10 Stocks Drawing Attention After Topping Quarterly Expectations

In this article, we will take a look at the 10 stocks drawing attention after topping quarterly expectations.

We are more than halfway through the fourth-quarter earnings season. Recently, popular stocks from various sectors, including CVS Health Corporation (NYSE:CVS), Chipotle Mexican Grill, Inc. (NYSE:CMG), Paycom Software, Inc. (NYSE:PAYC) and Enphase Energy, Inc. (NASDAQ:ENPH), announced upbeat financial results for Q4.

Shares of Chipotle Mexican, Paycom Software and Enphase Energy turned green after beating expectations. However, CVS Health shares dropped more than five percent after issuing a weak outlook for vaccines administration and in-store testing for the current fiscal year.

Several other stocks, including ride-hailing services provider Lyft, Inc. (NASDAQ:LYFT) and mass media company Fox Corporation (NASDAQ:FOXA), also topped financial expectations for their respective quarters.

Now, let’s discuss the key financial highlights of these companies.

Stocks Drawing Attention After Topping Quarterly Expectations

10. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 21

Shares of FMC Corporation (NYSE:FMC) rose to a nearly eight-month high on Wednesday, February 9, 2022, after announcing better-than-expected financial results for the fourth quarter. The agricultural sciences company reported adjusted earnings of $2.16 per share, up 52 percent on a year-over-year basis.

Revenue for the quarter also advanced 23 percent versus last year to $1.41 billion. Analysts were expecting FMC Corporation (NYSE:FMC) to post earnings of $2.01 per share on revenue of $1.38 billion.

The company also issued its financial outlook for 2022. FMC Corporation (NYSE:FMC) expects adjusted earnings in the range of $6.80 – $8.10 per share and revenue between $5.25 – $5.55 billion for the full year. The midpoint of earnings and revenue guidance represents a surge of 8 percent and 7 percent, respectively.

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

“Our financial performance reflects the strength of our synthetic and biological portfolios, a healthy demand environment as well as accelerating price increases. Revenue growth was particularly robust in North America and Latin America.”

9. Fox Corporation (NASDAQ:FOXA)

Number of Hedge Fund Holders: 32

Shares of Fox Corporation (NASDAQ:FOXA) closed higher on Wednesday, February 9, 2022, after announcing its fiscal second-quarter profit and sales above expectations. The New York-based mass media company earned 13 cents per share on an adjusted basis, compared to 16 cents per share in the year-ago period.

In addition, Fox Corporation (NASDAQ:FOXA) posted revenue of $4.44 billion, up 9 percent on a year-over-year basis. The results topped the consensus forecast of 3 cents per share for earnings and $4.26 billion for revenue.

Fox Corporation (NASDAQ:FOXA) also released its segment-wise sales performance. Its affiliate revenue jumped 11 percent to $1.69 billion, ad revenue rose 6 percent to $2.41 billion and other revenue climbed 20 percent to $345 million in the quarter.

Like Fox Corporation (NASDAQ:FOXA), CVS Health Corporation (NYSE:CVS), Enphase Energy, Inc. (NASDAQ:ENPH) and Chipotle Mexican Grill, Inc. (NYSE:CMG), also came into the limelight after beating expectations.

8. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 33

Shares of Lyft, Inc. (NASDAQ:LYFT) recently rose to a nearly one-month high after beating expectations for the fourth quarter. The ridesharing services provider reported adjusted earnings of 9 cents per share, just ahead of the consensus forecast of 8 cents per share.

Revenue for the quarter climbed 70 percent versus last year to $969.9 million, while analysts were expecting Lyft, Inc. (NASDAQ:LYFT) to generate revenue of $940.1 million. In addition, revenue per active rider rose over 14 percent to $52, marking a record in the company’s decade-long history.

Lyft, Inc. (NASDAQ:LYFT) also updated its sales outlook for the first quarter. It expects to produce revenue in the range of $800 – $850 million for the current quarter, significantly lower than the consensus forecast of $984 million.

7. Performance Food Group Company (NYSE:PFGC)

Number of Hedge Fund Holders: 36

Shares of Performance Food Group Company (NYSE:PFGC) jumped over 13 percent on Wednesday, February 9, 2022, after the Virginia-based food distributor and supplier released solid profit and sales for its fiscal second quarter.

