11 Earnings Reports Catching Investors’ Attention

In this article, we will take a look at the 11 earnings reports catching investors’ attention.

Popular tech stocks, including Block, Inc. (NYSE:SQ), Datadog, Inc. (NASDAQ:DDOG) and Shopify Inc. (NYSE:SHOP), were spotted trading on heavy volume after posting earnings reports for the first quarter.

Shares of Block and Shopify fell in the pre-market trading Friday, May 6, after missing financial expectations for Q1. In comparison, Datadog shares dropped even after posting record profit and sales.

Many other stocks, including e-commerce company MercadoLibre, Inc. (NASDAQ:MELI) and biotech company Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), also came into the spotlight after posting their financial results.

Earnings Reports Catching Investors’ Attention

11. Mettler-Toledo International Inc. (NYSE:MTD)

Number of Hedge Fund Holders: 34

Mettler-Toledo International Inc. (NYSE:MTD) recently announced better-than-expected financial results for the first quarter. The precision instruments maker reported adjusted earnings of $7.87 per share, up from $6.56 per share in the same period of 2021.

Revenue for the quarter rose 12 percent on a year-over-year basis to $897.79 million. Analysts were expecting Mettler-Toledo International Inc. (NYSE:MTD) to earn $7.24 per share on revenue of $867.82 million.

Looking forward, Mettler-Toledo International Inc. (NYSE:MTD) expects adjusted earnings in the range of $38.20 – $38.50 per share and sales growth of around 8 percent for the full year.

Discussing the results, CEO Patrick Kaltenbach said in a statement:

“Despite continued higher costs associated with challenges in the global supply chain, we had a very good increase in operating profit and earnings growth, which is particularly impressive given the excellent growth in the prior year.”

10. Monster Beverage Corporation (NASDAQ:MNST)

Number of Hedge Fund Holders: 47

Shares of Monster Beverage Corporation (NASDAQ:MNST) fell nearly two percent in the after-hours trading session on Thursday, May 5, 2022, after missing profit expectations for the first quarter.

Monster Beverage Corporation (NASDAQ:MNST) blamed higher freight and fuel costs for affecting its results. The company also incurred higher expenses related to ingredients and packaging in the quarter.

For the first quarter, Monster Beverage Corporation (NASDAQ:MNST) reported earnings of 55 cents per share, below the consensus of 61 cents per share. On the bright side, revenue for the quarter climbed 22.1 percent versus last year to $1.52 billion and exceeded the expectations of $1.43 billion.

Like Monster Beverage Corporation (NASDAQ:MNST), investors are also keeping an eye on Block, Inc. (NYSE:SQ), Datadog, Inc. (NASDAQ:DDOG) and Shopify Inc. (NYSE:SHOP) following their earnings reports.

9. DoorDash, Inc. (NYSE:DASH)

Number of Hedge Fund Holders: 52

Shares of DoorDash, Inc. (NYSE:DASH) jumped over seven percent in the extended hours on Thursday, May 5, 2022, despite posting a wider-than-expected loss for the first quarter. The online food delivery platform reported a loss of 48 cents per share, compared to a loss of 34 cents per share in the same period of 2021. Analysts were looking for a loss of 41 cents per share.

In addition, DoorDash, Inc. (NYSE:DASH) posted revenue of $1.5 billion, up 35 percent on a year-over-year basis and above expectations of $1.38 billion. Total orders for the quarter rose 23 percent to 404 million, while its marketplace gross-order value (GOV) jumped 25 percent on a year-over-year basis to $12.4 billion.

Addressing shareholders in a letter, DoorDash, Inc. (NYSE:DASH) said:

“In the two years from Q1 2020 to Q1 2022, we grew orders in our U.S. Restaurant Marketplace by over 250%, grew category share by 14 percentage points, and significantly increased Contribution Profit in the category. Over this time period, we also substantially increased Contribution Profit as a percentage of Marketplace GOV in the category, despite significant ongoing investments in consumer, Dasher, and merchant acquisition.”

8. Illumina, Inc. (NASDAQ:ILMN)

Number of Hedge Fund Holders: 53

Illumina, Inc. (NASDAQ:ILMN) recently surpassed profit expectations for the first quarter amid solid growth across its flagship segments. The San Diego-based company earned $1.07 per share on an adjusted basis, topping expectations of 90 cents per share.

