5 Stocks in the Spotlight Following First-Quarter Results

In this article, we discuss the 5 stocks in the spotlight following first-quarter results. If you want to read our detailed analysis of these companies, go directly to the 11 Stocks in the Spotlight Following First-Quarter Results.

5. Cadence Design Systems, Inc. (NASDAQ:CDNS)

Number of Hedge Fund Holders: 34

Shares of Cadence Design Systems, Inc. (NASDAQ:CDNS) rose over five percent in the pre-market trading session on Tuesday, April 26, 2022, after delivering solid profit and sales for the first quarter.

Cadence Design Systems, Inc. (NASDAQ:CDNS) reported adjusted earnings of $1.17 per share, up from 83 cents per share in the year-ago period. Revenue for the quarter jumped 22.5 percent versus last year to $902 million. The results crushed the consensus of $1.02 per share for earnings and $857.32 million for revenue.

Moving forward, Cadence Design Systems, Inc. (NASDAQ:CDNS) expects adjusted earnings in the range 95 – 99 cents per share and revenue between $825 – $845 million for the second quarter. The outlook is above analysts’ average estimate of 92 cents per share for earnings and $823.74 million for revenue.

Discussing the results, CFO John Wall said:

“Q1 results reflect the success we have with our customers and partners, as well as the solid execution from the Cadence team. We benefited from strong demand for our technologies. We exceeded all key operating metrics for the quarter and are raising our full year guidance.”

4. Universal Health Services, Inc. (NYSE:UHS)

Number of Hedge Fund Holders: 35

Shares of Universal Health Services, Inc. (NYSE:UHS) plunged to a nearly five-month low in the pre-market trading session on Tuesday, April 26, 2022, following its disappointing profit for the first quarter.

Universal Health Services, Inc. (NYSE:UHS) reported adjusted earnings of $2.15 per share, missing the expectations of $2.46 per share with a big margin. On the bright side, revenue for the quarter rose 9.3 percent versus last year to $3.29 billion, beating analysts’ average estimate of $3.21 billion.

Like its peers, Universal Health Services, Inc. (NYSE:UHS) faced operational hurdles in the quarter due to shortage of medical professionals. The company had to recruit a temporary workforce at relatively higher wages for the smooth running of daily operations. However, higher costs weighed down on its profitability.

Universal Health Services, Inc. (NYSE:UHS) continues to expect adjusted earnings in the range of $11.90 – $12.90 per share and revenue between $13.424 – $13.694 billion for the current fiscal year.

3. Axalta Coating Systems Ltd. (NYSE:AXTA)

Number of Hedge Fund Holders: 37

Shares of Axalta Coating Systems Ltd. (NYSE:AXTA) rose over four percent in the pre-market trading session on Tuesday, April 26, 2022, after announcing better-than-expected financial results for the first quarter.

Axalta Coating Systems Ltd. (NYSE:AXTA) reported adjusted earnings of 31 cents per share, down from 50 cents per share in the comparable period of 2021. Revenue came in at $1.17 billion, up 10.4 percent on a year-over-year basis. The results exceeded analysts’ average estimate of 26 cents per share for earnings and $1.11 billion for revenue.

Axalta Coating Systems Ltd. (NYSE:AXTA) also released its segment-wise sales performance. Revenue from its performance coatings business jumped 15.1 percent to $814.4 million, while mobility coatings revenue inched up 1 percent to $359.7 million in the quarter.

Commenting on the quarter, CEO Robert Bryant said:

“Despite the unprecedented breadth and rate of cost inflation, we are increasing prices aggressively and working hard to ensure we are fully sourced to support our customers’ needs. Raw material availability remains challenged with the potential for areas of trade flow concerns if China COVID-19 lockdowns persist deeper into Q2.”

2. Otis Worldwide Corporation (NYSE:OTIS)

Number of Hedge Fund Holders: 38

Shares of Otis Worldwide Corporation (NYSE:OTIS) closed higher on Monday, April 25, 2022, after beating profit expectations for the first quarter. The New York-based elevator manufacturer earned 77 cents per share on an adjusted basis, ahead of the consensus of 74 cents per share.

On the downside, revenue came in at $3.414 billion, nearly unchanged from last year and below analysts’ average estimate of $3.43 billion. If we look at the performance of flagship segments of Otis Worldwide Corporation (NYSE:OTIS), services revenue rose 2.2 percent to $1.99 billion. In comparison, new equipment revenue fell 2.5 percent to $1.42 billion in the quarter.

Otis Worldwide Corporation (NYSE:OTIS) also updated its earnings outlook for fiscal 2022. It now expects adjusted earnings in the range of $3.22 – $3.27 per share, down from its previous guidance between $3.20 – $3.30 per share.

Speaking on the results, CEO Judy Marks said:

“Otis delivered a strong first quarter with broad based growth in New Equipment orders and maintenance portfolio units, nearly 6% Service organic sales growth, 30 basis points of Otis adjusted margin expansion and high-single digit adjusted EPS growth.”

1. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 70

Shares of The Coca-Cola Company (NYSE:KO) recently hit an all-time high of $67.20 after delivering impressive profit and sales for the first quarter. The Atlanta-based beverage giant reported adjusted earnings of 64 cents per share, representing a decent surge of 16 percent over the first quarter of 2021.

Revenue for the quarter also climbed 16 percent on a year-over-year basis to $10.49 billion. Analysts were expecting The Coca-Cola Company (NYSE:KO) to report earnings of 58 cents per share on revenue of $9.83 billion.

Among other updates, The Coca-Cola Company (NYSE:KO) announced that its global unit case volume for the quarter rose 8 percent, while the operating margin increased 230 basis points to 32.5 percent.

Looking forward, The Coca-Cola Company (NYSE:KO) reaffirmed its financial outlook for 2022 despite the suspension of Russian operations. It continues to anticipate adjusted earnings per share growth in the range of 5 – 6 percent and sales growth of 7 – 8 percent.

Praising the latest results, CEO James Quincey said:

“We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment. We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders.”

You can also take a peek at 10 Best Micro-Cap Stocks to Buy According to Hedge Funds and 10 Undervalued Dividend Kings To Buy In 2022.

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