In this article, we will take a look at the 11 much-awaited earnings reports to watch.
Some of the largest U.S. stocks, including Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) and Visa Inc. (NYSE:V), are making headlines after posting their earnings reports.
Shares of Microsoft and Visa rose following their upbeat quarterly performance. However, Alphabet stock plunged to a nearly one-year low after missing expectations for the first quarter.
Many other companies, including leading U.S. automaker General Motors Company (NYSE:GM) and semiconductor manufacturer Texas Instruments Incorporated (NASDAQ:TXN), are also garnering attention after releasing their financial results.
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Most-Awaited Earnings Reports to Watch
11. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 40
Shares of Teradyne, Inc. (NASDAQ:TER) rose over four percent in the after-hours trading session on Tuesday, April 26, 2022, after posting its fiscal first-quarter quarter profit and sales above expectations.
Teradyne, Inc. reported adjusted earnings of 98 cents per share, compared to $1.11 per share in the same period of 2021. Revenue decreased to $755 million, from $782 million in the year-ago quarter. The results easily surpassed the consensus of 88 cents per share for earnings and $740.98 million for revenue.
The automatic test equipment manufacturer also released its financial outlook for the second quarter. Teradyne, Inc. expects adjusted earnings in the range of $1 – $1.29 per share and revenue between $780 – $870 million.
Discussing the outlook, CEO Mark Jagiela said in a statement:
“Entering the second quarter, the demand environment in test has incrementally improved from our January outlook with particular strength in automotive and Flash memory end markets. In Industrial Automation, both cobot demand at Universal Robots and autonomous mobile robot demand at MiR remain strong and we expect the revenue growth rate to accelerate through the year.”
10. Roper Technologies, Inc. (NYSE:ROP)
Number of Hedge Fund Holders: 41
Shares of Roper Technologies, Inc. (NYSE:ROP) closed higher on Tuesday, April 26, 2022, following its solid profit and sales for the first quarter and an upbeat outlook for the full year. The diversified industrial company earned $3.77 per share on an adjusted basis, beating expectations of $3.68 per share.
Revenue for the quarter jumped 11 percent on a year-over-year basis to $1.53 billion, ahead of the consensus of $1.47 billion. Roper Technologies, Inc. also released its segment-wise sales performance.
Its application software revenue rose 9.5 percent to $631.5 million, network software & systems revenue climbed 17.3 percent to $368.7 million, measurement & analytical solutions revenue increased 6.2 percent to $392.4 million, and process technologies revenue advanced 15.8 percent to $134 million in the quarter.
Looking forward, Roper Technologies, Inc. raised its fiscal 2022 outlook to a range of $15.50 – $15.75 per share, from its previous guidance of $15.25 – $15.55 per share. The midpoint of the updated outlook is above analysts’ average estimate of $15.54 per share.
Like Roper Technologies, Inc., investors are also closely watching Microsoft Corporation, Alphabet Inc. and Visa Inc. following their earnings reports.
9. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 47
Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) turned green in the after-hours trading session on Tuesday, April 26, 2022, after delivering impressive financial performance for the first quarter.
Chipotle Mexican Grill, Inc. reported adjusted earnings of $5.70 per share, up from $5.36 per share in the first quarter of 2021. Revenue also surged 16 percent versus last year to $2.02 billion. Analysts were looking for earnings of $5.64 per share on revenue of $2.01 billion.
Among other updates, Chipotle Mexican Grill, Inc. reported that its operating margin for the quarter increased to 9.4 percent, from 9.3 percent in the prior year. In addition, the company opened 51 new restaurants during the three months period ended March 31, 2022.
8. The Sherwin-Williams Company (NYSE:SHW)
Number of Hedge Fund Holders: 53
Shares of The Sherwin-Williams Company (NYSE:SHW) recently jumped to a nearly two-month high after beating profit and sales expectations for the first quarter. The Ohio–based paint and coating supplier reported adjusted earnings of $1.61 per share, topping estimates of $1.55 per share.
