In this article, we will take a look at the 11 stocks in focus after releasing their financial results.
Notable stocks from the tech and industrials sectors, including Microchip Technology Incorporated (NASDAQ:MCHP), RingCentral, Inc. (NYSE:RNG) and XPO Logistics, Inc. (NYSE:XPO), gained value in the pre-market trading session on Tuesday, May 10, after delivering impressive financial results for their respective quarters.
In addition, many other stocks, including interactive entertainment company Zynga Inc. (NASDAQ:ZNGA) and software company Palantir Technologies Inc. (NYSE:PLTR), also came into the limelight after releasing their earnings reports.
Now, let’s review the financial highlights of these companies.
11. Essential Utilities, Inc. (NYSE:WTRG)
Number of Hedge Fund Holders: 22
Essential Utilities, Inc. (NYSE:WTRG) recently announced its financial results for the first quarter above expectations. The Pennsylvania-based water and natural gas provider reported earnings of 76 cents per share, up from 72 cents per share in the year-ago period.
Revenue came in at $699.3 million, up 19.8 percent from $583.6 million in the first quarter of 2021. Analysts were expecting Essential Utilities, Inc. to report earnings of 74 cents per share on revenue of $617.07 million.
Essential Utilities, Inc. also released its segment-wise sales results. Revenue from the regulated water segment rose 4.7 percent to $239.2 million, while natural gas revenue jumped 29.7 percent to $445.2 million in the quarter.
Speaking on the results, CEO Christopher Franklin said in a statement:
“We delivered strong financial results for the first quarter of the year and will continue to make significant investments in infrastructure throughout the year, while remaining dedicated to providing high quality, essential utility services for our customers.”
10. Trex Company, Inc. (NYSE:TREX)
Number of Hedge Fund Holders: 28
Shares of Trex Company, Inc. (NYSE:TREX) rose nearly three percent in the after-hours trading session on Monday, May 9, 2022, after announcing solid profit and sales for the first quarter.
Trex Company, Inc. reported earnings of 62 cents per share, topping expectations of 54 cents per share. Revenue for the quarter rallied 38 percent on a year-over-year basis to $339 million, surpassing estimates of $326.87 million.
For the second quarter, Trex Company, Inc. projected revenue in the range of $375 – $385 million. The midpoint of the guidance represents a growth of 22 percent over the second quarter of 2021.
Like Trex Company, Inc., investors are also closely watching Microchip Technology Incorporated, RingCentral, Inc. and XPO Logistics, Inc. following their financial results.
9. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 33
Shares of Palantir Technologies Inc. plummeted to an all-time low on Monday, May 9, 2022, after reporting a lower-than-expected profit for the first quarter. The data analytics company earned 2 cents per share on an adjusted basis, down from 4 cents per share in the year-ago period.
In addition, Palantir Technologies Inc. posted revenue of $446 million, up 31 percent on a year-over-year basis. The results missed the consensus of 4 cents per share for earnings and $443.4 million for revenue.
Looking forward, Palantir Technologies Inc. expects to generate revenue of around $470 million for the second quarter. However, the outlook missed the consensus of $483.8 million.
8. Coty Inc. (NYSE:COTY)
Number of Hedge Fund Holders: 36
Coty Inc. (NYSE:COTY) recently announced better-than-expected financial results for the first quarter amid solid demand for its products in the U.S. and Europe. The New York-based beauty company reported adjusted earnings of 3 cents per share, beating estimates of 1 cent per share.
Revenue for the quarter rose 15 percent on a year-over-year basis to $1.19 billion, while analysts were expecting Coty Inc. to post revenue of $1.15 billion. If we look at its region-wise sales performance, Americas revenue increased 17 percent, EMEA revenue jumped 16 percent, and Asia-Pacific revenue rose 9 percent in the quarter.
Coty Inc. also raised its fiscal 2022 adjusted-earnings outlook to a range of 23 – 27 cents per share, from its previous guidance between 22 – 26 cents per share.