Performance Food Group Company (NYSE:PFGC) reported adjusted earnings of 57 cents per share, up nearly 63 percent from the same quarter of the prior year. Revenue also climbed 87.6 percent on a year-over-year basis to $12.839 billion. The results topped the consensus forecast of 49 cents per share for earnings and $12.830 billion for revenue.

If we look at the performance of its key business units, foodservice revenue jumped 27.2 percent to $6.2 billion, Vistar revenue climbed 54.3 percent to $907.3 million and convenience revenue skyrocketed 318.6 percent to $5.7 billion in the quarter.

Looking forward, Performance Food Group Company (NYSE:PFGC) expects revenue in the range of $12.9 – $13.1 billion for the current quarter and between $50 – $51 billion for its fiscal year 2022.

Like Performance Food Group Company (NYSE:PFGC), investors are also closely watching CVS Health Corporation (NYSE:CVS), Enphase Energy, Inc. (NASDAQ:ENPH) and Chipotle Mexican Grill, Inc. (NYSE:CMG), following their financial reports.

6. CDW Corporation (NASDAQ:CDW)

Number of Hedge Fund Holders: 37

Shares of CDW Corporation (NASDAQ:CDW) slipped over two percent on Wednesday, February 9, 2022, despite announcing its financial results for the fourth quarter above expectations.

CDW Corporation (NASDAQ:CDW) posted adjusted earnings of $2.08 per share on revenue of $5.54 billion. This compares to analysts’ average estimate of $1.92 per share for earnings and $5.18 billion for revenue.

In addition, CDW Corporation (NASDAQ:CDW) also released its segment-wise sales results. Revenue from the total corporate segment jumped 33.1 percent to $2.32 billion, while revenue from the total small business segment soared 30.9 percent to $487 million. On the downside, revenue from the total public segment fell 13.1 percent to $2.03 billion in the quarter.

Speaking on the results, CFO Albert Miralles said in a statement:

“Strong operating results and successful execution on our capital allocation priorities, delivered a 21 percent increase in Non-GAAP net income per diluted share for 2021. After financing $2.5 billion for the acquisition of Sirius in December of 2021, we will optimize the use of cash flow after paying dividends to focus on reducing debt to our net leverage target range of 2.5 to 3.0 times, which we expect to achieve by the end of 2022.”

5. FLEETCOR Technologies, Inc. (NYSE:FLT)

Number of Hedge Fund Holders: 31

Shares of FLEETCOR Technologies, Inc. (NYSE:FLT) rose to a nearly four-month high on Wednesday, February 9, 2022, after announcing better-than-expected financial results for the fourth quarter.

FLEETCOR Technologies, Inc. (NYSE:FLT) reported adjusted earnings of $3.72 per share, up from $3.01 per share in the year-ago period. Revenue for the quarter jumped 30 percent versus last year to $802.3 million. The results topped analysts’ average estimate of $3.60 per share for earnings and $766.8 million for revenue.

The business payments company also released its financial outlook for 2022. FLEETCOR Technologies, Inc. (NYSE:FLT) expects adjusted earnings in the range of $15 – $15.5 per share and revenue between $3.190 – $3.250 billion for the current fiscal year.

4. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 31

Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) jumped over 10 percent on Wednesday, February 9, 2022, following its upbeat financial performance for the fourth quarter. The latest results were mainly helped by price hikes and strong online sales during the quarter.

Chipotle Mexican Grill, Inc. (NYSE:CMG) earned $5.58 per share on an adjusted basis, well above $3.48 per share for the same period of 2020. Analysts were looking for earnings of $5.25 per share.

In addition, Chipotle Mexican Grill, Inc. (NYSE:CMG) posted revenue of $2 billion for the quarter, up 22 percent on a year-over-year basis and in line with the expectations. Comparable restaurant sales also rose 15.2 percent. Moreover, digital sales increased 3.8 percent and represented nearly 42 percent of the total sales.

Looking forward, Chipotle Mexican Grill, Inc. (NYSE:CMG) projected 2022 comparable restaurant sales growth between mid to high single digits range. Moreover, the company plans to open 235 – 250 new restaurants during the current fiscal year.

