In this article, we will take a look at the 10 stocks under investors’ radar after releasing their earnings reports.
The third-quarter earnings season will begin next month. However, some companies have been reporting financial results according to their own fiscal calendar.
For instance, Darden Restaurants, Inc. (NYSE:DRI), Lennar Corporation (NYSE:LEN), Accenture plc (NYSE:ACN), Costco Wholesale Corporation (NASDAQ:COST), and NIKE, Inc. (NYSE:NKE) were among the notable stocks that recently announced their earnings reports. Shares of both Darden and Costco jumped to new highs, while NIKE stock moved down following the results.
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To discuss the detailed performance of these companies, let’s start our list of 10 stocks under investors’ radar after releasing their earnings reports.
Stocks Under Investors’ Radar After Releasing their Earnings Reports
10. Progress Software Corporation (NASDAQ:PRGS)
Number of Hedge Fund Holders: 16
Progress Software Corporation (NASDAQ:PRGS) made a new 52-week high of $53.86 on Friday, 24 September 2021, after delivering solid results for its fiscal third quarter. The software company reported adjusted earnings of $1.18 per share, up from 78 cents per share in the comparable period of 2020.
Revenue for the quarter climbed 38 percent on a year-over-year basis to $152.6 million. The results crushed the consensus forecast of 82 cents per share for earnings and $130.9 million for revenue.
Progress Software Corporation also raised the financial outlook for its fiscal year 2021. It expects adjusted profit in the range of $3.68 – $3.70 per share, compared to its earlier forecast of $3.46 – $3.50 per share. In addition, revenue for the full year is now expected to come between $548 million – $552 million versus its previous guidance of $529 million – $535 million.
Like Progress Software Corporation, analysts are also paying attention to Darden Restaurants, Inc., Lennar Corporation, Accenture plc (NYSE:ACN), Costco Wholesale Corporation, and NIKE, Inc. following their earnings reports.
9. AAR Corp. (NYSE:AIR)
Number of Hedge Fund Holders: 24
AAR Corp. (NYSE:AIR) is engaged in providing aviation services to government and commercial clients worldwide. It recently announced better-than-expected financial results for its fiscal first quarter ended 31 August 2021.
The company reported adjusted earnings of 52 cents per share, beating the consensus forecast of 48 cents per share. AAR Corp. had reported adjusted earnings of 17 cents per share in the comparable period last year.
Revenue for the quarter jumped 14 percent on a year-over-year basis to $455 million, mainly driven by higher revenue from commercial operations. Analysts were expecting AAR Corp. to post revenue of $438 million.
Speaking on the results, CEO John M. Holmes said:
“We had a very strong start to the year across our commercial business. We saw robust performance in our MRO operations and continued recovery in our parts activities. We also secured new government and commercial program contract awards while adding another exclusive new parts distribution agreement, which we expect to contribute to our long-term growth.”
8. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 37
Shares of General Mills, Inc. (NYSE:GIS) rose to a one-month high after reporting financial results for its fiscal first quarter on Wednesday, 22 September 2021. The food company reported adjusted earnings of 99 cents for the quarter, marginally down from $1 per share in the comparable period last year.
Revenue came in at $4.54 billion, compared to $4.36 billion in the same period last year. Analysts were expecting General Mills, Inc. to report earnings of 89 cents per share on $4.30 billion in revenues.
General Mills, Inc. also reiterated the profit outlook for its fiscal year 2022. The company expects its adjusted earnings to come at the higher end of its initial guidance in the range of flat to -2 percent.
7. Vail Resorts, Inc. (NYSE:MTN)
Number of Hedge Fund Holders: 40
Vail Resorts, Inc. (NYSE:MTN) is a well-known ski resort company. It operates popular ski destinations across the U.S. and Canada. The company recently announced a narrower-than-expected loss for its fiscal fourth quarter, helped by a strong surge in skiers’ visits.
Shares of Vail Resorts, Inc. hit an all-time high of $352.38 on Friday, 24 September 2021, following the results. The company reported a loss of $3.49 per share, compared to a loss of $3.82 per share in the year-ago quarter.
Revenue climbed to $204.2 million, significantly higher than $77.2 million in the same period of 2020. Analysts were expecting Vail Resorts, Inc. to report a loss of $3.53 per share on revenue of $170 million.
Commenting on the results, CEO Rob Katz said in a statement:
“We are pleased with the strong demand across our North American summer operations during the fourth quarter, which exceeded our expectations and which we believe highlights our guests’ continued affinity for outdoor experiences. In Australia, we experienced strong demand trends at the beginning of the 2021 Australian ski season. However, subsequent COVID-19 related stay-at-home orders and temporary resort closures negatively impacted financial results for the fourth quarter by approximately $8 million relative to our guidance expectations issued on June 7, 2021.”
Looking forward, Vail Resorts, Inc. expects a loss of $156 million – $136 million for its fiscal first quarter. On the bright side, the company projected a profit of $278 million – $349 million for its fiscal year 2022.
6. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 41
Trip.com Group Limited (NASDAQ:TCOM) recently announced better-than-expected financial results for the second quarter, helped by a strong recovery in its domestic Chinese market.
The online travel company reported adjusted earnings of 18 cents per share for the three months ended 30 June 2021, compared to a loss of 27 cents per share in the comparable period of 2020. Analysts were expecting Trip.com Group Limited to report earnings of 6 cents per share.
