10 Stocks That Beat Profit Expectations

In this article, we will take a look at the 10 stocks that beat profit expectations.

Investors and analysts are closely watching the ongoing flood of quarterly reports. Stocks that recently released their earnings reports include McDonald’s Corporation (NYSE:MCD), Bristol-Myers Squibb Company (NYSE:BMY), Thermo Fisher Scientific Inc. (NYSE:TMO), ServiceNow, Inc. (NYSE:NOW), and Twilio Inc. (NYSE:TWLO).

Shares of McDonald’s Corporation (NYSE:MCD), and Thermo Fisher Scientific Inc. (NYSE:TMO) closed higher after beating expectations. However, Twilio Inc. (NYSE:TWLO) shares lost substantial value after issuing weak fourth-quarter outlook. In addition, stocks like O’Reilly Automotive, Inc. (NASDAQ:ORLY), Ford Motor Company (NYSE:F), and Xilinx, Inc. (NASDAQ:XLNX) are also making headlines after topping quarterly estimates.

Pixabay/Public Domain

To discuss the detailed performance of these companies, let’s start our list of 10 stocks that beat profit expectations.

Stocks That Beat Profit Expectations

10. Automatic Data Processing, Inc. (NASDAQ:ADP)

Number of Hedge Fund Holders: 41

Shares of Automatic Data Processing, Inc. (NASDAQ:ADP) made a new 52-week high of $224.76 on Wednesday, 27 October 2021, after announcing better-than-expected financial results for its fiscal first quarter.

The provider of human resources management software and services reported adjusted earnings of $1.65 per share, up from $1.41 per share in the year-ago quarter. Revenue for the quarter rose 10 percent on a year-over-year basis to $3.8 billion. Analysts were expecting Automatic Data Processing, Inc. (NASDAQ:ADP) to report earnings of $1.49 per share on revenue of $3.75 billion.

Automatic Data Processing, Inc. (NASDAQ:ADP) also issued the financial outlook for its fiscal year 2022. It expects adjusted earnings growth in the range of 11- 13 percent and revenue growth between 7 – 8 percent for the full year.

9. O’Reilly Automotive, Inc. (NASDAQ:ORLY)

Number of Hedge Fund Holders: 44

O’Reilly Automotive, Inc. (NASDAQ:ORLY) just delivered another impressive quarter. The auto parts retailer reported earnings of $8.07 per share for the third quarter, beating the consensus forecast of $7.21 per share.

Revenue came in at $3.48 billion, exceeding analysts’ average estimate of $3.31 billion. O’Reilly Automotive, Inc. (NASDAQ:ORLY) had posted earnings of $7.07 per share on revenue of $3.21 billion for the comparable period of 2020.

Speaking on the results, CEO Greg Johnson said in a statement:

“The top-line strength we experienced through the first three quarters of the year has continued thus far in October, and we expect to generate continued solid sales volumes as we finish out 2021.”

O’Reilly Automotive, Inc. (NASDAQ:ORLY) also released its financial outlook for 2021. The company expects earnings in the range of $29.25 – $29.45 per share and revenue between $12.9 billion and $13.2 billion for the full year.

Like O’Reilly Automotive, Inc. (NASDAQ:ORLY), McDonald’s Corporation (NYSE:MCD), Bristol-Myers Squibb Company (NYSE:BMY), Thermo Fisher Scientific Inc. (NYSE:TMO), ServiceNow, Inc. (NYSE:NOW), and Twilio Inc. (NYSE:TWLO) also came into the limelight after posting their earnings reports.

8. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 55

Ford Motor Company (NYSE:F) recently surprised investors by beating expectations. Its solid third-quarter results sent its shares up nearly nine percent in the after-hours trading session on Wednesday, 27 October 2021.

The Detroit, Michigan-based automaker earned 51 cents per share on an adjusted basis, compared to adjusted earnings of 65 cents per share in the same period last year. Analysts were expecting Ford Motor Company (NYSE:F) to earn 27 cents per share.

Revenue for the quarter slipped five percent on a year-over-year basis to $37.5 billion but came in above the consensus forecast of $32.5 billion. Looking forward, Ford Motor Company (NYSE:F) now expects adjusted earnings in the range of $10.5 billion – $11.5 billion for the full year versus its previous forecast between  $9 billion – $10 billion.

7. Xilinx, Inc. (NASDAQ:XLNX)

Number of Hedge Fund Holders: 59

Shares of Xilinx, Inc. (NASDAQ:XLNX) jumped to an all-time high in the after-hours trading session on Wednesday, 27 October 2021, after announcing its fiscal second-quarter results above expectations.

