In this article, we will take a look at the 10 stocks that beat the quarterly expectations.
Notable stocks from the tech sector, including Intel Corporation (NASDAQ:INTC), ServiceNow, Inc. (NYSE:NOW) and Xilinx, Inc. (NASDAQ:XLNX), recently posted upbeat financial results.
Shares of ServiceNow and Xilinx gained value following their earnings reports. However, Intel stock fell to a nearly three-month low despite beating profit and sales estimates. Several other stocks, including electric vehicle giant Tesla, Inc. (NASDAQ:TSLA) and healthcare company Abbott Laboratories (NYSE:ABT), also came into the spotlight after releasing their quarterly results.
Let’s have a look at the financial highlights of these companies.
Stocks That Beat the Quarterly Expectations
10. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 26
Shares of Amphenol Corporation (NYSE:APH) closed higher on Wednesday, January 26, 2022, after announcing better-than-expected financial results for the fourth quarter. The manufacturer of interconnect products reported adjusted earnings of 70 cents per share, up 23 percent on a year-over-year basis.
In addition, Amphenol Corporation posted revenue of $3.03 billion, compared to $2.43 billion in the year-ago period. The results were better than analysts’ average estimate of 63 cents per share for earnings and $2.76 billion for revenue.
Looking forward, Amphenol Corporation expects adjusted earnings in the range of 59 – 61 cents per share for the first quarter, translating to growth between 13 – 17 percent from the comparable period of 2021.
Speaking on the results, CEO of Amphenol Corporation, R. Adam Norwitt, said in a statement:
“Sales increased from prior year by a strong 25% in the quarter, with particularly robust growth in the IT data communications, industrial, mobile networks, commercial air, automotive and broadband markets, including contributions from the Company’s acquisition program.”
9. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 40
Shares of Corning Incorporated (NYSE:GLW) jumped to a nearly two-month high on Wednesday, January 26, 2022, after beating profit and sales expectations for the fourth quarter. The manufacturer of glass and industrial products earned 54 cents per share on an adjusted basis, above analysts’ average estimate of 52 cents per share.
In addition, revenue for the quarter jumped 10 percent on a year-over-year basis to $3.68 billion. Analysts were expecting Corning Incorporated to generate revenue of $3.59 billion for the quarter.
Corning Incorporated also issued its financial outlook for the first quarter. It expects adjusted earnings in the range of 48 – 53 cents per share and revenue between $3.5 – $3.7 billion.
Like Corning Incorporated, investors are also closely watching Intel Corporation, ServiceNow, Inc. and Xilinx, Inc., after their earnings reports.
8. Norfolk Southern Corporation (NYSE:NSC)
Number of Hedge Fund Holders: 46
Norfolk Southern Corporation (NYSE:NSC) is one of the leading transportations companies in the U.S. It operates more than 19,000 route miles across 22 states, serving major containers ports in the eastern U.S. It is a major transporter of construction material, metals, chemicals and consumer products.
Shares of Norfolk Southern Corporation slipped over two percent on Wednesday, January 26, 2022, despite announcing better-than-expected financial results for the fourth quarter.
Norfolk Southern Corporation reported earnings of $3.12 per share, up from $2.64 per share in the year-ago period. Revenue for the quarter jumped 10.8 percent versus last year to $2.85 billion. The results exceeded analysts’ average estimate of $3.04 per share for earnings and $2.83 billion for revenue.
Discussing the latest performance, CEO of Norfolk Southern Corporation, James Squires, said:
“The fourth quarter marks the successful completion of the ambitious three-year strategic plan we launched in 2019. We achieved significant additional improvement in productivity while overcoming the headwinds associated with the pandemic and global supply chain disruptions.”
7. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 55
Shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) turned green in the after-hours trading session on Wednesday, January 26, 2022, after delivering solid profit and sales for the fourth quarter. The results were mainly driven by higher demand for its cystic fibrosis treatment Trikafta and the launch of Kaftrio in Europe.
Vertex Pharmaceuticals Incorporated earned $3.37 per share on an adjusted basis, up from $2.51 per share in the year-ago quarter and above expectations of $3.29 per share.
In addition, total product revenue for the quarter increased to $2.07 billion versus $1.63 billion for the comparable period of 2020. Analysts were expecting Vertex Pharmaceuticals Incorporated to post revenue of $2 billion.
The company also issued its sales outlook for 2022. Vertex Pharmaceuticals Incorporated expects product revenue in the range of $8.4 billion to $8.6 billion for the full year.
Like Vertex Pharmaceuticals Incorporated, Intel Corporation, ServiceNow, Inc. and Tesla, Inc., were also gaining attention after posting their financial results.
6. Anthem, Inc. (NYSE:ANTM)
Number of Hedge Fund Holders: 59
Anthem, Inc. (NYSE:ANTM) recently announced its fourth-quarter financial results above expectations. However, the health insurer issued a weak profit outlook for 2022, sending its shares down more than two percent on Wednesday, January 26, 2022.
The Indiana-based health insurance company reported adjusted earnings of $5.14 per share, beating estimates of $5.11 per share. In addition, Anthem, Inc. posted revenue of $36.58 billion, up 14.9 percent versus last year and above analysts’ average forecast of $36.50 billion.
Looking forward, Anthem, Inc. expects to report a minimum adjusted profit of $28.25 per share for the full year. However, it came in below the consensus forecast of $28.65 per share.
Among other updates, Anthem, Inc. reported that it repurchased 1.3 million shares during the fourth quarter for $522 million. In addition, the operating cash flow decreased to $1.7 billion from $3.8 billion in the year-ago period.