Discussing the results, CEO Sue Y. Nabi said in a statement:
“Our Q3 earnings mark the seventh consecutive quarter of Coty reporting results inline to ahead of expectations. I am extremely proud of the organization for delivering these results, and outperforming the overall beauty market, in an increasingly volatile environment.”
7. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 36
Shares of Tyson Foods, Inc. (NYSE:TSN) closed higher on Monday, May 9, 2022, after delivering impressive financial results for its fiscal second quarter. The manufacturer of frozen food products reported adjusted earnings of $2.29 per share, representing a massive surge of 71 percent over the same period of 2021.
In addition, Tyson Foods, Inc. posted revenue of $13.12 billion, up 16.1 percent over the year-ago period. The results easily surpassed the consensus of $1.88 per share for earnings and $12.84 billion for revenue.
Looking at the performance of its flagship segments, the sales volume of beef and chicken rose 0.6 percent in the quarter. On the downside, the sales volume of pork and prepared foods fell 4.8 percent and 5.3 percent, respectively.
For its fiscal year 2022, Tyson Foods, Inc. now expects revenue in the range of $52 – $54 billion, higher than the consensus of $51.79 billion.
Like Tyson Foods, Inc., Microchip Technology Incorporated, RingCentral, Inc. and XPO Logistics, Inc. also came into the spotlight after releasing their financial results.
6. International Flavors & Fragrances Inc. (NYSE:IFF)
Number of Hedge Fund Holders: 40
Shares of International Flavors & Fragrances Inc. turned green in the after-hours trading session on Monday, May 9, 2022, after crushing financial expectations for the first quarter.
International Flavors & Fragrances Inc. earned $1.69 per share on an adjusted basis, topping estimates of $1.28 per share. The quarterly revenue of $3.23 billion also surpassed the consensus of $3.02 billion.
International Flavors & Fragrances Inc. also released its segment-wise sales results. Nourish revenue jumped 16 percent to $1.73 billion, Health & Biosciences revenue increased 10 percent to $661 million, Scent revenue rose 6 percent to $585 million, and Pharma Solutions revenue advanced 10 percent to $249 million in the quarter.
Moving forward, the company raised its sales outlook for fiscal 2022. International Flavors & Fragrances Inc. NYSE:IFF) now expects revenue in the range of $12.6 – $13.0 billion versus its previous projection of $12.3 – $12.7 billion.
Commenting on the quarter, CEO Frank Clyburn said in a statement:
“Our pricing actions, in combination with our diligent focus on cost discipline, have helped offset the inflationary pressures felt across the global economy. Given our performance to date and reflecting additional inflation throughout the year, we have increased our sales expectation to include incremental pricing actions to fully recover our cost exposure as we remain committed to delivering our full year profit objective.”
5. Zynga Inc. (NASDAQ:ZNGA)
Number of Hedge Fund Holders: 47
Zynga Inc. recently missed profit and sales expectations for the first quarter. The interactive entertainment company reported earnings of 2 cents per share, compared to a loss of 2 cents per share in the year-ago period.
Revenue also inched down two percent versus last year to $691 million. Analysts were expecting Zynga Inc. to report earnings of 9 cents per share on revenue of $745.22 million.
If we look at the sales performance of the flagship segments of Zynga Inc., online game revenue slipped 3 percent to $538 million, while advertising & other revenue jumped 23 percent to $154 million in the quarter.
Speaking on the results, CEO Frank Gibeau said:
“Through continued execution across all aspects of our multi-year growth strategy including live services, new game development and investments in our advertising platform, new markets and technologies, we are strengthening our position as a leading mobile-first, free-to-play live services company.”
4. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 47
Shares of Exelon Corporation (NASDAQ:EXC) slightly moved down on Monday, May 9, 2022, following its mixed financial performance for the first quarter. The Illinois-based energy company earned 64 cents per share on an adjusted basis, missing the consensus of 66 cents per share.
