10 Companies That Topped Profit Expectations

In this article, we will take a look at the 10 companies that topped profit expectations.

Notable stocks from the consumer cyclical sector, including Booking Holdings Inc. (NASDAQ:BKNG), eBay Inc. (NASDAQ:EBAY) and Bath & Body Works, Inc. (NYSE:BBWI), recently posted better-than-expected profit for the fourth quarter.

Shares of eBay and Bath & Body Works turned green following the results. However, Booking Holdings stock fell despite its upbeat quarterly performance. The drop apparently followed investors’ concerns that the ongoing conflict between Russia and Ukraine could hamper the global travel industry.

Several other stocks, including car rental company Hertz Global Holdings, Inc. (NASDAQ:HTZ) and biotechnology firm Moderna, Inc. (NASDAQ:MRNA), also posted earnings reports for their respective quarters.

Photo by Nick Chong on Unsplash

10. DigitalOcean Holdings, Inc. (NYSE:DOCN)

Number of Hedge Fund Holders: 25

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) climbed over 18 percent on Thursday, February 24, 2022, after surprising investors with its solid fourth-quarter performance. The New York-based cloud infrastructure provider reported adjusted earnings of 10 cents per share, topping expectations of 9 cents per share.

Revenue for the quarter advanced 37 percent on a year-over-year basis to $119.7 million, ahead of the consensus estimates of $119.05 million. In addition, DigitalOcean Holdings, Inc. (NYSE:DOCN) reported that the average revenue per customer in the quarter rose 29 percent versus last year to $65.87.

DigitalOcean Holdings, Inc. (NYSE:DOCN) also issued its financial outlook for the first quarter. It guided for adjusted earnings in the range of 10 – 12 cents per share and revenue between $126 – $126.5 million.

Speaking on the results, CEO Yancey Spruill said in a statement:

“2021 was a transformational year for DigitalOcean. We achieved an exciting milestone in becoming a public company, built out our executive leadership team and board, accelerated our revenue growth and achieved our first year of positive free cash flow.”

9. NetApp, Inc. (NASDAQ:NTAP)

Number of Hedge Fund Holders: 36

NetApp, Inc. (NASDAQ:NTAP) recently announced better-than-expected financial results for its fiscal third quarter. However, its profit outlook for the current quarter missed expectations. Its shares apparently plummeted to a nearly six-month low on Thursday, February 24, 2022, following the weak outlook.

The provider of data management solutions reported adjusted earnings of $1.44 per share, up from $1.10 per share in the year-ago period. Revenue came in at $1.61 billion versus $1.47 billion for the comparable period of 2021. Analysts expected NetApp, Inc. (NASDAQ:NTAP) to post earnings of $1.28 per share on revenue of $1.61 billion.

Looking forward, NetApp, Inc. (NASDAQ:NTAP) expects adjusted earnings in the range of $1.21 – $1.31 per share and revenue between $1.635 – $1.735 billion for its fiscal fourth quarter. This compares to analysts’ average estimate of $1.35 per share for earnings and $1.67 billion for revenue.

Like NetApp, Inc. (NASDAQ:NTAP), investors were also closely watching Booking Holdings Inc. (NASDAQ:BKNG), eBay Inc. (NASDAQ: EBAY) and Bath & Body Works, Inc. (NYSE:BBWI) following their earnings reports.

8. Elanco Animal Health Incorporated (NYSE:ELAN)

Number of Hedge Fund Holders: 38

Shares of Elanco Animal Health Incorporated (NYSE:ELAN) rose over eight percent on Thursday, February 24, 2022, after the Indiana-based animal health company managed to surpass expectations for the fourth quarter.

Elanco Animal Health Incorporated (NYSE:ELAN) earned 21 cents per share on an adjusted basis, above the consensus of 17 cents per share. Revenue for the quarter slipped 2 percent on a year-over-year basis to $1.11 billion but came in just above analysts’ average estimate of $1.10 billion.

For the first quarter, Elanco Animal Health Incorporated (NYSE:ELAN) projected adjusted earnings of 33 – 38 cents per share and revenue between $1.2 – $1.23 billion. Analysts were looking for earnings of 37 cents per share on revenue of $1.25 billion.

