10 Must-Watch Earnings Reports

In this article, we will take a look at the 10 must-watch earnings reports.

The second-quarter earnings season is coming to an end. While the majority of U.S. stocks surpassed expectations initially, we have witnessed mixed reports in the latter half of the season.

Companies that recently released their financial results include notable names such as Agilent Technologies, Inc. (NYSE: A), Synopsys, Inc. (NASDAQ: SNPS), Analog Devices, Inc. (NASDAQ: ADI), The TJX Companies, Inc. (NYSE: TJX), and Target Corporation (NYSE: TGT).

In this article, we will be discussing 10 must-watch earnings reports. So, without wasting any time, let’s move on to the list.

10 Must-Watch Earnings Reports

10. ZTO Express (Cayman) Inc. (NYSE: ZTO)

Number of Hedge Fund Holders: 21

ZTO Express (Cayman) Inc. (NYSE: ZTO) recently announced mixed financial results for the second quarter ended June 30. The Chinese delivery company reported earnings of 24 cents per share, ahead of the consensus forecast of 22 cents per share.

Total revenue for the quarter rose 14.4 percent on a year-over-year basis to $1.13 billion but fell slightly short of analysts’ average estimate of $1.19 billion. Parcel volume in the quarter came in at 5,772 million, up 25.6 percent from the year-ago quarter.

Speaking on the results, CEO Meisong Lai said, “At the current rate of medium to high level of growth, China’s express delivery industry will likely grow daily volume to surpass 400 million or more parcels in the next 2-3 years.  Capacity and operational efficiencies will set apart the winners and the rest.  ZTO has undoubtedly established infrastructure advantages with years of consistent investments and innovations.”

ZTO Express (Cayman) Inc. (NYSE: ZTO) also reiterated its parcel volume outlook for 2021. It expects parcel volume between 22.95 billion and 23.80 billion for the full year, representing a year-over-year surge in the range of 35-40 percent.

9. Alcon Inc. (NYSE: ALC)

Number of Hedge Fund Holders: 22

Alcon Inc. (NYSE: ALC) shares have been trading higher since delivering impressive results for the second quarter. The provider of eye care devices reported earnings of 31 cents per share for the three months ended June 30, compared to a loss of 86 cents per share in the year-ago quarter.

Total revenue for the quarter climbed 75 percent on a year-over-year basis to $2.1 billion. If we look at the performance of its flagship segments, surgical revenue skyrocketed 100 percent to $1.2 billion. In comparison, vision care revenue jumped 49 percent to $0.9 billion in the quarter.

Alcon Inc. (NYSE: ALC) also raised its financial outlook for fiscal 2021. It now expects earnings in the range of $2-$2.10 per share versus its previous forecast of $1.85-$1.95 per share.

Revenue for the full year is expected to come between $8 billion to $8.2 billion, compared to its previous guidance between $7.8 billion and $8 billion. Alcon Inc. (NYSE: ALC) shares hit a new 52-week high of $81.83 following Q2 results and updated outlook.

Apart from Alcon Inc. (NYSE: ALC), some other stocks investors are closely watching after their earnings reports include Agilent Technologies, Inc. (NYSE: A), Synopsys, Inc. (NASDAQ: SNPS), Analog Devices, Inc. (NASDAQ: ADI), The TJX Companies, Inc. (NYSE: TJX), and Target Corporation (NYSE: TGT).

8. JOYY Inc. (NASDAQ: YY)

Number of Hedge Fund Holders: 24

JOYY Inc. (NASDAQ: YY) is trending after posting solid results for the second quarter. The video-based social media platform said that its adjusted loss narrowed to 1 cent per share, marking a sharp decline from a loss of 63 cents per share in the comparable period of 2020.

Total revenue for the quarter climbed nearly 40 percent on a year-over-year basis to $661.7 million. The latest quarterly performance was mainly driven by higher streaming revenue from its flagship app, BIGO.

Commenting on the quarter, CEO David Xueling Li said, “Despite the negative impact from local holidays in certain regions, we maintained the growth trajectory of our global business, and managed to achieve significant progress in further enriching our localized content offering in the second quarter. With the enhancement in our product monetization, improvement in our operating leverage, and execution of a more prudent marketing strategy, we almost reached breakeven on a non-GAAP basis at the group level for the first time after we deconsolidated YY Live.”

