10 Stocks in Focus After Releasing Their Earnings Reports

In this article, we will take a look at the 10 stocks in focus after releasing their earnings reports.

The third-quarter earnings season is underway. Stocks from the communication services, industrials, and technology sectors recently released their financial results. Snap Inc. (NYSE:SNAP), AT&T Inc. (NYSE:T), Union Pacific Corporation (NYSE:UNP), and Intel Corporation (NASDAQ:INTC), were among the notable stocks that posted their earnings reports earlier this week.

If we look at their price movements, shares of both Intel Corporation (NASDAQ:INTC) and Snap Inc. (NYSE:SNAP) fell sharply following the results. On the other hand, Union Pacific Corporation (NYSE:UNP) shares hit a new 52-week high of $237.84 after beating expectations.

Source:unsplash

In addition, several other companies, including Southwest Airlines Co. (NYSE:LUV) and Honeywell International Inc. (NASDAQ:HON), also released their quarterly results. To review the detailed performance of these companies, let’s start our list of 10 stocks in focus after releasing their earnings reports.

Stocks in Focus After Releasing Their Earnings Reports

10. Valero Energy Corporation (NYSE:VLO)

Number of Hedge Fund Holders: 38

Shares of Valero Energy Corporation (NYSE:VLO) closed higher on Thursday, 21 October 2021, after posting better-than-expected financial results for the third quarter. The results were mainly driven by a recovery in fuel demand and higher refining margins.

The provider of transportation fuels and petrochemical products reported adjusted earnings of $1.22 per share, compared to an adjusted loss of $1.16 per share in the same period last year. Revenue came in at 29.52 billion, nearly double from $15.81 billion in the comparable period of 2020. Analysts were expecting Valero Energy Corporation (NYSE:VLO) to report earnings of 94 cents per share on revenue of $24.5 billion.

Speaking on the results, CEO Joe Gorder said in a statement:

“We saw significant improvement in refining margins in the third quarter as economic activity and mobility continued to recover in key markets. he continued improvement in earnings of our refining business, coupled with the ongoing expansion of our renewables businesses, should strengthen our competitive advantage and drive long-term shareholder returns.”

9. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 40

Dow Inc. (NYSE:DOW) manufactures plastics, chemicals, and coatings, among other products. It recently announced its profit and sales for the third quarter above expectations. The company earned $2.75 per share on an adjusted basis, significantly higher than 50 cents per share in the year-ago quarter.

In addition, Dow Inc. (NYSE:DOW) posted revenue of $14.8 billion, up 53 percent from the comparable period of 2020. The results exceeded the consensus forecast of $2.55 per share for earnings and $14.25 billion for revenue.

If we break down the revenue by segments, the packaging & specialty plastics segment accounted for about 50 percent of the total revenue. The segment’s revenue climbed 69 percent on a year-over-year basis to $7.7 billion in the quarter.

In comparison, revenue from the industrial intermediates & infrastructure segment climbed 47 percent to $4.5 billion, while revenue from the performance materials & coatings segment jumped 26 percent to $2.5 billion.

8. Southwest Airlines Co. (NYSE:LUV)

Number of Hedge Fund Holders: 49

Shares of Southwest Airlines Co. (NYSE:LUV) slipped nearly two percent on Thursday, 22 October 2021, despite beating expectations for the third quarter. The Dallas-based airline reported an adjusted loss of 23 cents per share, narrower than the loss of 27 cents per share estimated by analysts.

Revenue came in at $4.68 billion, beating the consensus forecast of $4.58 billion. Southwest Airlines Co. (NYSE:LUV) had reported an adjusted loss of $1.99 per share on revenue of $1.79 billion in the comparable period of 2020.

Looking forward, Southwest Airlines Co. (NYSE:LUV) expects its fourth-quarter revenue to drop between 15 – 20 percent versus the comparable period of 2019. The company blamed the negative effects of Delta variant and flights cancellations for the weak outlook.

