In this article, we will take a look at the 10 stocks making headlines after earnings reports.
Notable companies from the technology and communication services sectors, including Datadog, Inc. (NASDAQ:DDOG), Uber Technologies, Inc. (NYSE:UBER), The Walt Disney Company (NYSE:DIS) and Twitter, Inc. (NYSE:TWTR) recently released financial results for their respective quarters.
If we look at their price actions, shares of Disney and Datadog turned green after delivering upbeat financial performance, while Twitter shares fell following its weak results and outlook. On the other hand, Uber Technologies shares dropped for two consecutive trading sessions even after posting better-than-expected results.
Several other companies, including beverage giant PepsiCo, Inc. (NASDAQ:PEP) and pharmaceutical company AstraZeneca PLC (NASDAQ:AZN), also came out with their quarterly reports earlier this week.
Now let’s review the key financial highlights of these companies.
Stocks Making Headlines After Earnings Reports
10. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 34
Shares of Motorola Solutions, Inc. (NYSE:MSI) fell to a nearly six-month low on Thursday, February 10, 2022, after announcing mixed financial results for the fourth quarter. The Illinois-based company reported adjusted earnings of $2.85 per share, nearly unchanged from $2.86 per share in the year-ago quarter. Analysts were looking for earnings of $2.74 per share.
Revenue for the quarter rose just two percent versus last year to $2.32 billion, marginally below expectations of $2.33 billion. Motorola Solutions, Inc. also released its segment-wise sales performance. Revenue from the software and services segment jumped 8 percent, while revenue from the products and systems integration segment slipped 1 percent in the quarter.
Looking forward, Motorola Solutions, Inc. expects adjusted earnings in the range of $1.53 – $1.59 per share and revenue growth of around 3 percent for the first quarter. For the full year, it expects adjusted earnings between $9.80 – $9.95 per share and revenue growth of about 7 percent.
9. Zebra Technologies Corporation (NASDAQ:ZBRA)
Number of Hedge Fund Holders: 39
Shares of Zebra Technologies Corporation (NASDAQ:ZBRA) fell nearly eight percent on Thursday, February 10, 2022, despite posting better-than-expected financial results for the fourth quarter.
Zebra Technologies Corporation reported adjusted earnings of $4.54 per share on revenue of $1.47 billion. The results surpassed analysts’ average estimate of $4.40 per share for earnings and $1.46 billion for revenue.
If we look at the segment-wise sales performance, revenue from the enterprise visibility & mobility segment increased to $1.02 billion versus $888 million in the year-ago quarter. In comparison, its asset intelligence & tracking segment generated revenue of $444 million, compared to $425 million in the same period last year.
Zebra Technologies Corporation also released its financial outlook for the first quarter. It expects adjusted earnings in the range of $3.70 – $4 per share and revenue growth of 1 – 3 percent for the current quarter.
Like Zebra Technologies Corporation, investors are also eyeing Uber Technologies, Inc., The Walt Disney Company and Twitter, Inc., following their latest financial results.
8. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 41
Shares of AstraZeneca PLC closed higher on Thursday, February 10, 2022, following its upbeat fourth-quarter results and solid full-year outlook. The Swedish pharmaceutical giant reported core earnings of $1.67 per share, crushing expectations of $1.50 per share.
Revenue for the quarter climbed 63 percent on a year-over-year basis to $12.01 billion, while analysts were expecting AstraZeneca PLC to generate revenue of $10.79 billion.
Among other updates, AstraZeneca PLC stated that it is increasing the annual dividend by 10 cents to $2.90, marking the first yearly dividend hike in nearly a decade. Looking forward, the company expects its core earnings to increase in the mid-to-high twenties percentage in 2022.
Speaking on the results, CEO Pascal Soriot said:
“The positive news from our pipeline, including approvals for Evusheld and Tezspire, supports the outlook for 2022. This, along with the transformative acquisition of Alexion, means that we are confident in our long-term growth and profitability. After a landmark year in 2021, we are increasing the dividend for our shareholders.”
7. O’Reilly Automotive, Inc. (NASDAQ:ORLY)
Number of Hedge Fund Holders: 44
Shares of O’Reilly Automotive, Inc. rose nearly three percent on Thursday, February 10, 2022, after delivering solid profit and sales for the fourth quarter. The auto parts retailer earned $7.64 per share, significantly higher than $5.40 per share in the year-ago period.
Revenue for the quarter came in at $3.29 billion, up from $2.83 billion in the comparable period of 2020. Analysts were expecting O’Reilly Automotive, Inc. to earn $6.17 per share on revenue of $3.11 billion.
O’Reilly Automotive, Inc. also updated its financial outlook for 2022. The company expects earnings in the range of $32.35 – $32.85 per share and revenue between $14.2 – $14.5 billion for the full year.
Like O’Reilly Automotive, Inc., Uber Technologies, Inc., The Walt Disney Company and Twitter, Inc. also caught investors’ attention after their earnings reports.
6. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 50
Shares of MGM Resorts International (NYSE:MGM) turned red on Wednesday, February 10, 2022, even after announcing better-than-expected financial results for the fourth quarter. The hospitality and entertainment company reported adjusted earnings of 12 cents per share, compared to an adjusted loss of 90 cents per share in the year-ago period.
Revenue for the quarter climbed 105 percent versus last year to $3.1 billion. Analysts were expecting MGM Resorts International to post earnings of 2 cents per share on revenue of $2.78 billion.
