In this article, we will take a look at the 11 key quarterly reports to watch.
Stocks from the consumer cyclical and basic materials sectors, including Expedia Group, Inc. (NASDAQ:EXPE), MGM Resorts International (NYSE:MGM) and The Mosaic Company (NYSE:MOS), recently published their first-quarter earnings reports.
If we look at their price actions, Expedia Group shares turned red despite posting better-than-expected Q1 results, while shares of Mosaic Company fell after its quarterly revenue missed expectations. On the other hand, MGM Resorts shares moved up following its upbeat financial performance.
Several other stocks, including fertilizer maker Nutrien Ltd. (NYSE:NTR) and tech firm ZoomInfo Technologies Inc. (NASDAQ:ZI), were also trending after announcing their financial results.
Key Quarterly Reports to Watch
11. Avis Budget Group, Inc. (NASDAQ:CAR)
Number of Hedge Fund Holders: 27
Shares of Avis Budget Group, Inc. (NASDAQ:CAR) rose nearly seven percent in the after-hours trading session on Monday, May 2, 2022, after announcing record financial results for the first quarter.
Avis Budget Group, Inc. reported adjusted earnings of $9.99 per share, crushing estimates $3.45 per share. Revenue for the quarter climbed 77 percent on a year-over-year basis to $2.4 billion, helped by higher demand. Analysts were looking for revenue of $2.11 billion.
Speaking on the results, CEO of Avis Budget Group, Inc., Joe Ferraro, said in a statement:
“Despite the impact of Omicron on the first half of the quarter, our team was able to quickly pivot to manage the significantly increasing demand during the back half of the quarter. We focused on diligent fleet management and continued cost optimization to generate a new record first quarter Adjusted EBITDA.”
10. InMode Ltd. (NASDAQ:INMD)
Number of Hedge Fund Holders: 30
Shares of InMode Ltd. (NASDAQ:INMD) closed higher on Monday, May 2, 2022, following its upbeat financial performance for the first quarter. The provider of innovative medical technologies earned 40 cents per share on an adjusted basis, higher than 34 cents per share in the year-ago period.
Revenue came in at $85.9 million, representing a surge of 31 percent on a year-over-year basis. Analysts were expecting InMode Ltd. to post earnings of 37 cents per share on revenue of $80.24 million.
InMode Ltd. also released its financial outlook for the full year. The company expects adjusted earnings in the range of $2.06 – $2.11 per share and revenue between $415 – $425 million for the full year.
Like InMode Ltd., investors are also closely watching Expedia Group, Inc., MGM Resorts International and The Mosaic Company, following their earnings reports.
9. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 36
Nutrien Ltd. recently posted mixed financial performance for the first quarter. However, the Canadian fertilizer giant raised its profit outlook for the full year, sending its shares up nearly four percent in the extended hours on Monday, May 2, 2022.
The company reported adjusted earnings of $2.70 per share, missing estimates of $2.73 per share. On the bright side, Nutrien Ltd. posted revenue of $7.657 billion, significantly higher than $4.658 billion in the year-ago period and above analysts’ average estimate of $7.62 billion.
For fiscal 2022, Nutrien Ltd. is now guiding for adjusted earnings in the range of $16.20 – $18.70 per share, compared to its earlier outlook between $10.20 – $11.80 per share.
Discussing the results, CEO Ken Seitz said in a statement:
“We expect to generate higher earnings and cash flows in 2022, which provides an opportunity to accelerate our strategic initiatives that we believe will advance sustainable agriculture practices and create long-term value for all our stakeholders.”
8. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 38
Shares of Arista Networks, Inc. (NYSE:ANET) rose over two percent in the after-hours trading session on Monday, May 2, 2022, after delivering better-than-expected financial results for the first quarter.
Arista Networks, Inc. reported adjusted earnings of 84 cents per share, up from 62 cents per share in the first quarter of 2021. Revenue increased to $877.1 million, from $667.6 million in the year-ago period. The results surpassed the consensus of 81 cents per share for earnings and $854.2 million for revenue.
