11 Companies Drawing Attention on Quarterly Reports

In this article, we will take a look at the 11 companies drawing attention on quarterly reports.

Stocks from the communication services and energy sectors, including Electronic Arts Inc. (NASDAQ:EA), Roblox Corporation (NYSE:RBLX) and Occidental Petroleum Corporation (NYSE:OXY), were seen making big moves after releasing their earnings reports.

Shares of Electronic Arts and Occidental Petroleum rose after beating financial expectations for their respective quarter. On the other hand, Roblox stock initially fell but rebounded after the opening bell on Wednesday, May 11, despite posting a wider-than-expected loss for Q1.

Several other companies, including building materials manufacturer Builders FirstSource, Inc. (NYSE:BLDR) and software company Unity Software Inc. (NYSE:U), also came into the spotlight after releasing their financial results.

Companies Drawing Attention on Quarterly Reports

11. Alcon Inc. (NYSE:ALC)

Number of Hedge Fund Holders: 21

Shares of Alcon Inc. (NYSE:ALC) rose nearly five percent in the after-hours trading session on Tuesday, May 10, 2022, following its upbeat financial performance for the first quarter. The eye-care products maker reported adjusted earnings of 68 cents per share, up from 49 cents per share in the same period of 2021.

Revenue for the quarter increased 14 percent on a year-over-year basis to $2.2 billion. Analysts were expecting Alcon Inc. (NYSE:ALC) to post earnings of 49 cents per share on revenue of $2.04 billion.

Alcon Inc. (NYSE:ALC) also released its segment-wise sales performance. Its Surgical revenue for the quarter jumped 17 percent to $1.3 billion, while Vision Care revenue increased 14 percent to $0.9 billion.

Looking forward, Alcon Inc. (NYSE:ALC) continues to expect adjusted earnings in the range of $2.35 – $2.45 per share and revenue between $8.7 – $8.9 billion for the full year.

Discussing the results, CEO David J. Endicott said in a statement:

“While we are pleased with these results, we continue to expect broader headwinds, including inflation and foreign exchange pressures, to persist. Despite this, we are increasing our constant currency growth outlook for 2022 based on our strong underlying business and growing market shares.”

10. GLOBALFOUNDRIES Inc. (NASDAQ:GFS)

Number of Hedge Fund Holders: 23

GLOBALFOUNDRIES Inc. (NASDAQ:GFS) posted solid profit and sales for the first quarter along with an impressive outlook for the second quarter. The promising results sent the company’s shares up nearly four percent in the extended trading session on Tuesday, May 10, 2022.

The semiconductor contract manufacturing company earned 42 cents per share on an adjusted basis, topping expectations of 23 cents per share. In addition, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) posted revenue of $1.94 billion, up 37 percent on a year-over-year basis and above expectations of $1.90 billion.

For the second quarter, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) guided for adjusted earnings in the range of 43 – 48 cents per share and revenue between $1.96 – $1.99 billion. The outlook is above the consensus of 27 cents per share for earnings and $1.93 billion for revenue.

Like GLOBALFOUNDRIES Inc. (NASDAQ:GFS), investors are also closely watching Electronic Arts Inc. (NASDAQ:EA), Roblox Corporation (NYSE:RBLX) and Occidental Petroleum Corporation (NYSE:OXY) after their quarterly reports.

9. Sysco Corporation (NYSE:SYY)

Number of Hedge Fund Holders: 25

Shares of Sysco Corporation (NYSE:SYY) closed higher on Tuesday, May 10, 2022, after announcing better-than-expected financial results for its fiscal third quarter. The Texas-based distributor of food products reported adjusted earnings of 71 cents per share, significantly higher than 22 cents per share in the year-ago period.

Revenue also climbed 42.9 percent versus last year to $16.90 billion. Analysts were expecting Sysco Corporation (NYSE:SYY) to post earnings of 55 cents per share on revenue of $15.91 billion.

For its fiscal year 2022, Sysco Corporation (NYSE:SYY) raised its adjusted earnings outlook to a range of $3.16 – $3.26 per share, from its previous guidance of $3 – $3.10 per share. The updated projection is better than the consensus of $3.08 per share.

8. Fox Corporation (NASDAQ:FOX)

Number of Hedge Fund Holders: 27

Shares of Fox Corporation (NASDAQ:FOX) hit a new 52-week low of $28.96 on Tuesday, May 10, 2022, after posting mixed financial performance for its fiscal third quarter. The New York-based mass media company reported adjusted earnings of 81 cents per share, missing the consensus of 87 cents per share.

