10 Stocks Making Headlines After Earnings Reports

In this article, we will take a look at the 10 stocks making headlines after earnings reports.

Investors seemed disappointed with the latest earnings reports from tech giants, including Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN). Shares of both companies fell after releasing their financial results. As a result, all major U.S. indexes also turned red.

Several other companies, including Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), and Mastercard Incorporated (NYSE:MA), also came into the limelight after releasing their financial results.

Stocks Making Headlines After Earnings Reports

10. Yum! Brands, Inc. (NYSE:YUM)

Number of Hedge Fund Holders: 35

Yum! Brands, Inc. (NYSE:YUM) recently announced better-than-expected financial results for the third quarter. The fast-food company reported adjusted earnings of $1.22 per share, up from $1.01 per share in the same period last year.

Revenue for the quarter rose 11 percent on a year-over-year basis to $1.606 billion. Analysts were expecting Yum! Brands, Inc. (NYSE:YUM) to earn $1.08 per share on revenue of $1.590 billion.

In addition, Yum! Brands, Inc. (NYSE:YUM) reported same-restaurant sales growth of five percent for the quarter. If we break down that by segments, KFC’s same-store sales increased six percent, Pizza Hut’s same-store sales increased 4 percent, while Taco Bell reported same-store sales growth of five percent.

9. Moody’s Corporation (NYSE:MCO)

Number of Hedge Fund Holders: 44

Shares of Moody’s Corporation (NYSE:MCO) made a new 52-week high of $407.08 on Thursday, 28 October 2021, after beating expectations for its fiscal third quarter. The financial services company earned $2.69 per share on an adjusted basis, unchanged from the same period last year and above expectations of $2.52 per share.

Revenue for the quarter came in at $1.526 billion, up 13 percent versus the year-ago quarter. Analysts were looking for revenue of $1.45 billion. If we look at the performance of key segments, revenue from Moody’s Investors Service (MIS) jumped 12 percent to $925 million. In comparison, Moody’s Analytics (MA) generated revenue of $601 million, up 13 percent versus the year-ago quarter.

Moody’s Corporation (NYSE:MCO) also updated its earnings outlook for the full year. The company increased its adjusted earnings guidance to a range of $12.15 – $12.35 per share from $11.55 – $11.85 per share. The revised outlook is better than the consensus forecast of $11.95 per share.

CEO Rob Fauber expressed his satisfaction with the results, saying:

“In the third quarter, Moody’s delivered impressive double-digit revenue growth and invested significantly in its capabilities and product development in order to better serve a number of high-growth markets.”

Like Moody’s Corporation (NYSE:MCO), Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), Apple Inc. (NASDAQ:AAPL), Mastercard Incorporated (NYSE:MA), and Amazon.com, Inc. (NASDAQ:AMZN) are also making headlines after posting their financial results.

8. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 47

Shares of Altria Group, Inc. (NYSE:MO) fell more than six percent, hitting a nearly seven-month low, after announcing lower-than-expected adjusted earnings for the third quarter. The leading producer of tobacco posted adjusted earnings of $1.22 per share, missing the consensus forecast of $1.26 per share.

On the bright side, the quarterly revenue of $6.79 billion surpassed analysts’ average estimate of $5.73 billion. Altria Group, Inc. (NYSE:MO) had reported adjusted earnings of $1.19 per share on revenue of $7.12 billion for the comparable period of 2020.

Looking forward, Altria Group, Inc. (NYSE:MO) expects adjusted earnings in the range of $4.58 – $4.62 per share for the full year, representing year-over-year growth of 5 – 6 percent. This compares to earnings of $4.62 per share estimated by analysts.

Speaking on the results, CEO Billy Gifford said:

“Our tobacco businesses performed well against difficult year-over-year comparisons and we’re encouraged by the significant retail share growth from on! in the third quarter.”