JOYY Inc. (NASDAQ: YY) also issued its sales outlook for the third quarter. It is anticipating revenue in the range of $608 million to $635 million for the current quarter. The guidance represents a year-over-year growth between 13.7-18.7 percent.

7. Lumentum Holdings Inc. (NASDAQ: LITE)

Number of Hedge Fund Holders: 29

Lumentum Holdings Inc. (NASDAQ: LITE) stock rose to a 4-month high after beating expectations for the fourth quarter. The leading manufacturer of optical products reported earnings of 28 cents per share for the three months ended July 3, compared to a loss of 6 cents per share in the same period last year.

On an adjusted basis, Lumentum Holdings Inc. (NASDAQ: LITE) earned $1.15 per share, ahead of the consensus forecast of $1.06 per share. Total revenue for the quarter rose 6.5 percent to $392.1 million, exceeding analysts’ average estimate of $382.2 million.

Lumentum Holdings Inc. (NASDAQ: LITE) also issued its financial outlook for the first quarter. It expects adjusted earnings in the range of $1.47 per share to $1.61 per share, better than the consensus forecast of $1.45. Moreover, revenue is expected to come between $430 million and $445 million, in line with analysts’ average estimate of $438 million.

Agilent Technologies, Inc. (NYSE: A), Synopsys, Inc. (NASDAQ: SNPS), Analog Devices, Inc. (NASDAQ: ADI), The TJX Companies, Inc. (NYSE: TJX), and Target Corporation (NYSE: TGT) also came into the limelight after releasing their financial results.

6. Cree, Inc. (NASDAQ: CREE)

Number of Hedge Fund Holders: 31

Cree, Inc. (NASDAQ: CREE) recently announced better-than-expected financial results for the fourth quarter ended June 27. The manufacturer of semiconductors reported a loss of $1.28 per share, compared to a loss of 36 cents per share in the same period last year.

On an adjusted basis, Cree, Inc. (NASDAQ: CREE) lost 23 cents per share, narrower than the consensus forecast of 24 cents per share. Revenue for the quarter climbed 35 percent on a year-over-year basis to $145.8 million, just ahead of $145.2 million forecasted by analysts.

Discussing the results, CEO Gregg Lowe said, “We delivered strong revenue during the quarter, as customers are ramping up production earlier and steeper than originally anticipated. We continued to grow and convert opportunities in our device pipeline, further establishing our industry leadership position in silicon carbide.”

Cree, Inc. (NASDAQ: CREE) also released its financial guidance for the first quarter. It expects adjusted loss in the range of 21 cents per share to 25 cents per share and revenue between $144 million and $154 million for the current quarter. The guidance aligns with the consensus estimate for a loss of 23 cents and revenue of $150.1 million.

Agilent Technologies, Inc. (NYSE: A), Synopsys, Inc. (NASDAQ: SNPS), Analog Devices, Inc. (NASDAQ: ADI), The TJX Companies, Inc. (NYSE: TJX), and Target Corporation (NYSE: TGT) also came into the limelight after releasing their financial results.

5. Agilent Technologies, Inc. (NYSE: A)

Number of Hedge Fund Holders: 39

Agilent Technologies, Inc. (NYSE: A) was founded in 1999 by the spin-off of Hewlett-Packard’s test, measurement, and related segments. The company went public in November 1999 by raising $2.1 billion, marking a record IPO in the history of Silicon Valley at that time. Today, it is a leading provider of instruments, applications, and services to various industries.

Agilent stock recently caught investors’ attention after hitting an all-time high of $171.21. The surge was mainly driven by its solid Q3 results.  The company reported earnings of 86 cents per share for the quarter, up from 64 cents per share in the comparable period of 2020.

Agilent earned $1.10 per share on an adjusted basis, ahead of the consensus forecast of 99 cents per share. Revenue for the quarter jumped 26 percent on a year-over-year basis to $1.59 billion, exceeding expectations of $1.54 billion.

If we look at the performance of key segments, revenue from the life sciences and applied markets group rose 22 percent on a year-over-year basis to $680 million. In comparison, revenue from the CrossLab group jumped 21 percent to $560 million, while revenue from the diagnostics and genomics group climbed 44 percent to $346 million.

Agilent also updated its financial outlook for the full year. It expects adjusted earnings in the range of $4.28-$4.31 per share and revenue between $6.29 billion and $6.32 billion for FY 2021.

