11 Companies Making Headlines on Earnings Reports

In this article, we will take a look at the 11 companies making headlines on earnings reports.

Notable stocks from the tech and consumer cyclical sectors, including Cisco Systems, Inc. (NASDAQ:CSCO), Bath & Body Works, Inc. (NYSE:BBWI) and Lowe’s Companies, Inc. (NYSE:LOW), were spotted making big moves after releasing their financial results.

Cisco stock plummeted to a nearly 18-month low after missing revenue expectations for its fiscal third quarter, while shares of Bath & Body Works fell after trimming its earnings outlook for the full year. On the other hand, Lowe’s stock also dropped following its mixed quarterly performance.

In addition, department store chain Target Corporation (NYSE:TGT) and off-price retailer The TJX Companies, Inc. (NYSE:TJX) were also among the notable stocks that recently came out with their financial results.

11. Shoe Carnival, Inc. (NASDAQ:SCVL)

Number of Hedge Fund Holders: 19

Shares of Shoe Carnival, Inc. (NASDAQ:SCVL) recently plummeted to a nearly one-year low after its fiscal first-quarter profit and sales dropped on a year-over-year basis. The footwear retailer reported earnings of 95 cents per share, well below $1.51 per share in the year-ago quarter.

Revenue also slipped 3 percent versus last year to $317.53 million. However, the results were better than analysts’ average estimate of 86 cents per share for earnings and $314.05 million for revenue.

For the full year, Shoe Carnival, Inc. (NASDAQ:SCVL) raised its earnings outlook to a range of $3.95 – $4.15 per share, from its earlier projection of $3.80 – $4.10 per share. The updated guidance is nearly in line with the consensus of $4.10 per share.

10. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Number of Hedge Fund Holders: 33

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a leading cargo shipping company based in Israel. It recently surpassed financial expectations for the first quarter amid higher freight rates during the quarter.

The company reported earnings of $14.19 per share, representing a massive surge of 190 percent over the same quarter of 2021. In addition, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) posted revenue of $3.72 billion, up 113.1 percent on a year-over-year basis. The results easily surpassed the consensus of $12.53 per share for earnings and $3.47 billion for revenue.

For fiscal 2022, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) now expects adjusted EBITDA in the range of $7.8 – $8.2 billion, compared to its previous projection of $7.1 – $7.5 billion.

Like ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Cisco Systems, Inc. (NASDAQ:CSCO), Bath & Body Works, Inc. (NYSE:BBWI) and Lowe’s Companies, Inc. (NYSE:LOW) also came into the spotlight following their earnings reports.

9. Synopsys, Inc. (NASDAQ:SNPS)

Number of Hedge Fund Holders: 41

Synopsys, Inc. (NASDAQ:SNPS) delivered solid profit and sales for its fiscal second quarter, sending its shares up more than 4 percent in the extended hours on Wednesday, May 18, 2022.

The electronic design automation company reported adjusted earnings of $2.50 per share, significantly higher than $1.70 per share in the year-ago period. Revenue for the quarter jumped 25 percent on a year-over-year basis to $1.28 billion. Analysts were expecting Synopsys, Inc. (NASDAQ:SNPS) to report earnings of $2.37 per share on revenue of $1.26 billion.

Synopsys, Inc. (NASDAQ:SNPS) also released its financial outlook for the current quarter. The company guided for adjusted earnings between $2.01 – $2.06 per share and revenue in the range of $1.21 – $1.24 billion for its fiscal third quarter. The projection is also above the consensus of $1.61 per share for earnings and $1.14 billion for revenue.

8. Dynatrace, Inc. (NYSE:DT)

Number of Hedge Fund Holders: 44

Shares of Dynatrace, Inc. (NYSE:DT) closed higher on Wednesday, May 18, 2022, following an upbeat financial performance for its fiscal fourth quarter. The Massachusetts-based tech company earned 17 cents per share on an adjusted basis, beating the consensus of 15 cents per share.

In addition, Dynatrace, Inc. (NYSE:DT) posted revenue of $252.6 million, up 31 percent on a year-over-year basis, and above expectations of $246.6 million. Subscription revenue came in at $235 million and accounted for nearly 92 percent of the total sales.

