10 Companies That Just Smashed Earnings Estimates

Published on July 22, 2022 at 9:12 am by Fahad Ali Khan in News

In this article, we will take a look at the 10 companies that just smashed earnings estimates.

Electric vehicle giant Tesla, Inc. (NASDAQ:TSLA), telecommunications behemoth AT&T Inc. (NYSE:T) and rail transportation company CSX Corporation (NASDAQ:CSX), recently crushed earnings expectations for the second quarter.

Shares of Tesla and CSX rose after the results. However, AT&T shares dropped apparently after reporting a weaker-than-expected free cash flow for the second quarter.

Many other stocks, including Danaher Corporation (NYSE:DHR) and Union Pacific Corporation (NYSE:UNP), also came into the limelight after beating financial expectations for Q2.

Now, let’s review the key financial highlights of these companies.

10. Nucor Corporation (NYSE:NUE)

Number of Hedge Fund Holders: 22

Shares of Nucor Corporation (NYSE:NUE) rose over nine percent on Thursday, July 21, 2022, after the Charlotte-based steel producer announced better-than-expected financial results for the second quarter.

Nucor Corporation (NYSE:NUE) attributed the latest results to the solid performance of its steel products business. The company reported earnings of $9.67 per share for the quarter, significantly higher than $5.04 per share in the comparable period of 2021.

In addition, Nucor Corporation (NYSE:NUE) posted revenue of $11.79 billion, representing a surge of 12 percent over the year-ago quarter. The results easily surpassed the consensus of $8.39 per share for earnings and $11.46 billion for revenue.

9. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Holders: 22

Nokia Oyj (NYSE:NOK) recently beat profit and sales expectations for the second quarter, helped by solid demand for its 5G equipment. The strong results sent its shares up nearly nine percent on Thursday, July 21, 2022.

The Finnish telecom giant reported adjusted earnings of 0.10 euros per share, beating expectations. Revenue for the quarter increased 11 percent on a year-over-year basis to 5.87 billion euros, while analysts were expecting Nokia Oyj (NYSE:NOK) to post revenue of 5.60 billion euros.

Nokia Oyj (NYSE:NOK) also reaffirmed its sales guidance for the full year. Nokia continues to expect revenue in the range of 23.5 – 24.7 billion euros.

Speaking on the results, CEO Pekka Lundmark said in a statement:

“We have had a strong first half and with our renewed competitiveness, we are well placed to deliver our full year 2022 guidance. There remain risks around timing of Nokia Technologies’ contract renewals, potential COVID-19 lockdowns and the supply chain which remains challenging but is showing signs of improvement. We are currently tracking towards the higher-end of our net sales guidance and towards the mid-point of our operating margin guidance as we manage ongoing inflation and currency headwinds.”

8. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 52

Shares of D.R. Horton, Inc. (NYSE:DHI) closed higher on Thursday, July 21, 2022, after the Texas-based home construction company delivered solid earnings for its fiscal third quarter. The results were mainly driven by strong homebuilding sentiment in the first half.

D.R. Horton, Inc. (NYSE:DHI) reported earnings of $4.67 per share for the three months ended June 30, 2022, compared to $3.06 per share in the comparable period of 2021. Revenue came in at $8.79 billion versus $7.3 billion last year. Analysts were looking for earnings of $4.49 per share on revenue of $8.81 billion.

On the downside, D.R. Horton, Inc. (NYSE:DHI) reduced its sales outlook for the full year, citing a drop in housing demand. It now anticipates revenue of $33.8 – $34.6 billion, compared to its earlier projection of $35.3 – $36.1 billion.

7. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 55

Philip Morris International Inc. (NYSE:PM) crushed profit and sales expectations for the second quarter, sending its shares up more than four percent on Thursday, July 21, 2022. The tobacco company reported adjusted earnings of $1.48 per share, beating the consensus of $1.25 with a big margin.

In addition, Philip Morris International Inc. (NYSE:PM) posted revenue of $7.83 billion, smashing analysts’ average estimate of $6.71 billion. The company also lifted its profit outlook for the full year.

On an adjusted basis, Philip Morris International Inc. (NYSE:PM) now expects earnings in the range of $6.09 – $6.20 per share, compared to its previous guidance of $5.98 – $6.09 per share. The updated outlook represents a surge of 10 – 12 percent on a year-over-year basis.

Like Philip Morris International Inc. (NYSE:PM), Tesla, Inc. (NASDAQ:TSLA), AT&T Inc. (NYSE:T) and CSX Corporation (NASDAQ:CSX) also smashed earnings estimates for the second quarter.

6. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 68

Shares of Abbott Laboratories (NYSE:ABT) closed higher on Thursday, July 21, 2022, following its better-than-expected financial performance for the second quarter. The health care giant earned $1.43 per share on an adjusted basis, up from $1.17 per share in the year-ago period.

Revenue came in at $11.3 billion, up 10.1 percent over the second quarter of 2021. Analysts were expecting Abbott Laboratories (NYSE:ABT) to report earnings of $1.12 per share on revenue of $10.29 billion.