7. Stryker Corporation (NYSE:SYK)

Number of Hedge Fund Holders: 48

Shares of Stryker Corporation (NYSE:SYK) slipped over three percent in the pre-market trading session on Friday, 29 October 2021, after missing profit and sales expectations for the third quarter. The Michigan-based medical technology company reported adjusted earnings of $2.20 per share, up 2.8 percent versus the year-ago quarter.

Revenue for the quarter jumped 11.3 percent on a year-over-year basis to $4.16 billion. However, the results missed analysts’ average estimate of $2.28 per share for earnings and $4.24 billion for revenue.

If we break down the total sales by segments, Orthopaedics revenue jumped 16.1 percent to $1.5 billion, MedSurg revenue rose 9.4 percent to $1.8 billion, while Neurotechnology and Spine revenue increased 7.3 percent to $0.9 billion in the quarter.

Stryker Corporation (NYSE:SYK) also trimmed its profit outlook for the full year, citing the negative impacts of the pandemic. The company now expects adjusted earnings in the range of $9.08 to $9.15 per share, compared to its earlier guidance between $9.25 – $9.40 per share.

Commenting on the quarter, CEO Kevin Lobo said:

“Our teams showed strong resilience and delivered solid quarterly financial results despite a resurgence of COVID-19 that intensified through the quarter. This latest spike mostly impacted our U.S. implant related businesses as scheduled procedures were deferred. Despite those impacts, we delivered strong growth in our MedSurg and NeuroTech businesses and are ready to support our customers as the pandemic recedes.”

Like Stryker Corporation (NYSE:SYK), investors are also closely watching Merck & Co., Inc. (NYSE:MRK), Shopify Inc. (NYSE:SHOP), Apple Inc. (NASDAQ:AAPL), Mastercard Incorporated (NYSE:MA), and Amazon.com, Inc. (NASDAQ:AMZN) after they released their financial results.

6. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 62

Shares of Caterpillar Inc. (NYSE:CAT) rose more than four percent on Thursday, 28 October 2021, after its third quarter adjusted earnings surpassed expectations. The construction and mining equipment maker earned $2.66 per share on an adjusted basis, compared to $1.52 per share in the year-ago quarter.

Revenue came in at $12.4 billion, up 25 percent from $9.9 billion in the comparable period of 2020. Analysts were expecting Caterpillar Inc. (NYSE:CAT) to report earnings of $2.20 per share on revenue of $12.6 billion.

If we see at the performance of key segments, revenue from the construction industries business jumped 30 percent to $5.255 billion, while revenue from the resource industries segment climbed 32 percent to $2.406 billion. In comparison, revenue from the energy & transportation segment increased 22 percent to $916 million in the quarter.

5. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 79

Shares of Merck & Co., Inc. (NYSE:MRK) jumped more than six percent, hitting a nearly two-year high, after crushing expectations for the third quarter. The pharmaceutical giant reported adjusted earnings of $1.75 per share, up from $1.37 per share in the same period last year.

Revenue came in at $13.15 billion, translating to a surge of 20.4 percent on a year-over-year basis. Analysts were expecting Merck & Co., Inc. (NYSE:MRK) to earn $1.55 per share on revenue of $12.32 billion.

The company also updated its financial outlook for 2021. Merck & Co., Inc. (NYSE:MRK) now expects adjusted earnings in the range of $5.65 – $5.70 per share and revenue between $47.4 – $47.9 billion for the full year. The revised outlook compares to the consensus forecast of $5.63 per share for earnings and $47.60 billion for revenue.

Speaking on the results, CEO Robert Davis said:

“Merck delivered another strong quarter with positive momentum across our business and meaningful progress across our pipeline. Our teams continued to excel as we focus on evolving our operations, while driving innovations in our labs that exemplify the best of Merck science.”

4. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 85

Shares of Shopify Inc. (NYSE:SHOP) rose over seven percent on Thursday, 28 October 2021, despite announcing lower-than-expected profit and sales for the third quarter. The Canadian e-commerce giant reported adjusted earnings of 81 cents per share, missing the consensus forecast of $1.23 per share.