On the bright side, Exelon Corporation posted revenue of $5.33 billion, beating the expectations of $4.61 billion. The latest results do not include any contribution from its former power generation business Constellation Energy, which was separated from Exelon earlier this year.
Exelon Corporation also reaffirmed its profit outlook for the full year. It continues to expect adjusted earnings in the range of $2.18 – $2.32 per share, in line with the consensus of $2.26 per share.
3. RingCentral, Inc. (NYSE:RNG)
Number of Hedge Fund Holders: 47
Shares of RingCentral, Inc. rose over six percent in the pre-market trading session on Tuesday, May 10, 2022, following its upbeat financial performance for the first quarter.
RingCentral, Inc. reported adjusted earnings of 39 cents per share, up from 27 cents per share in the comparable period of 2021. Revenue for the quarter jumped 33 percent on a year-over-year basis to $468 million. The results easily surpassed the consensus of 34 cents per share for earnings and $458.69 million for revenue.
Looking forward, RingCentral, Inc. now expects adjusted earnings in the range of $1.83 – $1.87 per share for fiscal 2022, up from its previous outlook of $1.69 – $1.72 per share.
Discussing the results, CEO Vlad Shmunis said:
“We had a very strong start to the year, driven by continued success with large enterprise customers and ramping contributions from our partners. We are also seeing the benefits of scale, with strong top line contributions now being complemented by increasing bottom line profitability, including meaningful free cash flows.”
2. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 48
Microchip Technology Incorporated delivered solid profit and sales for its fiscal fourth quarter, sending its shares up more than three percent in the pre-market trading session on Tuesday, May 10, 2022.
The microcontroller and analog semiconductors provider reported adjusted earnings of $1.35 per share, well above 93 cents per share in the year-ago period. Revenue came in at $1.844 billion, up 25.7 percent on a year-over-year basis. Analysts were expecting Microchip Technology Incorporated to post earnings of $1.25 per share on revenue of $1.82 billion.
Among other updates, Microchip Technology Incorporated announced that it repurchased $259.6 million worth of its common stock during the quarter. Moreover, it announced a quarterly dividend of 27.6 cents per share, up 9.1 percent on sequential basis.
For its fiscal first quarter, Microchip Technology Incorporated guided for adjusted earnings in the range of $1.32 – $1.36 per share and revenue between $1.92 – $1.99 billion. The outlook is above the consensus of $1.28 per share for earnings and $1.86 billion for revenue.
Praising the results, CEO Ganesh Moorthy said:
“These impressive results are a testament to the resilience of our model and the strength of our team as we continue to navigate through a challenging supply environment. We believe our focus on operational excellence positions us well to achieve our long-term non-GAAP gross margin target of 68%, non-GAAP operating margin target of 45%, and free cash flow target of 38% through industry cycles.”
1. XPO Logistics, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 53
Shares of XPO Logistics, Inc. turned green in the pre-market trading session on Tuesday, May 10, 2022, after its first-quarter profit and sales showed a substantial improvement on a year-over-year basis.
XPO Logistics, Inc. reported adjusted earnings of $1.25 per share, up from 79 cents per share in the comparable period of 2021. Revenue increased to $3.47 billion, from $2.99 billion in the year-ago quarter. Analysts were looking for earnings of 93 cents per share on revenue of $3.22 billion.
XPO Logistics, Inc. also raised its profit outlook for the full year. The freight transportation company now expects adjusted earnings in the range of $5.20 – $5.60 per share for fiscal 2022.
Speaking on the results, CEO Brad Jacobs said in a statement:
“Our best-in-class truck brokerage business gained share again in the quarter, with year-over-year load growth of 23%. Shippers increasingly want cutting-edge brokerage automation, and our XPO Connect platform gives them access to more than one and a half million carrier trucks. We’re creating or covering 74% of our brokerage loads digitally on the platform, up four percentage points from the fourth quarter.”
You can also take a peek at 10 Stocks To Buy Now According To Stamos Capital and 10 Favorite Stocks of Dan Loeb’s Third Point.
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This article is originally published at Insider Monkey.