Looking forward, Abbott Laboratories (NYSE:ABT) now expects to report adjusted earnings of at least $4.90 per share for the full year. The outlook is slightly above analysts’ average estimate of $4.88 per share.

Discussing the results, CEO Robert B. Ford said:

“We achieved another quarter of strong growth and are raising our full-year EPS guidance. Our new product pipeline has remained highly productive, and our diversified business has continued to be resilient in a challenging macro environment.”

5. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 72

Shares of CSX Corporation (NASDAQ:CSX) jumped over four percent on Thursday, July 21, 2022, after announcing its financial results for the second quarter above expectations. The provider of rail-based freight transportation services reported earnings of 54 cents per share, compared to 52 cents per share in the year-ago period.

In addition, CSX Corporation (NASDAQ:CSX) posted revenue of $3.82 billion, up 28 percent on a year-over-year basis. The results exceeded the consensus of 47 cents per share for earnings and $3.65 billion for revenue.

Commenting on the quarter, CEO of CSX Corporation (NASDAQ:CSX), James M. Foote, said:

“Though volatile commodity prices and persistent inflation have added uncertainty to the economy, our efforts remain focused on adding the resources needed to deliver improvements in our network performance, lift customer satisfaction and develop new rail service solutions to drive meaningful growth over the long term.”

4. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 74

AT&T Inc. (NYSE:T) recently surpassed profit and sales expectations for the second quarter. However, its shares fell nearly seven percent on Thursday, July 21, 2022, apparently due to a lower-than-expected free cash flow for the quarter.

The Texas-based telecommunications giant reported adjusted earnings of 65 cents per share, beating the consensus of 61 cents per share. The quarterly revenue of $29.64 billion also came in above the expectations of $29.56 billion. In addition, AT&T Inc. (NYSE:T) reported postpaid net additions of just over 1 million, well ahead of the consensus of 0.55 million.

On the downside, AT&T Inc. (NYSE:T) generated a free cash flow of $1.4 billion in the quarter, missing the expectations of $4.7 billion with a big margin. The company also lowered its full-year free cash flow outlook to $14 billion versus its previous guidance of $16 billion.

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

Shares of Tesla, Inc. (NASDAQ:TSLA) rallied nearly 10 percent on Thursday, July 21, 2022, after delivering another solid quarter. The electric vehicle (EV) giant reported adjusted earnings of $2.27 per share for Q2, well above $1.45 per share in the same period of 2021.

Revenue for the quarter also climbed 42 percent versus last year to $16.9 billion. Analysts were expecting Tesla, Inc. (NASDAQ:TSLA) to report earnings of $1.80 per share on sales of $17.1 billion.

On the downside, Tesla, Inc. (NASDAQ:TSLA) reported an automotive gross margin of 27.9 percent, compared to 28.4 percent in the year-ago period.

Discussing the results, Tesla, Inc. (NASDAQ:TSLA) said in a statement:

“We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history.”

2. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 83

Shares of Danaher Corporation (NYSE:DHR) climbed to a nearly three-month high on Thursday, July 21, 2022, after the Washington-based company surpassed profit and sales expectations for the second quarter.

Danaher Corporation (NYSE:DHR) reported adjusted earnings of $2.76 per share, smashing the expectations of $2.35 per share. The quarterly revenue of $7.8 billion also surpassed analysts’ average estimate of $7.32 billion.

Speaking on the results, CEO of Danaher Corporation (NYSE:DHR), Rainer M. Blair, said:

“We are pleased with our strong start to 2022. Our teams executed well in a challenging environment to deliver high-single digit core revenue growth, double-digit adjusted earnings per share growth and $2.0 billion of operating cash flow. We were particularly encouraged with the high-single digit growth in our base business and believe we gained market share across the portfolio.”

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 89

Shares of Union Pacific Corporation (NYSE:UNP) slightly moved down on Thursday, July 21, 2022, despite beating financial expectations for the second quarter. The railroad operator earned $2.93 per share, up from $2.72 per share in the year-ago quarter.

In addition, Union Pacific Corporation (NYSE:UNP) posted revenue of $6.3 billion, up 14 percent from the comparable period of 2021. Analysts were expecting Union Pacific Corporation (NYSE:UNP) to earn $2.84 per share on sales of $6.12 billion.

Among other updates, Union Pacific Corporation (NYSE:UNP) announced that it repurchased 3.1 million shares of its common stock for $722 million during the second quarter.

Discussing the results, CEO Lance Fritz said in a statement:

“As anticipated, the Second Quarter was a tough one as we limited carloadings and increased expenses to recover network fluidity. We also experienced record high fuel prices and increasing inflation, adding pressure to our total costs. Offsetting the cost pressures were higher fuel surcharge revenue, solid core pricing, a positive mix, and continued train size initiatives.”

You can also take a peek at The 10 Best Bank Stocks to Buy Amid Rising Inflation and Jim Cramer Recommends These 10 Stocks For Recession.

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