On the bright side, the quarterly revenue of $3.46 billion rose seven percent on a year-over-year basis and surpassed expectations. Fox Corporation (NASDAQ:FOX) also disclosed the sales performance of its flagship segments. Its affiliate revenue increased 5 percent to $1.8 billion, advertising revenue rose 9 percent to $1.3 billion and other revenue jumped 18 percent to $351 million in the quarter.

Speaking on the results, CEO Lachlan Murdoch said in a statement:

“FOX’s third quarter results again demonstrate our capacity to deliver sustained and consistently strong revenue growth. Our 7% topline growth in the quarter was propelled by pricing strength in both distribution and advertising revenues across our leadership brands, complemented by the powerful momentum we continue to see at Tubi.”

7. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 36

Shares of Unity Software Inc. (NYSE:U) plummeted to an all-time low in the after-hours trading session on Tuesday, May 10, 2022, after posting mixed first-quarter results and a disappointing sales outlook for the second quarter.

Unity Software Inc. (NYSE:U) reported an adjusted loss of 8 cents per share, in line with the expectations. Revenue for the quarter jumped 36 percent on a year-over-year basis to $320.1 million but fell below the expectations of $321.49 million.

If we look at the sales performance of flagship segments of Unity Software Inc. (NYSE:U), Create Solutions revenue climbed 65 percent to $116.4 million, while Operate Solutions revenue jumped 26 percent to $184 million in the quarter. In comparison, Strategic Partnerships and Other revenue increased 11 percent to $19.7 million.

Looking forward, Unity Software Inc. (NYSE:U) expects revenue in the range of $290 – $295 million for the second quarter and between 1.35 – $1.45 billion for the full year. The outlook missed the consensus of $361 million for Q2 and $1.5 billion for fiscal 2022.

Like Unity Software Inc. (NYSE:U), Electronic Arts Inc. (NASDAQ:EA), Roblox Corporation (NYSE:RBLX) and Occidental Petroleum Corporation (NYSE:OXY) were also spotted making big moves following their quarterly reports.

6. Warner Music Group Corp. (NASDAQ:WMG)

Number of Hedge Fund Holders: 38

Shares of Warner Music Group Corp. (NASDAQ:WMG) plunged to a new low of $25.35 on Tuesday, May 10, 2022, after missing profit expectations for its fiscal second quarter. The New York-based music company reported earnings of 18 cents per share, below analysts’ average estimate of 21 cents per share.

In addition, Warner Music Group Corp. (NASDAQ:WMG) posted revenue of $1.376 billion, up 10 percent over the same period of 2021 but slightly below the consensus of $1.38 billion. If we look at the performance of its key segments, recorded music revenue rose 8 percent to $1.15 billion, music publishing revenue jumped 20 percent to $230 million and digital revenue increased 8 percent to $931 billion in the quarter.

Commenting on the results, CEO Steve Cooper said in a statement:

“The underlying health and resilience of our business is reflected in the diversified revenue growth that we delivered in the second quarter. While our core business continues to flourish, new growth vectors are constantly emerging.”

5. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 41

Shares of Electronic Arts Inc. (NASDAQ:EA) turned green in the pre-market trading session on Wednesday, May 11, 2022, after announcing its fiscal fourth-quarter results above expectations.

Electronic Arts Inc. (NASDAQ:EA) reported adjusted earnings of $1.46 per share, topping expectations of $1.43 per share. The quarterly revenue of $1.83 billion also surpassed analysts’ average estimate of $1.77 billion.

Among other updates, Electronic Arts Inc. (NASDAQ:EA) reported that it repurchased 2.5 million worth of its common stock during the quarter. Moreover, it announced a quarterly dividend of 19 cents per share, up 12 percent on a sequential basis.

On the downside, Electronic Arts Inc. (NASDAQ:EA) offered a weak sales outlook for the current quarter. The Redwood City-based videogame publisher expects adjusted sales in the range of $1.20 – $1.25 billion, well below expectations of $1.44 billion.

4. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 58

Shares of Occidental Petroleum Corporation (NYSE:OXY) slightly moved up in the pre-market trading session on Wednesday, May 11, 2022, after swinging to a profit in the first quarter. The Houston-based oil producer primarily benefitted from higher commodity prices, as fuel prices rose sharply following the Russia-Ukraine war.