Commenting on the quarter, CEO Jeff Simmons said in a statement:

“The fourth quarter of 2021 represents our 5th consecutive quarter of outperforming our expectations. Our diverse portfolio delivered across the business – growing in all three regions and in four out of five species, demonstrating the durable growth profile of our business.”

7. Insulet Corporation (NASDAQ:PODD)

Number of Hedge Fund Holders: 39

Shares of Insulet Corporation (NASDAQ:PODD) closed higher on Thursday, February 24, 2022, following its upbeat financial performance for the fourth quarter. The Massachusetts-based medical device company reported adjusted earnings of 42 cents per share, a significant improvement from a loss of 26 cents per share in the fourth quarter of 2020. Analysts were looking for earnings of 32 cents per share.

In addition, Insulet Corporation (NASDAQ:PODD) posted revenue of $307.7 million, up 25 percent versus last year and above the consensus of $301.06 million. Revenue from its flagship insulin infusion device Omnipod jumped 19.3 percent to $275.8 million in the quarter.

Insulet Corporation (NASDAQ:PODD) also issued its sales outlook for the first quarter. The company projected revenue growth of 13 – 16 percent for the current quarter.

Like Insulet Corporation (NASDAQ:PODD), Booking Holdings Inc. (NASDAQ:BKNG), eBay Inc. (NASDAQ: EBAY) and Bath & Body Works, Inc. (NYSE:BBWI) also came into the limelight after posting their financial results.

6. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 43

Shares of Moderna, Inc. (NASDAQ:MRNA) climbed more than 15 percent on Thursday, February 24, 2022, after the rapidly growing biotechnology company delivered another solid quarter on the heels of massive sales of its coronavirus vaccine.

Moderna, Inc. (NASDAQ:MRNA) reported adjusted earnings of $11.29 per share, crushing expectations of $9.90 per share. Earnings were significantly higher than 69 cents per share it posted for the fourth quarter of 2020.

Revenue for the quarter also skyrocketed to $7.2 billion versus $571 million in the year-ago period. Analysts were expecting Moderna, Inc. (NASDAQ:MRNA) to generate revenue of $6.78 billion in the quarter.

In addition, the company reported that its Covid-19 vaccine brought in revenue of $6.9 billion in the fourth quarter. Looking forward, Moderna, Inc. (NASDAQ:MRNA) expects its coronavirus vaccine to generate revenue of around $19 billion in the current fiscal year. Meanwhile, the company is also trying to diversify its product portfolio. For instance, it is currently conducting clinical studies for vaccines against common respiratory viruses.

5. Quanta Services, Inc. (NYSE:PWR)

Number of Hedge Fund Holders: 48

Shares of Quanta Services, Inc. (NYSE:PWR) recently climbed to an all-time high following its upbeat financial performance for the fourth quarter. The Houston-based company reported adjusted earnings of $1.54 per share, up from $1.22 per share reported for the comparable period of 2020.

Revenue came in at $3.92 billion versus $2.91 billion in the year-ago period. Analysts were expecting Quanta Services, Inc. (NYSE:PWR) to post earnings of $1.04 per share on $2.98 billion in revenues.

Quanta Services, Inc. (NYSE:PWR) also issued its financial outlook for 2022. It expects adjusted earnings in the range of $6 – $6.50 per share and revenue between $16 – $16.50 billion for the current year.

Commenting on the quarter, CEO Duke Austin said:

“Quanta’s strong fourth quarter results complete a year in which we produced record revenues, profits and backlog, while also strategically transforming our ability to collaborate with our customers on their energy-transition initiatives.”

4. eBay Inc. (NASDAQ:EBAY)

Number of Hedge Fund Holders: 53

eBay Inc. (NASDAQ:EBAY) closed higher on Thursday, February 24, 2022, after announcing better-than-expected financial results for the fourth quarter. The California-based e-commerce company earned $1.05 per share on an adjusted basis, topping expectations of 99 cents per share.

Revenue for the quarter rose 5 percent on a year-over-year basis to $2.6 billion and matched the consensus forecast. Among other updates, eBay Inc. (NASDAQ:EBAY) reported that annual active buyers in the quarter fell 9 percent to 147 million, while annual active sellers decreased 8 percent to 17 million.