Speaking on the results, CEO Brian Niccol said:

“2021 was an outstanding year for Chipotle, highlighting the strength and resiliency of our brand. Together, we accomplished many incredible things as our passionate employees remained dedicated to delivering excellent guest experiences, aligned with our purpose and values.”

3. Paycom Software, Inc. (NYSE:PAYC)

Number of Hedge Fund Holders: 40

Shares of Paycom Software, Inc. (NYSE:PAYC) rose to a nearly one-month high on Wednesday, February 9, 2022, after delivering solid profit and sales for the fourth quarter. The provider of online payroll services and HR software solutions posted adjusted earnings of $1.11 per share, beating expectations of $1.08 per share.

Revenue came in at $285.0 million, above analysts’ average estimate of $275.66 million. In the same quarter of 2020, Paycom Software, Inc. (NYSE:PAYC) posted adjusted earnings of 84 cents per share on revenue of $220.9 million for the fourth quarter of 2020.

Moving forward, Paycom Software, Inc. (NYSE:PAYC) expects revenue in the range of $342 – $344 million for the current quarter and between $1.314 – $1.316 billion for the full year.

CEO Chad Richison expressed his satisfaction with the latest performance. Richison said in a statement:

“We delivered very strong results in 2021, reflecting outstanding execution and robust demand for Paycom’s differentiated solution. Our employee usage strategy, where employees are now able to do their own payroll with Beti™, helped deliver record annual revenue retention. Combining this with the momentum we are seeing and the sales and marketing investments we’ve made, we believe we are set up to deliver strong, high-margin revenue growth for years to come.”

2. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 52

Shares of Enphase Energy, Inc. (NASDAQ:ENPH) climbed over 12 percent on Wednesday, February 9, 2022, after the energy management technology company surpassed profit and sales expectations for the fourth quarter.

Enphase Energy, Inc. (NASDAQ:ENPH) reported adjusted earnings of 73 cents per share, compared to 51 cents per share in the fourth quarter of 2020. Revenue for the quarter increased to $412.7 million versus $264.8 million in the same period one year ago. The results easily surpassed analysts’ average estimate of 58 cents per share for earnings and $397 million for revenue.

The company also released its sales outlook for the first quarter. Enphase Energy, Inc. (NASDAQ:ENPH) expects to generate revenue in the range of $420 – $440 million for the current quarter, above the consensus forecast of $409 million.

1. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 61

CVS Health Corporation (NYSE:CVS) recently delivered impressive profit and sales for the fourth quarter, helped by elevated demand for coronavirus vaccines and home-testing kits. The Woonsocket-based healthcare giant earned $1.98 per share on an adjusted basis, up from $1.30 per share in the fourth quarter of 2020.

Revenue for the quarter jumped 10.1 percent on a year-over-year basis to $76.6 billion. Analysts were expecting CVS Health Corporation (NYSE:CVS) to post earnings of $1.93 per share on revenue of $75.67 billion.

CVS Health Corporation (NYSE:CVS) also released its segment-wise sales performance. Revenue from its health care benefits segment rose 8.4 percent, while revenue from the pharmacy services segment increased 8.2 percent. In comparison, retail revenue jumped 12.7 percent in the quarter.

Among other updates, CVS Health Corporation (NYSE:CVS) reported that it administered over 20 million coronavirus vaccines during the quarter, significantly higher than around 11 million in the third quarter and 17 million in the second quarter.

Looking forward, CVS Health Corporation (NYSE:CVS) expects a drop of 70 – 80 percent in the number of vaccines it will administer in the current fiscal year. The in-store diagnostic testing for 2022 is also expected to decline in the range of 40 – 50 percent versus last year. The weak outlook sent CVS stock down more than five percent on Wednesday, February 9, 2022.

Speaking on the results, CEO Karen Lynch said in a statement:

“We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health. That’s clearly reflected in our performance, but more importantly in our potential.”

You can also take a peek at 10 Best Dividend Stocks According to Thomas Steyer’s Farallon Capital and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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Disclosure: None. 10 Stocks Drawing Attention After Topping Quarterly Expectations is originally published on Insider Monkey