Xilinx, Inc. (NASDAQ:XLNX) reported adjusted earnings of $1.06 per share, up from 82 cents per share in the comparable period of 2020. Analysts were looking for earnings of 86 cents per share.

Revenue for the quarter climbed 22 percent versus last year to reach a record high of $936 million, while surpassing the consensus forecast of $891 million. Xilinx, Inc. (NASDAQ:XLNX) enjoyed growth across its flagship segments.

Revenue from the aerospace & defense, industrial and test, measurement & emulation (AIT) segment surged 13 percent, revenue from the automotive, broadcast and consumer (ABC) segment climbed 70 percent, while revenue from the wired and wireless group (WWG) jumped 42 percent on a year-over-year basis. On the downside, revenue from the data center group (DCG) fell 22 percent in the quarter.

Discussing the results, CEO Victor Peng said in a statement:

“Industry trends continue to drive strong demand for Xilinx products. Core markets are benefiting from multiple tail winds, including the increasing requirements for advanced processing and broad digitalization trends in all industries, that are driving both increased silicon content as well as overall demand. 5G volumes remain strong, led by North America and the Asia Pacific region, across multiple products.”

Like Xilinx, Inc. (NASDAQ:XLNX), investors are also keeping an eye on McDonald’s Corporation (NYSE:MCD), Bristol-Myers Squibb Company (NYSE:BMY), Thermo Fisher Scientific Inc. (NYSE:TMO), ServiceNow, Inc. (NYSE:NOW), and Twilio Inc. (NYSE:TWLO) after they released their financial results.

6. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 62

Shares of The Coca-Cola Company (NYSE:KO) closed higher on Wednesday, 27 October 2021, after posting solid profit and sales for the third quarter. The Georgia-based beverage giant reported adjusted earnings of 65 cents per share versus 55 cents per share in the year-ago quarter.

Operating margin in the quarter rose to 28.9 percent versus 26.6 per share in the comparable period of 2020. In addition, The Coca-Cola Company (NYSE:KO) generated revenue of $10.04 billion, translating to a surge of 16.1 percent when compared to the third quarter of 2020. The results exceeded analysts’ average estimate of 58 cents per share for earnings and $9.77 billion for revenue.

The Coca-Cola Company (NYSE:KO) also updated its profit outlook for 2021. The company expects its adjusted earnings to grow in the range of 15 – 17 percent, compared to its previous growth forecast between 13 – 15 percent. The updated guidance is in line with the consensus forecast of $2.26 per share, which translated to a growth of 15.9 percent.

Speaking on the results, CEO James Quincey said in a statement:

“Our strategic transformation is enabling us to effectively navigate a dynamic environment and emerge stronger from the pandemic.”

5. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 66

Shares of McDonald’s Corporation (NYSE:MCD) rose nearly three percent on Wednesday, 27 October 2021, after announcing better-than-expected results for the third quarter. The results were helped by higher menu prices that balanced the negative impact of rising costs.

The fast-food giant reported adjusted earnings of $2.76 per share, easily beating expectations of $2.46 per share. Revenue came in at $6.2 billion, ahead of the consensus forecast of $6.05 billion. McDonald’s Corporation (NYSE:MCD) had posted adjusted earnings of $2.22 per share on revenue of $5.4 billion for the comparable period of 2020.

Speaking on the results, CEO Chris Kempczinski said:

“Our third quarter results are a testament to our unparalleled scale and agility. Our global comparable sales increased 10% over 2019, which was delivered across an omnichannel experience that is focused on meeting the needs of our customers. We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders.”

4. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 73

Shares of Bristol-Myers Squibb Company (NYSE:BMY) turned red on Wednesday, 27 October 2021, despite beating expectations for the third quarter. The biopharmaceutical giant earned $2 per share on an adjusted basis, up 23 percent from $1.63 per share in the comparable period of 2020. Analysts were looking for earnings of $1.92 per share.

Revenue for the quarter jumped 10 percent on a year-over-year basis to $11.62 billion, just ahead of the consensus forecast of $11.61 billion. The company attributed the latest performance to strong demand for Revlimid, Eliquis, and Opdivo.

If we break down the total revenue by region, U.S. revenue jumped 12 percent on a year-over-year basis to $7.3 billion. In comparison, international revenue rose eight percent to $4.3 billion in the quarter.

Looking forward, Bristol-Myers Squibb Company (NYSE:BMY) expects adjusted earnings in the range of $7.40 – $7.55 per share for the full year, compared to its previous forecast of $7.35 – $7.55 per share.