Looking forward, eBay Inc. (NASDAQ:EBAY) guided for adjusted earnings in the range of $1.01 – $1.05 per share and revenue between $2.43 – $2.48 billion for the first quarter. The outlook missed the consensus for $1.08 per share for earnings and $2.61 billion for revenue.

Commenting on the results, CEO Jamie Iannone said in a statement:

“During the quarter, we completed our multi-year payments transition, and generated growth in both our advertising business and focus categories. As we continue to accelerate our strategy, we are well positioned for future growth.”

3. Hertz Global Holdings, Inc. (NASDAQ:HTZ)

Number of Hedge Fund Holders: 55

Shares of Hertz Global Holdings, Inc. (NASDAQ:HTZ) jumped nearly 15 percent on Thursday, February 24, 2022, after the Florida-based car rental company topped profit expectations for the fourth quarter.

Hertz Global Holdings, Inc. (NASDAQ:HTZ) reported adjusted earnings of 91 cents per share, compared to a loss of $1.20 per share in the fourth quarter of 2020. The latest quarterly earnings easily surpassed the consensus of 76 cents per share.

In addition, Hertz Global Holdings, Inc. (NASDAQ:HTZ) posted revenue of $1.95 billion for the quarter. The revenue numbers represented a decent surge of 78 percent on a year-over-year basis but came in slightly below analysts’ average estimate of $1.98 billion

Speaking on the results, CEO Mark Fields said in a statement:

“2021 was a transformative year for Hertz. Sustained structural improvements and disciplined fleet management contributed to a strong performance across our top and bottom line, despite the challenges presented by COVID, supply chain constraints and labor shortages.”

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

Number of Hedge Fund Holders: 62

Shares of Bath & Body Works, Inc. (NYSE:BBWI) closed higher on Thursday, February 24, 2022, after posting its fourth-quarter profit and sales above expectations. The Ohio-based retail store chain reported adjusted earnings of $2.30 per share, up 17 percent from the same period of 2020.

Revenue for the quarter also surged 11 percent on a year-over-year basis to $3.027 billion. Analysts were expecting Bath & Body Works, Inc. (NYSE:BBWI) to earn $2 per share on revenue of $2.64 billion.

Bath & Body Works, Inc. (NYSE:BBWI) also issued its profit outlook for Q1 and FY 2022. It expects earnings in the range of 47 – 55 cents per share for the current quarter and between $4.30 – $4.70 for the full year.

Discussing the results, CEO Andrew Meslow said:

“We are very pleased to have delivered record sales and earnings results for both the fourth quarter and full-year 2021, particularly given the continued dynamic operating environment. Our confidence in the business and our positive momentum is reflected in the Board’s recent authorization of a new $1.5 billion share repurchase program and 33 percent increase to our annual dividend.”

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 92

Booking Holdings Inc. (NASDAQ:BKNG) recently announced record financial results for the fourth quarter. Yet, its shares fell over seven percent on Thursday, February 24, apparently due to investors’ concerns that the Russia-Ukraine war could impact the global travel industry.

The Connecticut-based online travel services provider reported adjusted earnings of $15.83 per share, compared to a loss of 57 cents per share for the same period one year ago. In addition, Booking Holdings Inc. (NASDAQ:BKNG) posted revenue of $3 billion, representing a huge surge of 141 percent over the comparable period of 2020. The results easily topped analysts’ average estimate of at $13.68 per share for earnings and $2.85 billion for revenue.

Among other updates, Booking Holdings Inc. (NASDAQ:BKNG) reported that gross travel bookings for the quarter climbed 160 percent versus last year $19 billion, while room night booked soared 100 percent on a year-over-year basis.

Speaking on the results, CEO Glenn Fogel said:

“I am encouraged by the meaningful improvement in bookings we have seen so far in the first quarter of 2022. I believe we are well positioned as travel demand recovers, however, we do expect there will still be periods where COVID negatively impacts travel trends as we move through the year.”

You can also take a peek at Billionaire Leon Cooperman Is Buying These 10 Stocks and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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Disclosure: None. 10 Companies That Topped Profit Expectations is originally published on Insider Monkey