis-based bank reported earnings of $1.30 per share, beating the consensus forecast of $1.15 per share. It had reported earnings of 99 cents per share in the same period last year.

Revenue for the quarter came in at $5.89 billion, marginally down from $5.96 billion in the comparable period of 2020. Analysts were expecting U.S. Bancorp (NYSE:USB) to post revenue of  $5.76 billion.

In addition, net interest income for the quarter slipped from $3.23 billion to $3.17 billion, missing the consensus forecast of $3.18 billion. Moreover, average total loans for the quarter also fell 4.6 percent on a year-over-year basis to $14.3 billion. On the bright side, average total deposits for the quarter jumped 6.4 percent to $26 billion.

Commenting on the results, CEO Andy Cecere said:

“Our results were supported by continued momentum across our fee businesses, a pick-up in loan growth, and improvement in our efficiency ratio. Credit quality was once again better than expected and for the third straight quarter our net charge-off ratio hit a record low level. We continue to supplement our organic growth by utilizing excess capital for strategically sound, financially attractive acquisitions.”

5. BlackRock, Inc. (NYSE:BLK)

Number of Hedge Fund Holders: 47

BlackRock, Inc. (NYSE:BLK) is one of the biggest asset managers in the world, providing multiple investment products to millions of customers. It recently came into the limelight after posting better-than-expected financial results for the third quarter.

The New York-based investment management company reported adjusted earnings of $10.95 per share, up from $9.22 per share in the year-ago quarter. Revenue for the quarter jumped nearly 16 percent on a year-over-year basis to $5.05 billion.

Analysts were expecting BlackRock, Inc. (NYSE:BLK) to report earnings of $9.39 per share on revenue of $4.82 billion. The solid third-quarter results sent BlackRock, Inc. (NYSE:BLK) shares up nearly four percent on Wednesday, 13 October 2021.

Speaking on the results, CEO Laurence D. Fink said in a statement:

“Clients continue to seek BlackRock’s insights and advice regarding their entire portfolios, reflecting the benefits of the investments we have made to better serve their evolving needs. BlackRock generated $98 billion of long-term net inflows in the third quarter, representing 9% annualized organic base fee growth and our 6th consecutive quarter in excess of our 5% target, once again demonstrating the strength of our diversified investment and technology platform.”

4. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 49

Shares of Delta Air Lines, Inc. (NYSE:DAL) recently slipped to a nearly one-month low despite beating expectations for the third quarter. The Atlanta-based airline reported adjusted earnings of 30 cents per share for the three months ended 30 September 2021, surpassing the consensus forecast of 17 cents per share.

Delta Air Lines, Inc. (NYSE:DAL) had reported adjusted earnings of $2.33 per share in the comparable period of 2019. Revenue came in at $9.15 billion, ahead of the consensus forecast of $8.4 billion.

Moving forward, Delta Air Lines, Inc. (NYSE:DAL) expects fuel prices to increase in the range of $2.25 to $2.40, compared to the average price of $1.97 per share in the third quarter. The higher prices will weigh on its bottom line in the remaining year, the company said.

Commenting on the results, CEO Ed Bastian said:

“Our September quarter marked an important milestone in our recovery, with our first quarterly profit since the start of the pandemic. “Our revenues reached two-thirds of 2019 levels thanks to the industry-leading operational performance our people delivered through a busy summer, once again showing why they are the best in the business.”

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 64

Shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) were trading higher in the pre-market trading session on Thursday, 14 October 2021, following its strong profit and sales for the third quarter.

The chip maker’s earnings for the third quarter rose 13.80 percent on a year-over-year basis to $1.08 per share, ahead of the consensus forecast of $1.04 per share. Revenue for the quarter jumped 22.6 percent to $14.88 billion, just above analysts’ average estimate of $14.83 billion.

Gross margin came in at 51.3 percent, while operating margin stood at 41.2 percent in the quarter. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) also issued its sales outlook for the fourth quarter. It expects revenue in the range of $15.4 billion – $15.7 billion.

Discussing the results, CFO Wendell Huang said:

“Our third quarter business was mainly supported by strong demand across all four growth platforms, which are smartphone, HPC, IoT and Automotive-related applications. Moving into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5nm technology.”

2. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 69

Morgan Stanley (NYSE:MS) caught investors’ attention on Thursday, 14 October 2021, after announcing its third-quarter profit and sales above expectations. The results were helped by strong performance across all key business segments.

The New York-based financial services company reported earnings of $1.98 per share, compared to $1.66 per share in the same period last year. Revenue came in at $14.8 billion, up from $11.7 billion in the year-ago quarter. Analysts were expecting Morgan Stanley (NYSE:MS) to report earnings of $1.69 per share on revenue of $13.93 billion.

If we look at the performance of key businesses, revenue from the wealth management segment jumped 28 percent to $5.94 billion, while revenue from the investment banking division climbed 67 percent to $2.85 billion. In comparison, equity revenues rose 24 percent to $2.88 billion, while fixed income revenue fell 16 percent to $1.64 billion.

CEO James P. Gorman expressed his satisfaction with the latest quarterly performance. He said in a statement:

“The Firm delivered another very strong quarter, with robust revenues and improved efficiency producing an ROTCE of 20%. We had standout performance of our integrated Investment Bank and record net new assets of $135 billion in Wealth Management. Year-to-date, our successful integrations of E*TRADE and Eaton Vance have supported growth of $400 billion in net new client assets across Wealth and Investment Management, bringing our total combined client assets to $6.2 trillion.”

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 108

JPMorgan Chase & Co. (NYSE:JPM) recently announced better-than-expected financial results for the third quarter. The banking giant reported earnings of $3.74 per share, crushing the consensus forecast of $3 per share.

Revenue for the quarter came in at $30.44 billion, above the consensus forecast of $29.79 billion. JPMorgan Chase & Co. (NYSE:JPM) had reported earnings of $2.92 per share on revenue of $29.94 billion in the comparable period of 2020.

Average loans in the quarter rose 5 percent on a year-over-year basis, while average deposits jumped 19 percent. If we see the performance of key segments, JPMorgan Chase & Co. (NYSE:JPM)’s commercial banking revenue increased 10.3 percent to $2.52 billion, while consumer and community banking revenue slipped 2.9 percent to $12.52 billion. In comparison, revenue from the corporate and investment bank increased 7.4 percent to $12.4 billion.

Speaking on the results, CEO Jamie Dimon said in a statement:

“JPMorgan Chase delivered strong results as the economy continues to show good growth – despite the dampening effect of the Delta variant and supply chain disruptions. We released credit reserves of $2.1 billion, as the economic outlook continues to improve and our scenarios have improved accordingly.”

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Disclosure: None. 10 Stocks in the Limelight After Earnings Reports is originally published on Insider Monkey.