Commenting on the quarter, CEO Giovanni Caforio said:

“Our strong results reflect increased adoption of our new product portfolio and continued demand growth across all four core therapeutic areas. Our teams advanced the product portfolio and achieved significant regulatory and clinical milestones, including for the fixed-dose combination of relatlimab and nivolumab. Our deep and diverse product pipeline, commercial execution and financial flexibility provide a strong foundation that is enabling the company to bring new medicines that benefit patients with serious unmet needs, drive in-line product performance and deliver sustained growth.”

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 87

Shares of Thermo Fisher Scientific Inc. (NYSE:TMO) made a new 52-week high of $625.99 after announcing its third-quarter profit and sales above expectations. The maker of scientific equipment reported adjusted earnings of $5.76 per share on revenue of $9.33 billion.

Analysts were looking for earnings of $4.68 per share on revenue of $8.38 billion. The results were also better than adjusted earnings of $5.63 per share on revenue of $8.52 Thermo Fisher Scientific Inc. (NYSE:TMO) posted in the comparable period of 2020.

If we look at the performance of its flagship segments, revenue from the life sciences solutions segment rose nine percent to $3.72 billion, revenue from the analytical instruments segment jumped 11 percent to $1.48 billion, while revenue from the laboratory products and services segment increased 12 percent to $3.49 billion in the quarter. In comparison, revenue from the specialty diagnostics segment came in at $1.36 billion, down from $1.43 billion in the year-ago quarter.

Thermo Fisher Scientific Inc. (NYSE:TMO) also raised its financial outlook for the full year. The company now expects adjusted earnings of about $23.37 on revenue of approx. $37.1 billion. The updated guidance is above analysts’ average estimate of $22.21 per share for earnings and $36.1 billion for revenue.

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 91

Shares of ServiceNow, Inc. (NYSE:NOW) slipped nearly two percent in the after-hours trading session on Wednesday, 27 October 2021, despite delivering strong results for the third quarter. The California-based software company reported adjusted earnings of $1.55 per share, up from $1.21 per share in the comparable period of 2020.

Revenue for the quarter came in at $1.51 billion, compared to $1.15 billion in the year-ago quarter. Analysts were expecting ServiceNow, Inc. (NYSE:NOW) to report earnings of $1.39 per share on revenue of $1.48 billion.

If we look at the key growth indicators, the company’s subscription revenue of $1.43 billion and subscription billings of approx. $1.38 billion in the quarter were also ahead of the consensus forecast.

For the fourth quarter, ServiceNow, Inc. (NYSE:NOW) expects subscription revenue of approx. 1.52 billion and billings of about $2.31 billion. This compares to the consensus forecast of 1.51 billion for subscription revenue and $2.31 billion for billings.

Discussing the results, CFO Gina Mastantuono said:

“Q3 was another fantastic quarter with continued outperformance across all of our growth and profitability guidance metrics. The consistency of our results exemplifies the strength of our product portfolio and the team’s focus on building deep customer relationships. We are well positioned as the workflow standard on our journey to becoming a $15+ billion revenue company.”

1. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 98

Twilio Inc. (NYSE:TWLO) recently announced better-than-expected results for the third quarter. However, its fourth-quarter outlook fell short of expectations. The disappointing guidance overshadowed the strong Q3 results, sending Twilio shares down nearly 14 percent in the pre-market trading session on Thursday, 28 October 2021.

The San Francisco-based cloud communications platform expects an adjusted loss in the range of 23 – 26 cents per share for the fourth quarter, wider than a loss of 10 cents per share estimated by analysts.

For the third quarter, Twilio Inc. (NYSE:TWLO) reported an adjusted profit of one cent per share on revenue of $740.2 million. Analysts were looking for an adjusted loss of 14 cents per share on revenue of $681 million.

Twilio Inc. (NYSE:TWLO) had posted adjusted earnings of 4 cents per share on revenue of $448 million for the comparable period of 2020.

Speaking on the results, CEO Jeff Lawson said:

“We delivered another quarter of strong growth at scale in the third quarter as companies continue to turn to Twilio in this digital-first world. We are extremely excited about the next generation of our customer engagement platform, and our newest pillar, Twilio Engage, which will allow companies of all sizes and in any industry to build and optimize hyper-personalized marketing campaigns on every channel for customer acquisition, conversion and retention.”

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Disclosure: None. 10 Stocks That Beat Profit Expectations is originally published on Insider Monkey.