In this article, we will take a look at the 11 stocks making big moves after releasing their financial results.
Notable companies from the communication services, technology and healthcare sectors, including Netflix, Inc. (NASDAQ:NFLX), International Business Machines Corporation (NYSE:IBM) and Johnson & Johnson (NYSE:JNJ), recently came out with their financial results for the first quarter.
Netflix, Inc. shares lost nearly 30 percent of their value after reporting its first quarterly subscribers’ loss in more than a decade. The drop sent Netflix, Inc. shares down to a nearly four-year low in the early trading session Wednesday, April 20. On the other hand, shares of IBM and Johnson & Johnson gained value on a better-than-expected quarterly profit.
Several other companies, including Bank of America Corporation (NYSE:BAC) and Lockheed Martin Corporation (NYSE:LMT), also came into the limelight after releasing their earnings reports.
Photo by Adam Nowakowski on Unsplash
Now let’s discuss the financial highlights of these companies.
Stocks Making Big Moves After Releasing Their Financial Results
11. Iridium Communications Inc. (NASDAQ:IRDM)
Number of Hedge Fund Holders: 20
Shares of Iridium Communications Inc. (NASDAQ:IRDM) rose over six percent on Tuesday, April 19, 2022, after announcing better-than-expected financial results for the first quarter. The satellite communications company reported earnings of 2 cents per share, compared to a loss of 4 cents per share in the same period of 2021.
In addition, Iridium Communications Inc. posted revenue of $168.2 million, up 15 percent on a year-over-year basis. Analysts were looking for earnings of breakeven per share on revenue of $157.2 million.
Iridium Communications Inc. also reaffirmed its service revenue outlook for 2022. The company expects its service revenue to grow in the range of 5 – 7 percent in the current fiscal year.
Discussing the results, CEO Matt Desch said in a statement:
“Iridium continued to see strong demand in the first quarter. I’m continually amazed at the innovative ways in which our technology and distribution partners utilize our unique satellite network to drive growth and serve their respective markets.”
10. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Holders: 21
Shares of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) closed higher on Tuesday, April 19, 2022, following its upbeat financial performance for the first quarter. The Arkansas-based logistics company earned $2.29 per share, topping expectations of $1.94 per share.
Revenue for the quarter jumped 33.3 percent versus last year to $3.49 billion, beating estimates of $3.28 billion. J.B. Hunt Transport Services, Inc. also released its segment-wise sales performance. Its Truckload revenue climbed 77 percent, while Integrated Capacity Solutions revenue increased 29 percent on a year-over-year basis.
In comparison, Intermodal revenue for the quarter jumped 36 percent, helped by higher load volume. On the other hand, Dedicated Contract Services revenue advanced 28 percent versus the same period last year.
Like J.B. Hunt Transport Services, Inc., investors are also closely observing Netflix, Inc., International Business Machines Corporation and Johnson & Johnson, after they posted their earnings reports.
9. Hasbro, Inc. (NASDAQ:HAS)
Number of Hedge Fund Holders: 22
Shares of Hasbro, Inc. (NASDAQ:HAS) rose over five percent on Tuesday, April 19, 2022, despite its mixed financial results for the first quarter. The Rhode Island-based play and entertainment company reported adjusted earnings of 57 cents per share, down from $1 per share in the year-ago period.
Revenue for the quarter rose 4 percent on a year-over-year basis to $1.16 billion. Analysts were expecting Hasbro, Inc. to report earnings of 61 cents per share on revenue of $1.15 billion.
If we look at the performance of Hasbro’s flagship businesses, revenue from its consumer products segment rose three percent, entertainment revenue increased four percent, and wizards of the coast and digital gaming revenue jumped nine percent in the quarter.
Looking forward, Hasbro, Inc. plans to further increase prices to deal with the rising costs. Like its peers, increasing freight costs are eating away its profit margins. Moreover, the company also warned that the halt of toy shipments to Russia would affect its revenue.
