5 Earnings Reports Everyone is Talking About

In this article, we discuss the 5 earnings reports everyone is talking about. If you want to read our detailed analysis of these companies, go directly to the 10 Earnings Reports Everyone is Talking About.

5. The Bank of New York Mellon Corporation (NYSE:BK)

Number of Hedge Fund Holders: 52

Shares of The Bank of New York Mellon Corporation (NYSE:BK) slightly moved up on Tuesday, 19 October 2021, after announcing better-than-expected financial results for the third quarter.

The provider of investment management services reported earnings of $1.04 per share, up from 98 cents per share in the comparable quarter of 2020. Revenue increased nearly five percent on a year-over-year basis to $4.04 billion. Analysts were expecting The Bank of New York Mellon Corporation (NYSE:BK) to report earnings of $1.01 per share on revenue of $3.95 billion.

On the downside, net interest revenue slipped to $641 million, compared to $703 million in the year-ago quarter. The drop was mainly attributed to weak interest rates. The Bank of New York Mellon Corporation (NYSE:BK) also reported that it repurchased 38.1 million shares of its common stock for $2 billion during the quarter.

Speaking on the results, CEO Todd Gibbons said:

“Our financial performance this quarter reflects healthy and broad-based organic growth across our businesses as well as a supportive global markets backdrop.”

4. Kansas City Southern (NYSE:KSU)

Number of Hedge Fund Holders: 61

Kansas City Southern (NYSE:KSU) recently announced mixed financial results for the third quarter. The railroad operator reported adjusted earnings of $2.02 per share for the three months ended 30 September 2021, missing the consensus forecast of $2.04 per share. The company blamed plant shutdowns and service interruptions for the weak profit.

Revenue for the quarter jumped 13 percent on a year-over-year basis to $744 million, just ahead of analysts’ average estimate of $722.4 million. Kansas City Southern (NYSE:KSU) had reported adjusted earnings of $1.96 per share on revenue of $659.6 in the comparable period of 2020.

CEO Patrick Ottensmeyer expressed his satisfaction with the results. Ottensmeyer said in a statement:

“We are encouraged that despite several commercial headwinds, our network is performing extremely well and we are delivering near record velocity and dwell. Underlying industrial demand is strong, and KCS has maintained resources to prioritize customer service as volumes return to the network. As certain supply chain disruptions are resolved and our revenue environment improves, our network will be well-positioned to handle incremental volume while continuing to provide premium service to our customers.”

3. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 68

Shares of The Procter & Gamble Company (NYSE:PG) slipped over one percent on Tuesday, 19 October 2021, after its fiscal first-quarter profit dropped versus last year. The consumer goods giant reported core earnings of $1.61 per share, down from $1.63 per share in the year-ago quarter.

In addition, The Procter & Gamble Company (NYSE:PG) posted revenue of $20.34 billion, translating to a surge of five percent on a year-over-year basis. The results were better than the consensus forecast of $1.59 per share for earnings and $19.84 billion for revenue.

If we look at the performance of key segments, revenue at both beauty and grooming segments increased 5 percent, while health care revenue jumped 8 percent versus last year.

The Procter & Gamble Company (NYSE:PG) also reaffirmed the financial outlook for its fiscal year 2022. It expects core earnings per share to grow in the range of 3 – 6 percent and revenue growth between 2 – 4 percent for the full year.

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Shares of Johnson & Johnson (NYSE:JNJ) rose more than two percent on Tuesday, 19 October 2021, after delivering impressive earnings for the third quarter and lifting its full-year guidance. The company’s adjusted earnings rose 18.2 percent on a year-over-year basis to $2.60 per share, crushing analysts’ average estimate of $2.35 per share.

Revenue for the quarter jumped 10.7 percent to $23.34 billion but missed the consensus forecast of $23.64 billion. If we look at the year-over-year performance of key segments, revenue from the consumer health segment rose 5.7 percent, revenue from the pharmaceutical unit jumped 13.8 percent, while revenue from the medical devices segment surged 7.6 percent.

Looking forward, Johnson & Johnson (NYSE:JNJ) expects adjusted earnings in the range of $9.77 – $9.82 per share for the full year, up from its previous outlook between $9.60 – $9.70 per share. The updated guidance is better than the consensus forecast of $9.71 per share.

Commenting on the quarter, CEO Alex Gorsky said:

“Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health.”

1. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) recently announced better-than-expected financial results for the third quarter. However, the video-streaming giant warned that higher programming costs will hurt its operating margin in the fourth quarter.

The warning apparently sent Netflix, Inc. (NASDAQ:NFLX) shares down more than two percent in the pre-market trading session on Wednesday, 20 October, 2021.

For the third quarter, Netflix, Inc. (NASDAQ:NFLX) reported earnings of $3.19 per share, well above $1.74 per share in the same period last year. Revenue for the quarter came in at $7.48 billion, higher than $6.44 billion in the year-ago quarter. Analysts were expecting Netflix, Inc. (NASDAQ:NFLX) to report earnings of $2.57 per share on revenue of $7.48 billion.

In addition, Netflix, Inc. (NASDAQ:NFLX) announced that it added 4.4 million new subscribers in the quarter, crushing the consensus forecast of 3.78 million. Looking forward, the company expects to add 8.5 million new subscribers in the current quarter, just above analysts’ average estimate of 8.4 million.

On the downside, Netflix, Inc. (NASDAQ:NFLX) said that production of new content will weigh on its profitability in the fourth quarter. The company expects operating margin of about 6.5 percent in the current quarter, compared to 14 percent in the fourth quarter of 2020.

You can also take a peek at Top 10 SPACs to Buy According to Richard Gerson’s Falcon Edge Capital and 10 Best Oil Stocks To Buy According To Hedge Funds.

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