In this article, we will take a look at the 11 key earnings reports to watch.
Notable tech companies, including Intuit Inc. (NASDAQ:INTU), Dell Technologies Inc. (NYSE:DELL) and Block, Inc. (NYSE:SQ), released their quarterly financial reports last week.
If we look at their price actions, Dell and Intuit shares turned red after missing profit expectations for their respective quarters. On the other hand, Block shares climbed over 26 percent after posting upbeat profit and sales.
Several other companies, including e-commerce giant Alibaba Group Holding Limited (NYSE:BABA) and online used car retailer Carvana Co. (NYSE:CVNA), also traded on heavy volume after releasing their financial results.
Key Earnings Reports to Watch
11. MasTec, Inc. (NYSE:MTZ)
Number of Hedge Fund Holders: 30
Shares of MasTec, Inc. (NYSE:MTZ) recently fell to a nearly one-year low after announcing lower-than-expected revenue for the fourth quarter. The Florida-based engineering and construction company generated revenue of $1.8 billion, below the consensus of $1.88 billion.
On the bright side, MasTec, Inc. reported adjusted earnings of $1.35 per share, above analysts’ average estimate of $1.29 per share. Looking forward, the company projected an adjusted loss of approx. 12 cents per share on revenue of around $1.8 billion for the first quarter.
MasTec, Inc. cited multiple factors, including project delays and startup costs, for the projected loss in the current quarter. Nevertheless, the company’s outlook for the full year is promising. It expects earnings of approx. $3.58 per share on record revenue of $9.95 billion for FY 2022.
Speaking on the results, CEO Jose Mas said in a statement:
“In late 2020, a year with only $6.3 billion in revenue, we put out a long-term goal of $10 billion in revenue. While ambitious at the time, during the fourth quarter of 2021, less than 12 months later, we reiterated that revenue goal. Today, I am proud that our formal 2022 guidance now approximates $10 billion in annual revenue.”
10. Sempra (NYSE:SRE)
Number of Hedge Fund Holders: 31
Shares of Sempra (NYSE:SRE) rose over five percent on Friday, February 25, 2022, after posting its fourth-quarter profit and sales above expectations. The energy infrastructure company reported adjusted earnings of $2.16 per share, compared to $2.28 per share in the year-ago period.
In addition, Sempra posted revenue of $3.84 billion, up from $3.17 billion in the fourth quarter of 2020. The results exceeded analysts’ average estimate of $2 per share for earnings and $3.55 billion for revenue.
Sempra also reaffirmed its earnings outlook for the current fiscal year. It continues to expect earnings in the range of $8.10 – $8.70 per share for 2022. In addition, the company guided for earnings between $8.60 – $9.20 per share for 2023.
Like Sempra, investors are also closely watching Dell Technologies Inc., Intuit Inc. and Block, Inc. following their financial results.
9. Zscaler, Inc. (NASDAQ:ZS)
Number of Hedge Fund Holders: 31
Shares of Zscaler, Inc. (NASDAQ:ZS) plummeted nearly 16 percent on Friday, February 25, 2022, despite posting upbeat financial performance for its fiscal second quarter. The cloud security company reported adjusted earnings of 13 cents per share, up from 10 cents per share in the year-ago period.
Revenue for the quarter came in at $255.6 million, translating to a surge of 63 percent on a year-over-year basis. Analysts were expecting Zscaler, Inc. to report earnings of 11 cents per share on revenue of $241.56 million.
For the third quarter, Zscaler, Inc. guided for earnings in the range of 10 – 11 cents per share on revenue of $270 – $272 million. This compares to the consensus forecast of 11 cents per share for earnings and $256.7 million for revenue.
Commenting on the quarter, CEO Jay Chaudhry said in a statement:
“Driven by continued demand for our Zero Trust security platform, we delivered strong results for the second quarter, with our year-over-year revenue growth rate reaching its highest level in three years, even as we surpassed $1 billion in annualized revenue.”
8. Etsy, Inc. (NASDAQ:ETSY)
Number of Hedge Fund Holders: 47
Shares of Etsy, Inc. (NASDAQ:ETSY) climbed over 16 percent on Friday, February 25, 2022, after announcing better-than-expected profit and sales for the fourth quarter. The Brooklyn-based e-commerce company reported earnings of $1.11 per share, easily topping the consensus of 79 cents per share.
In addition, Etsy, Inc. posted revenue of $717.14 million, up 16.2 percent versus last year and higher than $685.45 million projected by analysts. Among other updates, the company announced that active buyers on the platform reached 96.3 million at the end of Q4.
Etsy, Inc. also issued its revenue outlook for the first quarter. It expects revenue in the range of $565 – $590 million, lower than analysts’ average estimate of $630 million.
7. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 52
Autodesk, Inc. (NASDAQ:ADSK) recently delivered impressive financial results for its fiscal fourth quarter. The software company earned $1.50 per share on an adjusted basis, compared to $1.18 per share in the year-ago period.
Revenue for the quarter jumped 17 percent on a year-over-year basis to $1.21 billion. Analysts expected Autodesk, Inc. to report earnings of $1.44 per share on revenue of $1.19 billion.
Autodesk, Inc. also released the sales performance of its business segments. Its subscription plan revenue jumped 18 percent to $1.12 billion, while Maintenance plan revenue fell 25 percent to $23 million in the quarter.
Moving forward, Autodesk, Inc. guided for adjusted earnings in the range of $1.30 – $1.36 per share for the current quarter and between $6.46 – $6.83 per share for its FY 2023.
Like Autodesk, Inc., Dell Technologies Inc., Intuit Inc. and Block, Inc. also came into the limelight after posting their earnings reports.
