5 Stocks Making Headlines After Earnings Reports

In this article, we discuss the 5 stocks making headlines after earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Making Headlines After Earnings Reports.   

5. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 61

PepsiCo, Inc. (NASDAQ:PEP) recently announced better-than-expected financial results for the fourth quarter. However, the New York-based beverage giant warned that rising costs might weigh on its profit in the current fiscal year.

Companies in the packaged food industry, including PepsiCo, Inc. (NASDAQ:PEP), have been grappling with increasing costs amid higher shipping and labor charges as well as pandemic-driven supply chain disruptions.

In response, many companies have increased their product prices to maintain their profit margins. However, some industry experts believe that price hikes alone may not be enough to offset the negative effects of the rising costs.

Coming back to the results, PepsiCo, Inc. (NASDAQ:PEP) reported adjusted earnings of $1.53 per share, just ahead of the consensus forecast of $1.52 per share. Revenue for the quarter jumped 12 percent on a year-over-year basis to $25.25 billion, beating expectations of $24.24 billion. Looking forward, the company expects organic revenue growth of 6 percent for 2022.

PepsiCo, Inc. (NASDAQ:PEP) also released its segment-wise sales performance. Revenue from the Frito-Lay North America segment rose 13 percent, while Quaker Foods North America’s revenue increased 9 percent. In comparison, PepsiCo Beverages North America’s revenue jumped 13 percent in the quarter.

4. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 62

Shares of Datadog, Inc. (NASDAQ:DDOG) jumped over 12 percent on Thursday, February 10, 2022, after delivering impressive fourth quarter results. The software solutions provider reported adjusted earnings of 20 cents per share, significantly higher than 6 cents per share in the year-ago period.

In addition, Datadog, Inc. (NASDAQ:DDOG) posted revenue of $326.2 million, translating to a massive surge of 84 percent on a year-over-year basis. The results easily topped analysts’ average estimate of 12 cents per share for earnings of and $291.48 million for revenue.

Datadog, Inc. (NASDAQ:DDOG) also released its financial outlook for the first quarter. It expects adjusted earnings in the range of 10 – 12 cents per share and revenue between $334 – $339 million for the current quarter.

3. Twitter, Inc. (NYSE:TWTR)

Number of Hedge Fund Holders: 94

Twitter, Inc. (NYSE:TWTR) recently announced disappointing financial results for the fourth quarter, along with a feeble sales outlook. The weak results sent Twitter shares down nearly two percent on Thursday, February 10, 2022.

For the fourth quarter, Twitter, Inc. (NYSE:TWTR) earned 33 cents per share on an adjusted basis, missing expectations of 35 cents per share. Revenue came in at $1.57 billion, slightly below analysts’ average estimate of $1.58 billion.

Looking forward, Twitter, Inc. (NYSE:TWTR) expects revenue in the range of $1.17 – $1.27 billion for the current quarter. Analysts, on average, had forecast revenue of $1.26 billion for the same period.

Commenting on the results, CEO Ned Segal said:

“Twitter had a solid fourth quarter to finish 2021, with over $5 billion in annual revenue, up 37% for the year. There are no changes to our goals of 315 million average mDAU in Q4 2023 and $7.5 billion or more revenue in 2023. Our increased focus on performance ads and the SMB opportunity after the sale of MoPub positions us even better for 2022 and beyond.”

2. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 101

Shares of The Walt Disney Company (NYSE:DIS) rose over three percent on Thursday, February 10, 2022, after delivering upbeat financial performance for its fiscal first quarter. The entertainment and media giant earned $1.06 per share on an adjusted basis, well above 32 cents per share in the year-ago period. The numbers were also significantly higher than the consensus forecast of 63 cents per share.

Revenue for the quarter surged 34 percent versus last year to $21.82 billion, while analysts expected The Walt Disney Company (NYSE:DIS)  to generate revenue of $20.91 billion. Revenue from its parks, experiences and products segment jumped more than two folds on a year-over-year basis to $7.23 billion in the quarter.

Among other updates, The Walt Disney Company (NYSE:DIS) reported that its total Disney+ subscribers reached 129.8 million at the end of Q1, compared to 94.9 million in the same period one year ago.

Speaking on the results, CEO Bob Chapek said:

“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter.”

1. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 143

Shares of Uber Technologies, Inc. (NYSE:UBER) fell for two straight days despite beating expectations for the fourth quarter. The provider of ride-hailing services posted an adjusted loss of 26 cents per share, narrower than a loss of 35 cents per share estimated by analysts.

Revenue for the quarter climbed 83 percent on a year-over-year basis to $5.8 billion, better than the consensus forecast of $5.360 billion. Among other updates, Uber Technologies, Inc. (NYSE:UBER) reported that its gross bookings for the quarter jumped 51 percent to $25.9 billion, while total trips increased 23 percent to 1.77 billion.

Uber Technologies, Inc. (NYSE:UBER) also issued its financial outlook for Q1. It expects adjusted EBITDA in the range of $100 million and $130 million for the current quarter, below analysts’ average estimate of around $150 million.

Discussing the results, CEO of Uber Technologies, Inc. (NYSE:UBER), Dara Khosrowshahi, said in a statement:

“In Q4, more consumers were active on our platform than ever before, Delivery reached Adjusted EBITDA profitability, and Mobility Gross Bookings approached pre-pandemic levels. While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week.”

You can also take a peek at Morgan Stanley’s Top 10 Stock Picks for 2022 and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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