Revenue for the quarter climbed 86 percent on a year-over-year basis to $912 million, beating the consensus forecast of $878 million. If we see the performance of key segments, accommodation reservation revenue jumped 96 percent to $380 million, while transportation ticketing revenue rose 80 percent to $320 million. In comparison, corporate travel revenue skyrocketed 141 percent to $60 million in the quarter.
Speaking on the results, CEO James Liang said:
“Overall, the Chinese domestic travel market has been encouraging, and we see great potential in international markets. Going forward, we will continue to be adaptive and responsive to the changing market conditions and the evolving demands of post-pandemic travelers.”
5. Darden Restaurants, Inc. (NYSE:DRI)
Number of Hedge Fund Holders: 44
Shares of Darden Restaurants, Inc. rallied to an all-time high of $164.28 on Thursday, 23 September 2021, after delivering impressive results for its fiscal first quarter. The Florida-based restaurant operator reported earnings of $1.76 per share for the three months ended 29 August 2021, well above 28 cents per share in the comparable period of 2020.
In addition, Darden Restaurants, Inc. posted revenue of $2.31 billion, translating to a surge of 51 percent on a year-over-year basis. The results surpassed the consensus forecast of $1.64 per share for earnings and $2.240 billion for revenue.
Darden Restaurants, Inc. also updated the financial outlook for its fiscal year 2022. It expects earnings in the range of $7.25 – $7.60 per share, in line with the consensus forecast of $7.43 per share. Revenue for the full year is expected to come between $9.4 billion – $9.6 billion, compared to analysts’ average estimate of $9.408 billion.
4. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders: 50
Lennar Corporation is a leading homebuilder in the United States. It recently announced mixed financial results for its fiscal third quarter ended 31 August 2021. The company reported earnings of $4.52 per share, more than doubled from $2.12 per share in the year-ago quarter.
Revenue came in at $6.9 billion, compared to $5.9 billion in the same period last year. Analysts were expecting Lennar Corporation to report earnings of $3.26 per share on revenue of $7.1 billion. Home deliveries in the quarter rose 10 percent to 15,199, while gross margin on home sales improved to 27.3 percent.
Speaking on the results, CEO Stuart Miller said:
“During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future. As a result, our third quarter deliveries of 15,199 homes were about 600 homes below the low end of our guidance. Additionally, we are adjusting our fourth quarter delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint.”
3. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 52
Accenture plc (NYSE:ACN) recently came into the limelight after announcing financial results for its fiscal fourth quarter. The Irish IT services company reported earnings of $2.20 per share for the three months ended 31 August 2021, up from $1.99 per share in the comparable period of 2020.
Revenue came in at $13.4 billion, up 24 percent versus the year-ago quarter. Analysts were expecting Accenture plc (NYSE:ACN) to report earnings of $2.19 per share on revenue of $13.42 billion.
If we look at the performance of key segments, consulting revenue in the quarter jumped 29 percent on a year-over-year basis to $7.31 billion, while outsourcing revenue rose 19 percent to $6.11 billion.
Praising the results, CEO Julie Sweet said in a statement:
“We are very proud of our outstanding fiscal 2021 financial performance, reflecting growth significantly above the market and strong momentum heading into fiscal 2022. Our results reflect the dedication and hard work of our 624,000 incredible people, who are laser-focused on creating tangible value for our clients, innovating with our ecosystem, and being the trusted partner of choice on our clients’ transformation journeys.”
Accenture plc (NYSE:ACN) also released the financial outlook for its fiscal year 2022. It expects earnings in the range of $9.90 – $10.18 per share and revenue growth between 12 – 15 percent for the full year.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 54
Shares of Costco Wholesale Corporation hit a new 52-week high of $468.72 on Friday, 24 September 2021, after announcing record revenue for its fiscal fourth quarter. The company posted revenue of $61.44 billion for the three months ended 29 August 2021, up 17.5 percent from $53.38 billion in the year-ago quarter.
In addition, Costco Wholesale Corporation reported earnings of $3.76 per share, compared to $3.51 per share in the comparable period of 2020. The results exceeded the consensus forecast of $3.58 per share for earnings and $61.41 billion for revenue.
Speaking on the results, CFO Richard Galanti said Costco is once again putting limits on purchases of certain products to ensure the availability of essential items, such as toilet paper and bottled water, across its stores. The latest announcement came amid resurgences in Covid-19 cases that could lead people to buy essential items in bulk, as they did last year.
1. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 67
NIKE, Inc. recently announced a better-than-expected profit for its fiscal first quarter, but its revenue fell short of expectations. As a result, NIKE shares fell more than 6 percent on Friday, 24 September 2021.
The athletic shoes and clothing retailer reported earnings of $1.16 per share for the three months ended 31 August 2021, up from 95 cents per share in the same period last year. Analysts were expecting NIKE, Inc. to post earnings of $1.12 per share.
Revenue came in at $12.2 billion, up 16 percent from $10.6 billion in the comparable period of 2020. However, it was marginally down from the consensus forecast of $12.5 billion. NIKE, Inc. said that direct sales in the quarter rose 28 percent, while digital sales jumped 29 percent.
Commenting on the quarter, CFO Matt Friend said:
“NIKE is a growth company with a market opportunity as large as it’s ever been. Our Q1 results illustrate how NIKE’s Consumer Direct Acceleration strategy continues to fuel growth and transform our long-term financial model.”
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This article is originally published at Insider Monkey.