8. Omnicom Group Inc. (NYSE:OMC)
Number of Hedge Fund Holders: 33
Omnicom Group Inc. (NYSE:OMC) is engaged in offering advertising and marketing services to thousands of customers in more than 100 countries. The company recently announced better-than-expected profit and sales for the first quarter, sending its shares up nearly two percent in the after-hours trading session on Tuesday, April 19, 2022.
Omnicom Group Inc. reported adjusted earnings of $1.39 per share on revenue of $3.41 billion. The results were better than analysts’ average estimate of $1.30 per share for earnings and $3.28 billion for revenue.
Commenting on the quarter, CEO John Wren said in a statement:
“We continued to invest in areas important to our clients’ growth, continued to make acquisitions in strategic areas of growth, and repurchased a significant amount of our shares. Despite uniquely challenging global events, we remain confident that our high-quality and diverse portfolio positions us strongly for future growth, both in 2022 and beyond.”
7. Signature Bank (NASDAQ:SBNY)
Number of Hedge Fund Holders: 41
Shares of Signature Bank (NASDAQ:SBNY) rose over eight percent on Tuesday, April 19, 2022, after posting solid earnings for the first quarter. The New York-based bank reported earnings of $5.30 per share, well above $3.24 per share in the same period of 2021.
The latest quarterly earnings surpassed the consensus of $4.32 per share with a big margin. Signature Bank attributed the latest performance to higher net interest income, strong deposit, and loan growth in the quarter.
Net interest income for the quarter jumped 41.1 percent on a year-over-year basis to $573.6. In comparison, non-interest income increased to $34.4 million, from $32.7 million in the year-ago period. Among other updates, Signature Bank reported that its deposits rose 2.8 percent to $109.16 billion.
Like Signature Bank, Netflix, Inc., International Business Machines Corporation and Johnson & Johnson also came into the spotlight after posting their financial results.
6. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 42
Shares of Lockheed Martin Corporation turned red on Tuesday, April 19, 2022, following its mixed financial performance for the first quarter. The Maryland-based aerospace and defense contractor earned $6.44 per share, down from $6.56 per share in the comparable period of 2021.
Revenue for the quarter fell eight percent on a year-over-year basis to $14.96 billion. Analysts were expecting Lockheed Martin Corporation to earn $6.21 per share on revenue of $15.55 billion.
Lockheed Martin Corporation also released its segment-wise sales performance. Its aeronautics sales inched up 0.22 percent to $6.4 billion, missiles and fire control sales fell 11 percent to $2.45 billion, and rotary and mission systems sales plummeted 14 percent to $3.55 billion in the quarter. In comparison, space sales declined 15 percent to $2.56 billion.
Looking forward, Lockheed Martin Corporation guided for earnings of about $26.70 per share on revenue of approx. $66 billion for the full year. The outlook is slightly below the consensus of $26.80 per share for earnings and $66.11 billion for revenue.
Discussing the results, CEO James Taiclet said in a statement:
“Lockheed Martin had a solid start to the year by delivering margin expansion and free cash flow above our expectations despite recent Covid-surge impacts on our operations and supply chain. We remain confident in our guidance for the remainder of the year and our growth outlook beyond.”
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 44
Shares of International Business Machines Corporation rose nearly two percent in the after-hours trading session on Tuesday, April 19, 2022, after beating expectations for the first quarter.
International Business Machines Corporation reported adjusted earnings of $1.40 per share, topping estimates of $1.38 per share. Revenue for the quarter rose 8 percent on a year-over-year basis to $14.2 billion, exceeding analysts’ average estimate of $13.85 billion.
International Business Machines Corporation also released its segment-wise sales performance. Its software revenue rose 12.3 percent to $5.8 billion and consulting revenue increased 13.3 percent to $4.8 billion in the quarter. On the downside, infrastructure revenue slipped 2.3 percent to $3.2 billion, while financing revenue plummeted 26.2 percent to $0.2 billion.
Speaking on the results, CEO Arvind Krishna said in a statement:
“Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we’re a more focused business and our results reflect the execution of our strategy. We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model.”
4. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 72
Shares of The Charles Schwab Corporation (NYSE:SCHW) recently dropped to a nearly six-month low after missing profit and revenue expectations for the first quarter. The Texas-based financial services company earned 77 cents per share on an adjusted basis, down from 84 cents per share in the same period of 2021.
Revenue also decreased to $4.67 billion, from $4.72 billion in the first quarter of 2021. Analysts were expecting The Charles Schwab Corporation to report earnings of 84 cents per share on revenue of $4.83 billion.
Among other updates, The Charles Schwab Corporation announced that its core net new assets increased to $121 billion, representing an annualized organic growth rate of 6 percent. Moreover, the company ended the quarter with active brokerage accounts of 33.6 million and total client assets of $7.86 trillion, representing a year-over-year surge of 5 percent and 11 percent, respectively.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 83
Shares of Johnson & Johnson hit a new 52-week high of $185.94 on Tuesday, April 19, 2022, following its upbeat profit for the first quarter. The New Jersey-based healthcare giant reported adjusted earnings of $2.67 per share, up from $2.59 per share in the year-ago period and above the consensus of $2.58 per share.
On the downside, Johnson & Johnson posted revenue of $23.4 billion, below analysts’ average estimate of $23.6 billion. If we look at the performance of its flagship segments, its pharmaceutical revenue rose 6.3 percent to $12.87 billion, while medical devices revenue increased 5.9 percent to $6.97 billion in the quarter. In comparison, revenue from its consumer health segment slipped 1.5 percent to $3.59 billion.
Johnson & Johnson also updated its earnings outlook for 2022. It now expects adjusted earnings in the range of $10.15 – $10.35 per share, down from its previous guidance between $10.40 – $10.60 per share.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 84
Shares of Bank of America Corporation rose for two consecutive trading sessions after announcing better-than-expected financial results for the first quarter on Monday, April 18, 2022.
Bank of America Corporation reported earnings of 80 cents per share, compared to 86 cents per share in the same period last year. Revenue came in at $23.2 billion versus $22.8 billion in the comparable period of 2021. The results exceeded analysts’ average estimate of 74 cents per share for earnings and $23.1 billion for revenue.
In addition, Bank of America Corporation reported that its net interest income increased 13 percent on a year-over-year basis to $11.6 billion. The surge was attributed to solid deposit growth and higher interest rates in the quarter.
Speaking on the results, CEO Brian Moynihan said in a statement:
“We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year over year we grew loans $70 billion and deposits by $240 billion.”
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. appears to be in serious trouble following its lackluster performance in the first quarter. The California-based subscription streaming service lost 200,000 subscribers in the first quarter, contrary to analysts’ expectations for additions of 2.7 million subscribers.
The company blamed the suspension of services in Russia for losing 700,000 subscribers. However, Netflix, Inc. also lost nearly 640,000 subscribers in the U.S. and Canada, and many are linking the losses with the price hikes in the two countries. Moreover, the intensifying competition from rival streaming services is also making it hard for the company to gain more customers.
In a letter to shareholders, Netflix, Inc. said that over 100 million households are violating its rules by sharing passwords of their accounts. The company also hinted at a global crackdown on them as it looks to reduce losses and boost its subscriber base.
Coming back to the first-quarter results, Netflix, Inc. reported earnings of $3.53 per share, down from $3.75 in the comparable period of 2021. Revenue came in at $7.87 billion, up from $7.16 billion in the year-ago quarter. Analysts were looking for earnings of $2.89 per share on revenue of $7.93 billion.
Shares of Netflix, Inc. plummeted to their lowest price in more than three years, losing nearly 30 percent of their value in the pre-market trading session on Wednesday, April 20, 2022, following its disappointing Q1 performance.
You can also take a peek at 7 Best Stocks to Buy Now According to Bill Ackman and 10 Undervalued Dividend Kings To Buy In 2022.
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This article is originally published at Insider Monkey.