Discussing the results, CEO Gary Kelly said in a statement:

“Third quarter 2021 was a challenge for us, operationally. Despite the deceleration of traffic in August and September due to surging COVID-19 cases, the third quarter 2021 demand and revenue performance was quite strong and a dramatic improvement from a year ago.”

7. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 57

Shares of Honeywell International Inc. (NASDAQ:HON) moved slightly down in the pre-market trading session on Friday, 22 October 2021, after announcing mixed financial results for the third quarter.

Honeywell International Inc. (NASDAQ:HON) reported adjusted earnings of $2.02, up 29 percent from $1.56 in the same period last year. Analysts were looking for earnings of $1.99 per share.

In addition, Honeywell International Inc. (NASDAQ:HON) posted revenue of $8.47 billion, translating to a year-over-year surge of 8.7 percent. However, it missed the consensus forecast of $8.66 billion.

Honeywell International Inc. (NASDAQ:HON) also updated its financial outlook for the full year. It expects adjusted earnings in the range of $8.00 – $8.10 per share and revenue between $34.2 billion – $34.6 billion. Earlier, the company had projected adjusted earnings in the range of $7.95 – $8.10 per share on revenue of $34.6 billion – $35.2 billion for the same period.

Commenting on the quarter, CEO Darius Adamczyk said:

“The third quarter was another strong one for Honeywell, with sales growth in all four segments, significant margin expansion, and exceptional execution even as we faced tough challenges in the supply chain environment.”

6. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 57

HCA Healthcare, Inc. (NYSE:HCA) announced impressive profit and sales for the third quarter on Friday, 22 October 2021. The health-care facilities operator reported earnings of $7 per share, crushing the consensus forecast of $4.06 per share.

Revenue came in at $15.276 billion, ahead of analysts’ average estimate of $14.476 billion. HCA Healthcare, Inc. (NYSE:HCA) had posted earnings of $1.95 per share on revenue of $13.311 billion for the comparable period of 2020.

Speaking on the results, CEO Sam Hazen said:

“During the third quarter we experienced the most intense surge yet of the pandemic, and our colleagues and physicians delivered record levels of patient care to meet the demand caused by the Delta variant.”

Looking forward, HCA Healthcare, Inc. (NYSE:HCA) is expecting earnings in the range of $17.20 – $17.80 per share for the full year, better than the consensus forecast of $17.05. Revenue for the full year is expected to come between $58.7 billion – $59.3 billion, in line with analysts’ average estimate of $57.872 billion.

5. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 64

Shares of Snap Inc. (NYSE:SNAP) took a deep dive in the pre-market trading session on Friday, 22 October 2021, losing nearly 20 percent of their value after posting lower-than-expected revenue for the third quarter. The social media company’s revenue jumped 57 percent on a year-over-year basis to $1.07 billion, but missed the consensus forecast of $1.1 billion.

On the bright side, Snap Inc. (NYSE:SNAP) reported a narrower-than-expected loss for the quarter. The company lost 5 cents per share versus a loss of 10 cents per share estimated by analysts. It was also narrower than the loss of 14 cents per share in the year-ago quarter.

Commenting on the quarter, CEO Evan Spiegel said:

“We’re now operating at the scale necessary to navigate significant headwinds, including changes to the iOS platform that impact the way advertising is targeted, measured, and optimized, as well as global supply chain issues and labor shortages impacting our partners.”

Snap Inc. (NYSE:SNAP) also issued its revenue outlook for the fourth quarter. It expects revenue in the range of $1.165 billion to $1.205 billion, well below the consensus forecast of $1.36 billion.

4. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 68

AT&T Inc. (NYSE:T) recently announced mixed financial results for the third quarter. The telecommunications giant reported adjusted earnings of 87 cents per share, up from 76 cents per share in the same period last year.

Revenue came in at $39.9 billion, compared to $42.3 billion in the year-ago quarter. Analysts were expecting AT&T Inc. (NYSE:T) to report earnings of 78 cents per share on revenue of $40.6 billion.

If we compare the performance of key segments, mobility revenue rose seven percent to $19.1 billion, and WarnerMedia revenue jumped 14.2 percent to $8.4 billion. In comparison, business wireline revenue fell 5.2 percent to $5.9 billion, while consumer wireline revenue increased 3.4 percent to $3.1 billion.