In addition, The Sherwin-Williams Company posted revenue of $5 billion, up 7.4 percent on a year-over-year basis and above expectations of $4.91 billion. Revenue from stores in the U.S. and Canada rose 3.8 percent in the quarter.
The Sherwin-Williams Company also reaffirmed its financial outlook for fiscal 2022. It continues to anticipate adjusted earnings in the range of $9.25 – $9.65 per share.
Speaking on the results, CEO John Morikis said in a statement:
“Our team delivered results in line with our expectations in an environment characterized by strong demand, ongoing cost inflation, and choppy raw material availability that improved meaningfully in the final weeks of the quarter.”
7. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 53
Texas Instruments Incorporated recently topped financial expectations for the first quarter. However, its second-quarter outlook disappointed investors, sending its shares down nearly three percent in the extended hours on Tuesday, April 26, 2022.
The semiconductor company’s earnings jumped 26 percent versus last year to $2.35 per share. Revenue for the quarter also rose 14 percent on a year-over-year basis to $4.91 billion. Analysts were expecting Texas Instruments Incorporated to earn $2.18 per share on revenue of $4.74 billion.
For the second quarter, Texas Instruments Incorporated guided for earnings in the range of $1.84 – $2.26 per share and revenue between $4.20 – $4.80 billion. The guidance was below the consensus of $2.27 per share for earnings and $4.94 billion for revenue. The company blamed lower demand in China for the weak outlook.
Like Texas Instruments Incorporated, Microsoft Corporation, Alphabet Inc. and Visa Inc. also came into the spotlight after releasing their earnings reports.
6. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 55
Shares of United Parcel Service, Inc. (NYSE:UPS) fell over three percent on Tuesday, April 26, 2022, despite announcing its first-quarter results above expectations. The package and document delivery giant earned $3.05 per share on an adjusted basis, topping estimates of $2.88 per share.
Revenue came in at $24.4 billion, up 6.4 percent versus the year-ago quarter and above expectations of $23.79 billion. United Parcel Service, Inc. also released the sales results from its flagship segments.
Revenue from the U.S. domestic segment increased 8 percent to $15.12 billion, while international revenue rose 5.8 percent to $4.88 billion in the quarter. In comparison, supply chain solutions revenue inched up 2 percent to $4.38 billion.
United Parcel Service, Inc. also reaffirmed its fiscal 2022 sales outlook of about $102 billion. Moreover, the company plans to increase its share repurchase target to $2 billion for the full year.
Commenting on the results, CEO Carol Tomé said:
“The agility of our network and the continued execution of our strategy delivered another quarter of strong financial performance, putting us on our way to achieving our 2022 consolidated financial targets.”
5. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 57
General Electric Company (NYSE:GE) recently announced better-than-expected financial results for the first quarter. However, the company cautioned that the latest pandemic-driven lockdowns in China and Russia-Ukraine war have intensified logistic challenges and inflationary pressure, which could impact its full-year outlook.
The Boston-based company maintained its adjusted earnings guidance of $2.80 – $3.50 per share. But at the same time, General Electric Company expects the results to come at the lower end of the outlook.
For the first quarter, General Electric Company reported adjusted earnings of 24 cents per share, up from 13 cents per share in the comparable period of 2021. Revenue came in at $17 billion, nearly unchanged from the year-ago period. The results were better than the consensus of 19 cents per share for earnings and $16.91 billion for revenue.
Discussing the outlook, CEO H. Lawrence Culp, Jr. said in a statement:
“We’re holding the outlook range we shared in January, but as we continue to work through inflation and other evolving pressures, we’re currently trending toward the low end of the range. Importantly, we remain on track to launch three independent, investment-grade companies with leading positions in growing, critical sectors, well positioned to create long-term value.”
4. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 90
Shares of General Motors Company turned green in the after-hours trading session on Tuesday, April 26, 2022, following its upbeat profit for the first quarter. The Michigan-based automaker earned $2.09 per share on an adjusted basis, crushing expectations of $1.68 per share.
