5 Earnings Reports Catching Investors’ Attention

In this article, we discuss the 5 earnings reports catching investors’ attention. If you want to read our detailed analysis of these companies, go directly to the 11 Earnings Reports Catching Investors’ Attention.

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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