Occidental Petroleum Corporation (NYSE:OXY) reported adjusted earnings of $2.12 per share, compared to an adjusted loss of 15 cents per share in the year-ago period. Revenue for the quarter increased to $8.5 billion, from $5.5 billion in the comparable period of 2021. The results easily surpassed analysts’ average estimate of $2.03 per share for earnings and $8.08 billion for revenue.

Praising the results, CEO of Occidental Petroleum Corporation (NYSE:OXY), Vicki Hollub, said in a statement:

“We are pleased with our employees’ outstanding performance in the first quarter in meeting our production guidance and, in accordance with our full-year capital plan, preparing our global operations to deliver increased barrels of oil and natural gas to the market for the remainder of the year.”

3. Builders FirstSource, Inc. (NYSE:BLDR)

Number of Hedge Fund Holders: 59

Shares of Builders FirstSource, Inc. (NYSE:BLDR) closed higher on Tuesday, May 10, 2022, after its first-quarter profit rose sharply on a year-over-year basis. The Dallas-based manufacturer of building materials earned $3.90 per share on an adjusted basis, significantly higher than $1.42 per share in the year-ago period.

Revenue came in at $5.68 billion, up 36.1 percent over the same period of 2021. Analysts were expecting Builders FirstSource, Inc. (NYSE:BLDR) to report earnings of $1.98 per share on revenue of $4.60 billion.

Speaking on the results, CFO Peter Jackson said in a statement:

“We remain committed to a balanced approach to capital deployment through 2022 and beyond as we leverage our strong cash flow to pursue additional accretive investments in our operations while executing against our share repurchase authorizations. We expect to generate free cash flow of $2.0 billion to $2.4 billion in 2022, reflecting disciplined working capital management and our ability to capitalize on our industry-leading product portfolio.”

2. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 61

Roblox Corporation (NYSE:RBLX) recently announced weak financial results for the first quarter. The disappointing performance sent Roblox shares down to an all-time low in the pre-market trading session on Wednesday, May 11, 2022.

The California-based video game developer reported a loss of 27 cents per share, wider than analysts’ average estimate for a loss of 22 cents per share. In addition, Roblox Corporation (NYSE:RBLX) posted revenue of $537.1 million, up 39 percent over the year-ago quarter but well below the consensus of $639.5 million.

Among other updates, Roblox Corporation (NYSE:RBLX) reported that booking for the quarter slipped 3 percent versus last to $631.2 million. In addition, average daily active users in the quarter jumped 28 percent on a year-over-year basis to 54.1 million but came in slightly below the expectations of 55 million.

Commenting on the quarter, CEO David Baszucki said:

“We remained focused on delivering our innovation roadmap to unlock the full potential of the Roblox platform and drive long-term returns for investors. Over the past two quarters, we have launched a number of notable innovations including spatial voice and layered clothing that will continue driving user growth, engagement and monetization.”

1. TransDigm Group Incorporated (NYSE:TDG)

Number of Hedge Fund Holders: 64

Shares of TransDigm Group Incorporated (NYSE:TDG) rose nearly four percent on Tuesday, May 10, 2022, after an upbeat financial performance for its fiscal second quarter. The aerospace manufacturing company reported adjusted earnings of $3.86 per share, up from $2.58 per share in the same period of 2021.

Revenue for the quarter increased 11 percent versus last year to $1.327 billion. Analysts were expecting TransDigm Group Incorporated (NYSE:TDG) to report earnings of $3.69 per share on revenue of $1.31 billion.

Updating investors on stock repurchases, TransDigm Group Incorporated (NYSE:TDG) reported that it bought back $667 million worth of its shares during the quarter. In addition, the company said that it is not providing its fiscal 2022 outlook due to uncertainty surrounding its commercial end markets.

Speaking on the results, CEO Kevin Stein said:

“It is encouraging that the global commercial aerospace recovery continues to steadily progress forward. As we expected, this recovery is not linear as the world experiences new COVID variants and certain countries deploy strict lockdown policies. However, despite these hurdles, the global commercial aerospace recovery is proceeding, led primarily by the pent-up demand for domestic leisure travel – though improving trends in international air traffic and business air travel are a positive.”

You can also take a peek at 11 Best Video Game Stocks To Invest In and 10 Favorite Stocks of Dan Loeb’s Third Point.

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Disclosure: None. 11 Companies Drawing Attention on Quarterly Reports is originally published on Insider Monkey.