Speaking on the results, CEO Gail Boudreaux said in a statement:
“We begin 2022 with ongoing momentum across all our businesses, and we’re confident in our ability to deliver earnings growth consistent with our long-term targeted range as we innovate for consumers and advance our digital platform for health.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Shares of Tesla, Inc. slightly moved down in the pre-market trading session on Thursday, January 27, 2022, even after posting record financial results for the fourth quarter. The electric vehicle giant reported adjusted earnings of $2.54 per share, substantially higher than 80 cents per share in the fourth quarter of 2020.
Revenue for the quarter jumped 65 percent versus last year to $17.7 billion. Analysts were expecting Tesla, Inc. to post earnings of $2.26 per share on revenue of $16.35 billion.
The latest quarterly performance was mainly driven by record deliveries during the fourth quarter. Tesla, Inc. delivered 308,600 electric vehicles in Q4 versus 305,840 in the comparable period of 2020.
The company also issued its vehicles deliveries guidance for 2022. Tesla, Inc. expects its vehicle deliveries to increase by at least 50 percent on a year-over-year basis.
4. Xilinx, Inc. (NASDAQ:XLNX)
Number of Hedge Fund Holders: 62
Shares of Xilinx, Inc. jumped more than seven percent in the pre-market trading session on Thursday, January 27, 2022, after posting a solid profit for its fiscal third quarter.
Xilinx, Inc. earned $1.29 per share on an adjusted basis, compared to 78 cents per share in the year-ago quarter and above expectations of 98 cents per share. In addition, its quarterly revenue jumped 26 percent on a year-over-year basis to $1.01 billion despite supply chain disruptions.
Speaking on the results, CEO of Xilinx, Inc., Victor Peng, said:
“Xilinx achieved another record quarter and surpassed $1 billion in quarterly sales for the first time in the company’s history. While we were unable to fully satisfy customer needs, our results demonstrate our team’s relentless focus and execution in supporting our customers as well as possible given the extremely tight supply conditions.”
3. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 63
Abbott Laboratories recently announced better-than-expected financial results for the fourth quarter. However, its profit outlook for the fourth quarter missed expectations, sending its shares down nearly three percent on Wednesday, January 26, 2022.
The medical devices and health care company earned $1.32 per share on an adjusted basis, above expectations of $1.21 per share. Revenue came in at $11.47 billion, while analysts were expecting Abbott Laboratories to generate revenue of $10.71 billion.
Looking at the performance of key segments, nutrition revenue rose 5.5 percent, diagnostic revenue increased 2.9 percent, pharmaceuticals revenue increased 4.9 percent and medical devices revenue climbed 15.1 percent in the quarter.
Moving forward, Abbott Laboratories expects an adjusted profit of at least $4.70 per share for 2022, below analysts’ average forecast of $4.78 per share.
Discussing the results, CEO Robert Ford said:
“We achieved more than 40 percent EPS growth, exceeding the baseline EPS guidance we set at the beginning of last year and, importantly, continued to advance our new product pipeline across the portfolio.”
2. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Shares of Intel Corporation turned red in the pre-market trading session on Thursday, January 27, 2022, despite beating financial expectations for the fourth quarter. The chip giant earned $1.09 per share, down from $1.48 per share last year but above expectations of 90 cents per share.
In addition, Intel Corporation posted revenue of $20.53 billion, up 3 percent versus last year and above analysts’ average estimate of $18.33 billion. Revenue from Intel’s largest segment, the client computing group, fell seven percent on a year-over-year basis to $10.1 billion. On the bright side, revenue from the data center group jumped 20 percent to $7.3 billion.
Intel Corporation also issued its financial outlook for the first quarter. It expects adjusted earnings of around 80 cents per share on revenue of approx. $18.3 billion for the current quarter.
Commenting on the results, CEO of Intel Corporation, Pat Gelsinger, said:
“Q4 represented a great finish to a great year. We exceeded top-line quarterly guidance by over $1 billion and delivered the best quarterly and full-year revenue in the company’s history. Our disciplined focus on execution across technology development, manufacturing, and our traditional and emerging businesses is reflected in our results.”
1. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 87
ServiceNow, Inc. is best known for its cloud-based solutions that help enterprises manage digital workflows. Its cloud-based platform manages and automates services for day-to-day operations. In short, the company’s solutions enable more intelligent and faster ways to make a workflow.
Shares of ServiceNow, Inc. jumped more than 14 percent in the pre-market trading session on Thursday, January 27, 2022, after delivering impressive profit and sales for the fourth quarter.
ServiceNow, Inc. reported adjusted earnings of $1.46 per share for the three months ended December 31, compared to $1.17 per share in the same period of 2020. Revenue for the quarter increased to $1.61 billion, up from $1.25 billion in the comparable period last year.
Subscription revenue accounted for most of the quarterly sales, climbing 29 percent on a year-over-year basis to $1.52 billion. The results easily exceeded analysts’ average forecast of $1.43 per share for earnings and $1.6 billion for revenue.
Looking forward, ServiceNow, Inc. expects subscription revenue in the range of $1.61 to $1.615 billion for the first quarter. For the full year, it expects subscription revenue between $7.02 – $7.04 billion, compared to expectations of $7.02 billion.
Speaking on the results, CFO of ServiceNow, Inc., Gina Mastantuono, said:
“Q4 was an outstanding quarter closing out an already phenomenal year of outperformance. The company is firing on all cylinders and we enter 2022 with tremendous momentum. We expect constant currency subscription revenue growth to accelerate year‑over‑year in Q1, setting us up for another strong year and putting us well on our way to becoming a $15 billion plus revenue company.”
You can also take a peek at Billionaire Michael Hintze Portfolio: Top 10 Stock Picks and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.
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This article is originally published at Insider Monkey.