Arista Networks, Inc. also released its segment-wise sales results. Its services revenue for the quarter increased to $152.3 million, from $128.4 million last year. In comparison, product revenue came in at $724.7 million versus $539.1 million in the year-ago quarter.
Looking forward, Arista Networks, Inc. anticipates revenue in the range of $950 million – $1 billion in the second quarter. The outlook is better than the consensus of $917 million.
7. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 39
Shares of The Clorox Company (NYSE:CLX) turned red in the extended hours on Monday, May 2, 2022, after trimming the profit outlook for its fiscal 2022. The Oakland-based consumer and professional products manufacturer now expects adjusted earnings in the range of $4.05 – $4.30 per share, below its previous guidance between $4.25 – $4.50 per share.
For its fiscal third quarter, The Clorox Company reported adjusted earnings of $1.31 per share, topping the expectations of 97 cents per share. Revenue for the quarter inched up 2 percent versus last year to $1.8 billion and matched the consensus forecast.
If we look at the performance of its key segments, Household revenue for the quarter jumped 6 percent, while Lifestyle revenue rose 4 percent on a year-over-year basis. In comparison, revenue from the Health and Wellness segment fell 3 percent versus the same period of 2021.
Like The Clorox Company, Expedia Group, Inc., MGM Resorts International and The Mosaic Company, also came into the spotlight after their quarterly reports.
6. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 44
Shares of NXP Semiconductors N.V. (NASDAQ:NXPI) rose in the after-hours trading session on Monday, May 2, 2022, after delivering impressive financial results for the first quarter. The Netherlands-based semiconductor giant earned $2.48 per share, representing a jump of nearly two-fold from $1.25 per share in the year-ago period. Analysts were looking for earnings of $2.23 per share.
In addition, revenue for the quarter advanced 22.2 percent on a year-over-year basis to $3.14 billion, beating expectations of $3.1 billion. NXP Semiconductors N.V. also released its segment-wise sales results.
Its automotive revenue climbed 27 percent to $1.56 billion, while industrial and IoT revenue rose 19 percent to $682 million in the quarter. In comparison, revenue from the communications infrastructure segment rallied 18 percent to $496 million.
For the second quarter, NXP Semiconductors N.V. projected revenue in the range of $3.18 – $3.38 billion. The outlook is above analysts’ average estimate of $3.15 billion.
Speaking on the results, CEO Kurt Sievers said in a statement:
“The strong growth we have anticipated for 2022 is materializing. We continue to see robust customer demand, especially our company-specific accelerated growth drivers. Overall, demand continues to outstrip increased supply, and inventory across all end markets remains very lean.”
5. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 46
Shares of The Mosaic Company fell over three percent in the extended hours on Monday, May 2, 2022, after announcing mixed financial results for the first quarter. The leading supplier of phosphate and potash reported adjusted earnings of $2.41 per share that matched the consensus estimates.
However, the quarterly revenue of $3.92 billion slightly fell short of analysts’ average estimate of $4.08 billion. Among other updates, The Mosaic Company reported that its gross margin increased to 36.7 percent, from 18.9 percent in the year-ago period. Moreover, it repurchased $422 million worth of its common stock during the quarter.
Speaking on the results, CEO of The Mosaic Company, Joc O’Rourke, said:
“Looking forward, we expect higher annual production across our global platform in both potash and phosphates, as a result of the completed ramp up of Esterhazy K3, a higher run-rate at Colonsay, and a recovery of phosphate output from our North American operations.”
4. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 47
Shares of ON Semiconductor Corporation (NASDAQ:ON) jumped nearly seven percent on Monday, May 2, 2022, after delivering solid profit and sales for the first quarter. The semiconductor supplier earned $1.22 per share on an adjusted basis, significantly higher than 35 cents per share in the year-ago period.