6. DISH Network Corporation (NASDAQ:DISH)
Number of Hedge Fund Holders: 54
Shares of DISH Network Corporation (NASDAQ:DISH) recently rose to a one-month high despite its mixed-financial performance for the fourth quarter. The Colorado-based television services provider reported earnings of 87 cents per share, significantly lower than $1.24 per share in the year-ago period.
Revenue for the quarter also slipped 2.4 percent on a year-over-year basis to $4.45 billion. Analysts were expecting DISH Network Corporation to report earnings of 87 cents per share on revenue of $4.47 billion.
Among other updates, DISH Network Corporation reported that it lost 273,000 pay-TV subscribers and 245,000 retail wireless subscribers during the fourth quarter. At the end of Q4, its total pay-TV subscribers stood at 10.71 million.
5. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders: 56
Carvana Co. recently announced a wider-than-expected loss for the fourth quarter. However, its shares climbed over 21 percent on Friday, February 25, 2022, after it struck an agreement with KAR Global (NYSE:KAR) to buy its vehicle auction business ADESA U.S.
The deal, valued at $2.2 billion, would help Carvana Co. boost its physical presence in the U.S. In addition, the company said that the ADESA’s reconditioning operations could increase its production by two million units annually.
For the fourth quarter, Carvana Co. posted a loss of $1.02 per share, wider than the consensus forecast for a loss of 79 cents per share. Revenue for the quarter climbed 105 percent on a year-over-year basis to $3.8 billion and topped expectations of $3.5 billion.
Speaking on the results, CEO Ernie Garcia said:
“2021 was a year full of meaningful milestones. We sold our 1 millionth car, achieved our first positive earnings quarter, and became the fastest growing e-commerce company in U.S. history.”
4. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 62
Shares of Dell Technologies Inc. recently plunged to a five-month low following its disappointing profit for the fourth quarter. The Texas-based tech company reported adjusted earnings of $1.72 per share, down from $1.76 per share in the year-ago period and below the consensus of $1.95 per share.
On the bright side, Dell Technologies Inc. posted revenue of $28 billion, up 16 percent on a year-over-year basis. Analysts were expecting the company to generate revenue of $27.5 billion.
Dell Technologies Inc. also disclosed its segment-wise sales performance. Revenue from its Client Solutions Group jumped 26 percent to $17.3 billion, while revenue from the Infrastructure Solutions Group increased 3 percent to $9.2 billion in the quarter.
Discussing the results, co-chief operating officer Chuck Whitten said:
“In FY22, widespread digital transformation continued to accelerate growth in technology spend, and we are encouraged by growing demand across our entire portfolio. We also made strategic progress across multi-cloud, edge, as-a-Service and telecom. We launched solutions in these spaces, engaged customers, and made investments to position Dell for future growth.”
3. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 82
Shares of Intuit Inc. turned red on Friday, February 25, 2022, after posting its fiscal second-quarter profit and sales below expectations. The California-based software company reported adjusted earnings of $1.55 per share, well above 68 cents per share in the year-ago period.
In addition, Intuit Inc. posted revenue of $2.7 billion, up 70 percent on a year-over-year basis. The results showed substantial improvement from the year-ago quarter but missed expectations of $1.85 per share for earnings and $2.73 billion for revenue.
Looking forward, Intuit Inc. expects adjusted earnings in the range of $11.48 – $11.64 per share for its FY 2022, representing year-over-year growth of 18 – 20 percent.
Speaking on the results, CEO Sasan Goodarzi said:
“We see continued strong momentum across the company as we focus on our mission to power prosperity and solve our customers’ biggest financial problems. Our platform continues to thrive as digitization is more important now than ever.”
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 96
Alibaba Group Holding Limited recently came into the limelight after announcing the financial results for its fiscal third quarter. The Chinese e-commerce behemoth reported adjusted earnings of $2.65 per ADS, down 23 percent on a year-over-year basis.
Revenue for the quarter rose 10 percent versus last year to $38.07 billion. Analysts expected Alibaba Group Holding Limited to report earnings of $2.55 per ADS on sales of $38.83 billion.
If we look at the performance of its flagship businesses, revenue from the China commerce segment increased 7 percent to $27.03 billion, while cloud revenue jumped 20 percent to $3.07 billion. In comparison, local consumer services revenue jumped 27 percent to $1.91 and international commerce revenue surged 18 percent to $2.58 billion in the quarter.
Among other updates, Alibaba Group Holding Limited reported that annual active consumers across its global ecosystem reached 1.28 billion during the 12 months ended December 31.
Commenting on the quarter, CEO Daniel Zhang said:
“Alibaba delivered steady progress this quarter as we continued to execute our multi-engine growth strategy in a complex and volatile market environment. We achieved positive momentum in key strategic businesses through a disciplined focus on capacity building and value creation to fuel our future growth.”
1. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 96
Shares of Block, Inc. soared over 26 percent on Friday, February 25, 2022, after the financial services and digital payments company delivered impressive profit and sales for the fourth quarter.
Block, Inc. reported adjusted earnings of 27 cents per share, crushing expectations of 23 cents per share. Revenue for the quarter climbed 29 percent on a year-over-year basis to $4.08 billion and easily surpassed expectations of $4.04 billion. Bitcoin revenue in the quarter jumped 12 percent to $1.96 billion.
Block, Inc. also released its segment-wise sales performance. Its transaction-based revenue in the quarter increased 41 percent to $1.31 billion, while subscription and services-based revenue skyrocketed 72 percent to $772 million.
Among other updates, Block, Inc. reported that its gross payment volume (GPV) in the quarter surged 45 percent to $46.3 billion. In addition, the company announced that it completed the acquisition of Australia-based buy now pay later (BNPL) platform Afterpay on January 31.
You can also take a peek at 11 Best Quantum Computing Stocks To Invest In and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.
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