Looking forward, Dynatrace, Inc. (NYSE:DT) expects adjusted earnings in the range of 17 – 18 cents per share and revenue between $261 – $263.5 million for the current quarter.

Speaking on the results, CEO Rick McConnell said in a statement:

“Heading into fiscal 2023, Dynatrace’s position in the market has never been stronger. I am very proud of Dynatrace’s accomplishments and believe it is well positioned to continue to deliver significant growth and profitability in the future.”

7. Copart, Inc. (NASDAQ:CPRT)

Number of Hedge Fund Holders: 47

Copart, Inc. (NASDAQ:CPRT) is a leading provider of online auctions and automobile remarketing services. The company enables vehicle owners to sell their cars online through virtual bidding.

Shares of Copart, Inc. (NASDAQ:CPRT) rallied in the after-hours trading session on Wednesday, May 18, 2022, after announcing better-than-expected profit and sales for its fiscal third quarter.

Copart, Inc. (NASDAQ:CPRT) reported adjusted earnings of $1.17 per share, up from $1.09 per share in the year-ago period. Revenue for the quarter climbed 28.1 percent on a year-over-year basis to $939.9 million. Analysts were looking for earnings of $1.14 per share on revenue of $878 million.

Like Copart, Inc. (NASDAQ:CPRT), investors are also closely observing Cisco Systems, Inc. (NASDAQ:CSCO), Bath & Body Works, Inc. (NYSE:BBWI) and Lowe’s Companies, Inc. (NYSE:LOW) following their earnings reports.

6. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49

Shares of Target Corporation (NYSE:TGT) recently plunged to a new 52-week low after announcing a disappointing profit for the first quarter. The Minnesota-based department store chain primarily took a hit from soaring fuel and transportation costs during the quarter.

Target Corporation (NYSE:TGT) reported adjusted earnings of $2.19 per share, representing a drop of 40 percent over the same period of 2021. Earnings also missed the consensus of $3.07 per share with a big margin.

On the bright side, revenue for the quarter rose 4 percent versus last year to $25.2 billion, beating the expectations of $24.49 billion. In addition, comparable sales for the quarter increased 3.3 percent. Among other updates, Target Corporation (NYSE:TGT) reported that it repurchased $10 million worth of its common stock during the quarter.

Discussing the results, CEO Brian Cornell said in a statement:

“Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time. Despite these near-term challenges, our team remains passionately dedicated to our guests and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates mid-single digit revenue growth, and an operating margin rate of 8 percent or higher over time.”

5. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 56

Shares of The TJX Companies, Inc. (NYSE:TJX) rose over seven percent on Wednesday, May 18, 2022, despite posting mixed financial performance for its fiscal first quarter. The off-price retailer reported adjusted earnings of 68 cents per share, topping estimates of 61 cents per share.

Revenue for the quarter advanced 13 percent on a year-over-year basis to $11.41 billion, while analysts were expecting The TJX Companies, Inc. (NYSE:TJX) to generate revenue of $11.61 billion.

Looking forward, The TJX Companies, Inc. (NYSE:TJX) expects adjusted earnings in the range of $3.13 – $3.20 per share for its fiscal year 2023. However, the midpoint of the outlook missed the consensus of $3.15 per share.

Speaking on the results, CEO Ernie Herrman said:

“We believe our value proposition is as appealing as ever for consumers in today’s retail environment, and we are excited about our initiatives to drive customer traffic and sales. We remain focused on our long-term vision to become an increasingly profitable, $60-billion-plus company.”

4. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 57

Cisco Systems, Inc. (NASDAQ:CSCO) appears to be in serious trouble after missing revenue expectations for its fiscal third quarter and releasing disappointing guidance for the current quarter.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) plummeted to a nearly 18-month low on Thursday, May 19, 2022, following the results. The California-based networking giant earned 87 cents per share on an adjusted basis, compared to 83 cents per share in the year-ago period.

In addition, Cisco Systems, Inc. (NASDAQ:CSCO) posted revenue of $12.84 billion, nearly unchanged from the same quarter of the prior year. Analysts were looking for earnings of 86 cents per share on revenue of $13.34 billion.