On the downside, the quarterly revenue of $35.98 billion missed expectations of $37.01 billion. General Motors Company is the first major U.S. automobile company to report Q1 results. Many are closely watching the report to get a clear idea of the ongoing global supply chain issues.
Looking forward, General Motors Company now expects adjusted earnings in the range of $6.50 – $7.50 per share for the full year, up from its previous outlook between $6.25 – $7.25 per share.
Updating investors on its electric vehicle (EV) production targets, CEO Mary Barra said in a statement:
“Launching more EVs faster is the catalyst for growth, and we are accelerating our volumes, growing to 1 million units of EV capacity in North America by the end of 2025, and expanding from there. In North America alone, we target production of 400,000 all-electric vehicles over the course of 2022 and 2023.”
3. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 142
Shares of Visa Inc. rose nearly six percent in the pre-market trading session on Wednesday, April 27, 2022, after delivering solid profit and sales for its fiscal second quarter. The digital payments giant reported adjusted earnings of $1.79 per share, representing a surge of 30 percent over the same period of 2021.
Revenue came in at $7.19 billion, well above $5.73 billion in the comparable period of the prior year. Analysts were expecting Visa Inc. to report earnings of $1.65 per share on revenue of $6.84 billion.
Visa Inc. also released its segment-wise sales performance. Its service revenue jumped 24 percent to $3.5 billion, data processing revenue rose 16 percent to $3.5 billion, and international transaction revenue climbed 48 percent to $2.2 billion in the quarter.
Among other updates, Visa Inc. reported that its total processed transactions for the quarter increased 19 percent to 44.8 billion, while payment volume rose 17 percent on a year-over-year basis.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Shares of Alphabet Inc. plummeted to a nearly one-year low in the pre-market trading session on Wednesday, April 27, 2022, after posting weak financial results for the first quarter. The results were partly weighed down by the suspension of ad sales in Russia.
Alphabet Inc. reported adjusted earnings of $24.62 per share, compared to $26.29 per share in the same quarter of the prior year. Revenue for the quarter jumped 23 percent on a year-over-year basis to $68.01 billion. However, the results missed analysts’ average estimate of $25.91 per share for earnings and $68.11 billion for revenue.
Alphabet Inc. also released the sales results of its flagship segments. Its YouTube ad revenue increased to $6.9 billion, from $6 billion last year but missed the consensus of $7.51 billion. The company’s video business is facing intense competition from rival apps such as TikTok.
On the bright side, Alphabet Inc. reported that Google Cloud revenue climbed 44 percent on a year-over-year basis to $5.82 billion, topping estimates of $5.76 billion. In addition, revenue from the Google Search & other segment rose 24.3 percent versus last year to $39.62 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 262
Shares of Microsoft Corporation rose over three percent in the pre-market trading session on Wednesday, April 27, 2022, following an impressive financial performance for its fiscal third quarter.
Microsoft Corporation reported earnings of $2.22 per share, up from $2.03 per share in the comparable period of 2021. Analysts were expecting the software giant to earn $2.19 per share.
In addition, Microsoft Corporation posted revenue of $49.36 billion, representing a surge of 18 percent over the same quarter of the prior year. The quarterly revenue also exceeded the consensus of $49.05 billion.
Microsoft Corporation reported that revenue from its Productivity and Business Processes segment jumped 17 percent to $15.8 billion. The surge was mainly driven by solid demand for its office productivity software, such as Office 365. In comparison, its Intelligent Cloud revenue climbed 26 percent to $19.1 billion, while revenue from the More Personal Computing segment rose 11 percent to $14.5 billion in the quarter.
Among other updates, Microsoft Corporation announced that it returned $12.4 billion to investors in the form of share buybacks and dividends during the third quarter ended March 31.
Speaking on the results, CEO Satya Nadella said in a statement:
“Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
You can also take a peek at 10 Favorite Stocks of Billionaire Izzy Englander and 10 Favorite Stocks of Dan Loeb’s Third Point.
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This article is originally published at Insider Monkey.