4. Synopsys, Inc. (NASDAQ: SNPS)

Number of Hedge Fund Holders: 41

Synopsys, Inc. (NASDAQ: SNPS) shares hit a new 52-week high of $325.08 after announcing better-than-expected results for the fiscal third quarter. The company reported earnings of $1.27 per share, down from $1.62 per share in the year-ago quarter. However, the adjusted earnings came in at $1.81 per share, up from $1.74 per share in the same period last year.

Total revenue for the quarter climbed 96 percent on a year-over-year basis to $1.06 billion. The results surpassed analysts’ average estimate of $1.78 per share for earnings and $1.04 billion for revenue.

Synopsys also released its financial guidance for the fourth quarter and a full year. The company expects adjusted earnings in the range of $1.75-$1.80 per share on revenue of $1.14 billion $1.17 billion for the current quarter. In addition, it expects adjusted earnings in the range of $6.78-$6.83 per share and revenue between $4.19 billion $4.22 billion for the full year.

3. Analog Devices, Inc. (NASDAQ: ADI)

Number of Hedge Fund Holders: 62

Analog Devices, Inc.’s (NASDAQ: ADI) history dates back to 1965 when two MIT graduates Ray Stata and Matthew Lorber founded the company in their shared apartment. Today, it is a leading manufacturer of precision performance electronic equipment such as high-performance analog and integrated circuits.

The company recently announced third-quarter earnings and revenue above expectations, mainly driven by improved gross margins. Analog Devices reported earnings of $1.35 per share for the three months ended July 31, well above 97 cents per share in the same period last year.

On an adjusted basis, earnings increased to $1.72 per share, ahead of the consensus forecast of $1.62 per share. Total revenue for the quarter jumped nearly 21 percent to $1.76 billion, surpassing analysts’ average estimate of $1.71 billion.

Praising the results, CEO Vincent Roche said, “ADI delivered record revenue and earnings for the second consecutive quarter with continued gross and operating margin expansion. All markets increased sequentially with our Industrial and Automotive segments once again achieving records. Robust bookings across all end markets, combined with lean inventories and ongoing capacity additions will enable us to close this year on a high note and continue to grow into fiscal 2022.”

Looking forward, Analog Devices expects adjusted earnings of $1.72 per share, +/-11 cents, for the fourth quarter. Moreover, it is anticipating Q4 revenue of $1.78 billion, +/-$70 million.

2. The TJX Companies, Inc. (NYSE: TJX)

Number of Hedge Fund Holders: 56

The TJX Companies, Inc. (NYSE: TJX), founded in 1987, is a leading off-price retailer operating more than 4,500 stores across nine countries. The company purchases liquidated merchandise from struggling vendors at low prices and pass the savings on to its consumers. In addition, it regularly refreshes its inventories to stay competitive. TJX also has a dedicated team of buyers who help the company in finding the right fashions.

TJX shares have been trading higher since reporting its financial results for the second quarter. The off-price retailer posted earnings of 64 cents per share for the quarter, compared to a loss of 18 cents per share in the same period last year.

Total sales for the quarter jumped 81 percent on a year-over-year basis to $12.08 billion. The results exceeded analysts’ average estimate of 59 cents per share for earnings and $11 billion for revenue. TJX said that store closures in the quarter hurt its total revenue by $300 million to $350 million.

1. Target Corporation (NYSE: TGT)

Number of Hedge Fund Holders: 66

Target Corporation (NYSE: TGT) is one of the biggest discount retailers in the U.S, operating more than 1,900 stores. The company recently announced better-than-expected financial results for the second quarter.

Target earned $3.64 per share on an adjusted basis, ahead of the consensus forecast of $3.51 per share. Revenue for the quarter rose 9.5 percent on a year-over-year basis to $25.16 billion, beating analysts average estimate of $24.99 billion.

Same-store sales in the quarter improved to 8.9 percent, better than the growth of 8.8 percent projected by analysts. In addition, digital comparable sales in the quarter increased to 10 percent. Looking forward, Target expects its comparable sales in the second half to grow in the high single-digit percentage.

Speaking on the results, CEO Brian Cornell said, “In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target’s leadership position in retail. We’ve spent years building and investing in the durable model we have today, which is supported by a differentiated strategy and the best team in retail.”

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Disclosure: None. 10 Must-Watch Earnings Reports is originally published on Insider Monkey.