MGM Resorts International also reported its segment-wise sales performance. Revenue from the Las Vegas Strip Resorts skyrocketed 277 percent to $1.8 billion, while revenue from regional operations climbed 51 percent to $900 million. In comparison, revenue from MGM China increased 3 percent to $315 million in the quarter.
Speaking on the results, CEO Bill Hornbuckle said in a statement:
“The strategic milestones we achieved in 2021 position us for further success in 2022, and we remain excited about our long-term opportunities including: leading the U.S. sports betting and iGaming market through BetMGM, pursuing disciplined geographic expansion such as the Japan integrated resort, and reinvesting in our core business to drive sustainable growth.”
5. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 61
PepsiCo, Inc. recently announced better-than-expected financial results for the fourth quarter. However, the New York-based beverage giant warned that rising costs might weigh on its profit in the current fiscal year.
Companies in the packaged food industry, including PepsiCo, Inc., have been grappling with increasing costs amid higher shipping and labor charges as well as pandemic-driven supply chain disruptions.
In response, many companies have increased their product prices to maintain their profit margins. However, some industry experts believe that price hikes alone may not be enough to offset the negative effects of the rising costs.
Coming back to the results, PepsiCo, Inc. reported adjusted earnings of $1.53 per share, just ahead of the consensus forecast of $1.52 per share. Revenue for the quarter jumped 12 percent on a year-over-year basis to $25.25 billion, beating expectations of $24.24 billion. Looking forward, the company expects organic revenue growth of 6 percent for 2022.
PepsiCo, Inc. also released its segment-wise sales performance. Revenue from the Frito-Lay North America segment rose 13 percent, while Quaker Foods North America’s revenue increased 9 percent. In comparison, PepsiCo Beverages North America’s revenue jumped 13 percent in the quarter.
4. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 62
Shares of Datadog, Inc. jumped over 12 percent on Thursday, February 10, 2022, after delivering impressive fourth quarter results. The software solutions provider reported adjusted earnings of 20 cents per share, significantly higher than 6 cents per share in the year-ago period.
In addition, Datadog, Inc. posted revenue of $326.2 million, translating to a massive surge of 84 percent on a year-over-year basis. The results easily topped analysts’ average estimate of 12 cents per share for earnings of and $291.48 million for revenue.
Datadog, Inc. also released its financial outlook for the first quarter. It expects adjusted earnings in the range of 10 – 12 cents per share and revenue between $334 – $339 million for the current quarter.
3. Twitter, Inc. (NYSE:TWTR)
Number of Hedge Fund Holders: 94
Twitter, Inc. recently announced disappointing financial results for the fourth quarter, along with a feeble sales outlook. The weak results sent Twitter shares down nearly two percent on Thursday, February 10, 2022.
For the fourth quarter, Twitter, Inc. earned 33 cents per share on an adjusted basis, missing expectations of 35 cents per share. Revenue came in at $1.57 billion, slightly below analysts’ average estimate of $1.58 billion.
Looking forward, Twitter, Inc. expects revenue in the range of $1.17 – $1.27 billion for the current quarter. Analysts, on average, had forecast revenue of $1.26 billion for the same period.
Commenting on the results, CEO Ned Segal said:
“Twitter had a solid fourth quarter to finish 2021, with over $5 billion in annual revenue, up 37% for the year. There are no changes to our goals of 315 million average mDAU in Q4 2023 and $7.5 billion or more revenue in 2023. Our increased focus on performance ads and the SMB opportunity after the sale of MoPub positions us even better for 2022 and beyond.”
2. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
Shares of The Walt Disney Company rose over three percent on Thursday, February 10, 2022, after delivering upbeat financial performance for its fiscal first quarter. The entertainment and media giant earned $1.06 per share on an adjusted basis, well above 32 cents per share in the year-ago period. The numbers were also significantly higher than the consensus forecast of 63 cents per share.
Revenue for the quarter surged 34 percent versus last year to $21.82 billion, while analysts expected The Walt Disney Company to generate revenue of $20.91 billion. Revenue from its parks, experiences and products segment jumped more than two folds on a year-over-year basis to $7.23 billion in the quarter.
Among other updates, The Walt Disney Company reported that its total Disney+ subscribers reached 129.8 million at the end of Q1, compared to 94.9 million in the same period one year ago.
Speaking on the results, CEO Bob Chapek said:
“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Shares of Uber Technologies, Inc. fell for two straight days despite beating expectations for the fourth quarter. The provider of ride-hailing services posted an adjusted loss of 26 cents per share, narrower than a loss of 35 cents per share estimated by analysts.
Revenue for the quarter climbed 83 percent on a year-over-year basis to $5.8 billion, better than the consensus forecast of $5.360 billion. Among other updates, Uber Technologies, Inc. reported that its gross bookings for the quarter jumped 51 percent to $25.9 billion, while total trips increased 23 percent to 1.77 billion.
Uber Technologies, Inc. also issued its financial outlook for Q1. It expects adjusted EBITDA in the range of $100 million and $130 million for the current quarter, below analysts’ average estimate of around $150 million.
Discussing the results, CEO of Uber Technologies, Inc., Dara Khosrowshahi, said in a statement:
“In Q4, more consumers were active on our platform than ever before, Delivery reached Adjusted EBITDA profitability, and Mobility Gross Bookings approached pre-pandemic levels. While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week.”
You can also take a peek at Morgan Stanley’s Top 10 Stock Picks for 2022 and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.
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This article is originally published at Insider Monkey.