Revenue for the quarter advanced 12 percent on a year-over-year basis to $1.22 billion and matched the consensus forecast. Product revenue jumped 12 percent to $1.07 billion, while Service and other revenue increased 9 percent to $153 million in the quarter.

Illumina, Inc. (NASDAQ:ILMN) also reaffirmed its financial outlook for fiscal 2022. It continues to expect adjusted earnings between $4.00 – $4.20 per share and revenue growth in the range of 14 – 16 percent for the full year.

7. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 55

Cloudflare, Inc. (NYSE:NET) managed to beat financial expectations for the first quarter. However, its profit outlook for the second quarter disappointed investors, sending its shares down to a nearly one-year low in the after-hours trading session on Thursday, May 5, 2022.

The cybersecurity company reported adjusted earnings of 1 cent per share, swinging for an adjusted loss of 3 cents per share in the comparable period of 2021. In addition, Cloudflare, Inc. (NYSE:NET) posted revenue of $212.2 million, significantly higher than $138.1 million in the year-ago quarter. The results were better than analysts’ average estimate for break-even earnings per share and revenue of $205.7 million

For the second quarter, Cloudflare, Inc. (NYSE:NET) expects an adjusted loss of 1 cent per share to break even per share and revenue between $226.5 – $227.5 million. This compares analysts’ expectations for break-even earnings on revenue of $217.9 million.

Like Cloudflare, Inc. (NYSE:NET), Block, Inc. (NYSE:SQ), Datadog, Inc. (NASDAQ:DDOG) and Shopify Inc. (NYSE:SHOP) also came into the limelight after releasing their earnings reports.

6. McKesson Corporation (NYSE:MCK)

Number of Hedge Fund Holders: 57

Shares of McKesson Corporation (NYSE:MCK) slightly moved down in the extended hours on Thursday, May 5, 2022, after the Texas-based healthcare company posted a lower-than-expected profit for its fiscal fourth quarter.

McKesson Corporation (NYSE:MCK) reported adjusted earnings of $5.83 per share, missing the consensus of $6.04 per share. On the positive side, the quarterly revenue of $66.1 billion exceeded the expectations of $63.61 billion.

McKesson Corporation (NYSE:MCK) also released its segment-wise sales results. Revenue from the U.S. Pharmaceutical segment jumped 14 percent on a year-over-year basis to $53.7 billion, representing 81 percent of the total sales. The surge was primarily driven by higher specialty products volume.

In comparison, revenue from the Prescription Technology Solutions business climbed 29 percent to $1 billion, while revenue from the Medical-Surgical Solutions unit increased 6 percent to $2.9 billion in the quarter. Moreover, international revenue rose 3 percent to $8.8 billion.

McKesson Corporation (NYSE:MCK) also issued the profit outlook for its fiscal year 2023. The company guided for adjusted earnings in the range of $22.90 – $23.60 per share for the full year.

Speaking on the results, CEO Brian Tyler said in a statement:

“We are encouraged by the growth in our strategic pillars of oncology and biopharma services, and the strength in our core North American distribution businesses. Our results reflect the unwavering commitment of our employees and their resilience to deliver for our customers, patients, our communities, and our shareholders.”

5. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 61

Shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) fell over five percent in the pre-market trading session on Friday, May 6, 2022, despite announcing better-than-expected financial results for the first quarter.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) earned $3.52 per share on an adjusted basis, up from $2.98 per share in the year-ago period. Revenue for the quarter jumped 22 percent on a year-over-year basis to $2.10 billion. The results were slightly better than the consensus of $3.49 per share for earnings and $2.08 billion for revenue.

The biopharmaceutical company also reaffirmed its sales outlook for fiscal 2022. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) continues to expect product revenue in the range of $8.4 – $8.6 billion for the full year.

Discussing the results, CEO Reshma Kewalramani said:

“With yet another quarter of strong revenue performance characterized by 22% year-over-year growth, we are well positioned for continued innovation and sustained growth as we work to bring additional transformative medicines to more patients around the globe.”

4. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 73

Datadog, Inc. (NASDAQ:DDOG) recently delivered solid profit and sales for the first quarter along with an upbeat outlook for the full year. Yet, Datadog stock fell nearly six percent on Thursday, May 5, 2022, following the results for no apparent reason.

The software company reported adjusted earnings of 24 cents per share, crushing expectations of 11 cents per share. In addition, Datadog, Inc. (NASDAQ:DDOG) posted revenue of $363 million, up 83 percent on a year-over-year basis and above estimates of $337.8 million.

Datadog, Inc. (NASDAQ:DDOG) also raised its profit outlook for the full year. The company now anticipates adjusted earnings in the range of 70 – 77 cents per share, above analysts’ average estimate of 52 cents per share.

Speaking on the results, CEO Olivier Pomel said:

“Companies are increasingly relying on software and cloud services to drive revenue, competitive advantage, and positive business outcomes. By using our unified, cloud-native, end-to-end observability and security platform, our customers can understand, manage, and drive value from their exponentially growing and ephemeral cloud environments.”

3. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 74

Shares of MercadoLibre, Inc. (NASDAQ:MELI) turned green in the pre-market trading session on Friday, May 6, 2022, after its financial results for the first quarter improved significantly over last year.

MercadoLibre, Inc. (NASDAQ:MELI) reported earnings of $1.30 per share, swinging from a loss of 68 cents per share in the year-ago period. Revenue for the quarter climbed 63 percent versus last year to $2.2 billion. Analysts were looking for earnings of $1.35 per share on revenue of $2.02 billion.

Among other updates, MercadoLibre, Inc. (NASDAQ:MELI) reported that total payment volume for the quarter jumped to $25.3 billion, from $14.72 billion in the same period of the prior year. In addition, gross merchandise volume increased to $7.7 billion, from $6.05 billion in the year-ago quarter.

Addressing shareholders, MercadoLibre, Inc. (NASDAQ:MELI) said in a statement:

“Mercado Libre is coming out of the pandemic period stronger than we were two years ago with a more mature business at scale, a larger team with complementary capabilities and much better services and experiences for our users in all of our key geographies. While the business is stronger than ever before, we are facing a challenging backdrop with uncertainty surrounding consumer spending, higher interest rates and higher inflation in addition to coming out of a period of social mobility restrictions in key markets.”

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 86

Shopify Inc. (NYSE:SHOP) announced disappointing profit and sales for the first quarter on Thursday, May 5, 2022. As a result, Shopify stock fell for two straight days, plunging to a nearly two-year low.

The Ontario-based e-commerce company reported adjusted earnings of 20 cents per share, missing analysts’ average estimate of $1 per share with a big margin. Moreover, Shopify Inc. (NYSE:SHOP) posted revenue of $1.20 billion, up 22 percent on a year-over-year basis but well below the consensus of $1.60 billion.

Shopify Inc. (NYSE:SHOP) also disclosed its segment-wise sales performance. Its subscription solutions revenue rose 8 percent to $344.8 million, as more merchants joined the platform. In comparison, merchant solutions revenue for the quarter climbed 29 percent to $858.9 million.

Moving forward, Shopify Inc. (NYSE:SHOP) expects its year-over-year sales growth to be lower during the first half of 2022, mainly due to tougher comparisons with the linked period of 2021.

1. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 96

Shares of Block, Inc. (NYSE:SQ) plunged to a nearly one-year low in the pre-market trading session on Friday, May 6, 2022, after missing profit and sales expectations for the first quarter.

Block, Inc. (NYSE:SQ) reported adjusted earnings of 18 cents per share, well below 41 cents per share in the year-ago period. Revenue for the quarter also dropped 22 percent on a year-over-year basis to $3.96 billion. The results missed the consensus of 21 cents per share for earnings and $4.14 billion for revenue.

If we look at the sales performance of flagship segments of Block, Inc. (NYSE:SQ), transaction-based revenue jumped 28 percent to $1.23 billion, while subscription and services-based revenue rallied 72 percent to $960 million in the quarter. On the downside, Bitcoin revenue plummeted 50.1 percent to $1.73 billion, negatively impacting the total quarterly sales.

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Disclosure: None. 11 Earnings Reports Catching Investors’ Attention is originally published on Insider Monkey.