For the current quarter, Cisco Systems, Inc. (NASDAQ:CSCO) guided for adjusted earnings in the range of 76 – 84 cents per share, missing the consensus of 92 cents per share with a big margin.

Discussing the results, CEO Chuck Robbins said in a statement:

“While Covid lockdowns in China and the war in Ukraine impacted our revenue in the quarter, the fundamental drivers across our business are strong and we remain confident in the long term.”

3. Bath & Body Works, Inc. (NYSE:BBWI)

Number of Hedge Fund Holders: 62

Bath & Body Works, Inc. (NYSE:BBWI) recently announced better-than-expected financial results for its fiscal first quarter. However, the company trimmed its profit outlook for the full year. As a result, its shares hit a new 52-week low of $38.35 on Thursday, May 19, 2022.

The Ohio-based specialty retailer reported adjusted earnings of 64 cents per share, compared to 60 cents per share in the year-ago period. In addition, Bath & Body Works, Inc. (NYSE:BBWI) posted revenue of $1.45 billion, down 1 percent on a year-over-year basis. Nevertheless, the results exceeded the consensus of 53 cents per share for earnings and $1.43 billion for revenue.

For its fiscal 2022, Bath & Body Works, Inc. (NYSE:BBWI) expects earnings in the range of $3.80 – $4.15 per share, down from its previous guidance between $4.30 – $4.70 per share.

Speaking on the results, CEO Sarah Nash said in a statement:

“Looking ahead in 2022, we are continuing to plan prudently and use our agility to chase winners. We are accelerating investments in the business to drive our long-term growth, while at the same time, our team continues to successfully navigate the inflationary environment.”

2. Analog Devices, Inc. (NASDAQ:ADI)

Number of Hedge Fund Holders: 72

Analog Devices, Inc. (NASDAQ:ADI) recently caught investors’ attention after delivering impressive profit and sales for its fiscal second quarter. The Massachusetts-based semiconductor giant benefitted from the solid demand for its technologies across all end markets.

The company reported adjusted earnings of $2.40 per share, well above $1.54 per share in the comparable period of 2021. Revenue for the quarter skyrocketed 78.9 percent on a year-over-year basis to $2.97 billion. Analysts were expecting Analog Devices, Inc. (NASDAQ:ADI) to report earnings of $2.11 per share on revenue of $2.84 billion.

Analog Devices, Inc. (NASDAQ:ADI) also released its financial outlook for the current quarter. It expects adjusted earnings of about $2.42 per share and revenue of approx. $3.05 billion for its fiscal third quarter.

Commenting on the results, CEO Vincent Roche said:

“ADI delivered its fifth consecutive quarter of record revenue, illustrating the unprecedented demand for our technologies and our ability to increase output in a challenging supply backdrop.”

1. Lowe’s Companies, Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 72

Shares of Lowe’s Companies, Inc. (NYSE:LOW) declined over five percent on Wednesday, May 18, 2022, after delivering mixed financial performance for its fiscal first quarter. The Mooresville-based home improvement retailer reported earnings of $3.51 per share, beating expectations of $3.22 per share.

On the downside, Lowe’s Companies, Inc. (NYSE:LOW) reported that its quarterly revenue decreased to $23.7 billion, from $24.4 billion in the year-ago period. It also missed the consensus of $23.76 billion.

Lowe’s Companies, Inc. (NYSE:LOW) also reaffirmed its financial outlook for the full year. It continues to expect earnings in the range of $13.10 – $13.60 per share and revenue between $97 -$99 billion.

Speaking on the results, CEO Marvin Ellison said in a statement:

“Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April.  Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures.  Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May.”

You can also take a peek at 12 Best American Stocks To Buy in 2022 and 10 Favorite Stocks of Dan Loeb’s Third Point.

Follow Insider Monkey on Twitter

Suggested articles:

• 13 Best Cloud Stocks To Buy Now
• 11 Best Chemical Stocks To Invest In Now
• Analysts Are Recommending These 10 Dividend Stocks

Disclosure: None. 11 Companies Making Headlines on Earnings Reports is originally published on Insider Monkey.