In addition, AT&T Inc. (NYSE:T) announced that it added 928,000 new phone subscribers in the quarter, beating expectations of 560,000. Moreover, total subscribers for both HBO and HBO Max increased by 1.9 million to 69.4 million versus the prior quarter.

3. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 69

Shares of Union Pacific Corporation (NYSE:UNP) hit an all-time high of $237.84 in the morning trading session on Friday, 22 October 2021, after posting strong profit and sales for the third quarter.

The railroad company reported earnings of $2.57 per share, beating the consensus forecast of $2.51 per share. Union Pacific Corporation (NYSE:UNP) had posted earnings of $2.01 per share for the same quarter last year.

Revenue for the quarter rose 13 percent on a year-over-year basis to $5.57 billion, ahead of the consensus forecast of $5.41 billion. Union Pacific Corporation (NYSE:UNP) also announced that it repurchased 8.6 million shares of its common stock during the quarter.

Speaking on the results, CEO Lance Fritz said in a statement:

“The Union Pacific team successfully navigated global supply chain disruptions, a major bridge outage, and additional weather events to produce strong quarterly revenue growth and financial results. In the quarter, the team delivered solid core pricing gains, leveraged business development to produce a positive business mix, and generated productivity to offset flat volume.”

2. Danaher Corporation (NYSE:DHR)

Number of Hedge Fund Holders: 78

Danaher Corporation (NYSE:DHR) recently announced better-than-expected financial results for the third quarter. The medical and diagnostics company reported adjusted earnings of $2.39 per share, well above $1.72 per share in the comparable period of 2020.

Revenue came in at $7.23 billion, compared to $5.88 billion in the same period last year. Analysts were expecting Danaher Corporation (NYSE:DHR) to report earnings of $2.15 per share on revenue of $7 billion.

Discussing the results, CEO Rainer Blair said:

“Our team delivered another outstanding result in the third quarter, with over 20% core revenue growth and terrific earnings and cash flow performance.  We continued to invest for growth across our businesses, expanding production capacity and accelerating innovation initiatives.  Additionally, the recently closed acquisition of Aldevron enhances our portfolio and expands our capabilities into the important field of genomic medicine.”

1. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 78

Shares of Intel Corporation (NASDAQ:INTC) fell sharply in the pre-market trading on Friday, 22 October 2021, despite beating expectations for the third quarter. The chipmaker giant reported adjusted earnings of $1.71 per share, ahead of the consensus forecast of $1.11 per share.

Intel Corporation (NASDAQ:INTC) had posted earnings of $1.08 per share for the comparable period of 2020. In addition, revenue for the quarter rose five percent on a year-over-year basis to $19.2 billion, beating expectations of $18.24 billion.

Revenue at the company’s biggest business, the client computing unit, slipped two percent on a year-over-year basis to $9.7 billion. Intel Corporation (NASDAQ:INTC) blamed component shortages for the decline.

Speaking on the results, CEO Pat Gelsinger said:

“Q3 shone an even greater spotlight on the global demand for semiconductors, where Intel has the unique breadth and scale to lead. Our focus on execution continued as we started delivering on our IDM 2.0 commitments. We broke ground on new fabs, shared our accelerated path to regain process performance leadership, and unveiled our most dramatic architectural innovations in a decade. We also announced major customer wins across every part of our business.”

Intel Corporation (NASDAQ:INTC) also released its financial outlook for the fourth quarter and full year. For the fourth quarter, it expects adjusted earnings of 90 cents per share on revenue of about $19.2 billion. This compares to the consensus forecast of $1.01 per share for earnings and $18.25 billion for revenue.

For the full year, the company expects adjusted earnings of $5.28 per share on revenue of about $77.7 billion, compared to analysts’ average estimate of $4.79 per share for earnings and $73.59 billion for revenue.

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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Disclosure: None. 10 Stocks in Focus After Releasing Their Earnings Reports is originally published on Insider Monkey.