Revenue for the quarter climbed 31 percent on a year-over-year basis to $1.95 billion. Analysts were expecting ON Semiconductor Corporation to report earnings of $1.05 per share on revenue of $1.90 billion.
If we look at the performance of its flagship businesses, revenue from the power solutions group soared 32 percent to $986.7 million, the advanced solutions group’s revenue increased 30 percent to $689.3 million, and the intelligent sensing group’s revenue rose 32 percent to $269 million in the quarter.
Looking forward, ON Semiconductor Corporation expects adjusted earnings in the range of $1.20 – $1.32 per share and revenue between $1.965 – $2.065 billion for the second quarter. The outlook is better than the consensus of $1.05 per share for earnings and $1.920 billion for revenue.
3. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 55
ZoomInfo Technologies Inc. recently came into the spotlight after announcing better-than-expected financial results for the first quarter. The Vancouver-based tech company reported adjusted earnings of 18 cents per share, compared to 13 cents per share in the year-ago period.
In addition, ZoomInfo Technologies Inc. posted revenue of $241.7 million, up 48 percent over the same period of 2021. The results exceeded the consensus of 15 cents per share for earnings and $227.53 million for revenue.
Looking forward, ZoomInfo Technologies Inc. guided for revenue in the range of $253 – $255 million for the second quarter and between $1.06 – $1.07 billion for the full year.
Praising the results, CEO Henry Schuck said:
“ZoomInfo delivered a great start to the year as reflected in our first quarter results, which include another quarter of strong revenue growth and free cash flow. Customers are embracing the ZoomInfo RevOS platform, with more companies using the data, insights, automation and workflows to grow their business and efficiently go-to-market.”
2. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 55
Shares of MGM Resorts International slightly moved up in the pre-market trading session on Tuesday, May 3, 2022, following its upbeat financial performance for the first quarter.
MGM Resorts International reported adjusted earnings of 1 cent per share, swinging from an adjusted loss of 68 cents per share in the year-ago period. Revenue for the quarter soared 73 percent on a year-over-year basis to $2.9 billion. Analysts were looking for a loss of 7 cents per share on revenue of $2.78 billion.
MGM Resorts International also released the sales results of its flagship businesses. Revenue at the Las Vegas Strip Resorts skyrocketed 205 percent to $1.7 billion, while revenue from the Regional Operations rose 25 percent to $891 million in the quarter. On the downside, revenue from MGM China fell 9 percent to $268 million.
Discussing the results, CEO Bill Hornbuckle said:
“We delivered a strong first quarter in our domestic operations driven by weekend demand and a better mix of business. Our midweek business is improving with each quarter and our group base is growing after a tough January. The results demonstrate the robust demand for our gaming entertainment offerings with the backdrop of increased sports and entertainment programming in the Las Vegas market.”
1. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 82
Shares of Expedia Group, Inc. turned red in the pre-market trading session on Tuesday, May 3, 2022, despite beating financial expectations for the first quarter. The online travel company reported an adjusted loss of 47 cents per share, narrower than analysts’ average estimate for a loss of 58 cents per share.
In addition, Expedia Group, Inc. posted revenue of $2.25 billion, up 81 percent over the year-ago period and above expectations of $2.23 billion. Gross bookings for the quarter also climbed 58 percent versus last year to $24.4 billion.
Speaking on the results, CEO of Expedia Group, Inc., Peter Kern, said:
“As we have seen many times during Covid, this quarter was a tale of two stories. There was early impact from Omicron leftover from late last year, which faded as the turnaround in demand reached new highs since the start of Covid. While the war in Ukraine did slow some of the recovery in Europe, there too we see travel at new highs since the start of the pandemic.”
You can also take a peek at Top Cyclical Stocks To Buy Now and 10 Favorite Stocks of Dan Loeb’s Third Point.
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This article is originally published at Insider Monkey.