Revenue came in at $1.12 billion, also below analysts’ average estimate of 1.15 billion. Shopify Inc. (NYSE:SHOP) had posted adjusted earnings of $1.13 per share on revenue of $767 million for the comparable period of 2020.

Looking at the key growth indicators, revenue from subscription solutions in the quarter jumped 37 percent on a year-over-year basis to $336.2 million amid a surge in the number of vendors joining the platform. In comparison, merchant solutions revenue climbed 51 percent versus last year to $787.5 million.

Commenting on the quarter, CFO Amy Shapero said:

“Our results show that Shopify is executing well, giving our merchants the tools they need to compete in differentiated ways in a growing number of markets. We remain focused on simplifying commerce for our merchants so they can take full advantage of what digital makes possible and reimagine retail.”

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 138

Shares of Apple Inc. (NASDAQ:AAPL) turned red in the pre-market trading session on Friday, 29 October 2021, after revenue for its fiscal fourth-quarter missed expectations. The world’s most valuable tech company reported earnings of $1.24 per share, up from 73 cents per share in the year-ago quarter.

Revenue came in at $83.4 billion, up 29 percent on a year-over-year basis. Analysts were expecting Apple Inc. (NASDAQ:AAPL) to earn $1.24 per share on revenue of $84.9 billion.

Now, we will look at the sales performance of Apple Inc. (NASDAQ:AAPL)’s flagship products. iPhones revenue in the quarter jumped 47 percent on a year-over-year basis to $38.9 billion, while iPad revenue jumped 21 percent to $8.3 billion. In comparison, Mac revenue inched up two percent to $9.2 billion.

Discussing the results, CFO Luca Maestri said:

“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment.”

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 156

Mastercard Incorporated (NYSE:MA) recently caught investors’ attention after announcing better-than-expected profit and revenue for the third quarter. The financial services company earned $2.37 per share on an adjusted basis during the three months ended 30 September 2021, up from $1.60 per share it earned in the same period, a year earlier.

Revenue for the quarter increased 30 percent on a year-over-year basis to $4.99 billion. Analysts were expecting Mastercard Incorporated (NYSE:MA) to post earnings of $2.19 per share on revenue of $4.95 billion.

Speaking on the results, CEO Michael Miebach said:

“We saw continued momentum across the business as we delivered strong revenue and earnings growth again this quarter. Our performance was driven by the execution of our strategy, healthy domestic spending and solid growth in cross-border spending which has recently returned to pre-pandemic levels.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 271

Amazon.com, Inc. (NASDAQ:AMZN) enjoyed massive growth last year following the Covid-19 outbreak. The pandemic-driven lockdown restrictions forced people to buy essential goods from online sites, including Amazon. The trend helped these companies achieve new growth milestones.

However, those online players are now finding it hard to keep up the growth pace they accomplished in 2020. The same thing happened with Amazon.com, Inc. (NASDAQ:AMZN) when it recently announced its financial results for the third quarter. The weak results sent its shares down nearly five percent in the pre-market trading session on Friday, 29 October 2021.

Amazon.com, Inc. (NASDAQ:AMZN) reported earnings of $6.12 per share, significantly down from $12.37 per share in the year-ago quarter. The drop was mainly attributed to tougher comparison on a year-over-year basis.

Revenue for the quarter rose 15 percent versus last year to $110.8 billion. The results fell short of analysts’ average estimate of $8.90 per share for earnings and $111.55 billion for revenue. Looking forward, Amazon.com, Inc. (NASDAQ:AMZN) expects revenue in the range of $130 billion to $140 billion for the fourth quarter, below the consensus forecast of $142.1 billion.

Speaking on the results, CEO Andy Jassy said:

“In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season. It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”

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Disclosure: None. 10 Stocks Making Headlines After Earnings Reports is originally published on Insider Monkey.