5 Stocks That Beat Profit Expectations

In this article, we discuss the 5 stocks that beat profit expectations. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks That Beat Profit Expectations.

5. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 66

Shares of McDonald’s Corporation (NYSE:MCD) rose nearly three percent on Wednesday, 27 October 2021, after announcing better-than-expected results for the third quarter. The results were helped by higher menu prices that balanced the negative impact of rising costs.

The fast-food giant reported adjusted earnings of $2.76 per share, easily beating expectations of $2.46 per share. Revenue came in at $6.2 billion, ahead of the consensus forecast of $6.05 billion. McDonald’s Corporation (NYSE:MCD) had posted adjusted earnings of $2.22 per share on revenue of $5.4 billion for the comparable period of 2020.

Speaking on the results, CEO Chris Kempczinski said:

“Our third quarter results are a testament to our unparalleled scale and agility. Our global comparable sales increased 10% over 2019, which was delivered across an omnichannel experience that is focused on meeting the needs of our customers. We continue to execute our strategic growth plan and run great restaurants so that we can drive long-term, sustainable growth for all of our stakeholders.”

4. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 73

Shares of Bristol-Myers Squibb Company (NYSE:BMY) turned red on Wednesday, 27 October 2021, despite beating expectations for the third quarter. The biopharmaceutical giant earned $2 per share on an adjusted basis, up 23 percent from $1.63 per share in the comparable period of 2020. Analysts were looking for earnings of $1.92 per share.

Revenue for the quarter jumped 10 percent on a year-over-year basis to $11.62 billion, just ahead of the consensus forecast of $11.61 billion. The company attributed the latest performance to strong demand for Revlimid, Eliquis, and Opdivo.

If we break down the total revenue by region, U.S. revenue jumped 12 percent on a year-over-year basis to $7.3 billion. In comparison, international revenue rose eight percent to $4.3 billion in the quarter.

Looking forward, Bristol-Myers Squibb Company (NYSE:BMY) expects adjusted earnings in the range of $7.40 – $7.55 per share for the full year, compared to its previous forecast of $7.35 – $7.55 per share.

Commenting on the quarter, CEO Giovanni Caforio said:

“Our strong results reflect increased adoption of our new product portfolio and continued demand growth across all four core therapeutic areas. Our teams advanced the product portfolio and achieved significant regulatory and clinical milestones, including for the fixed-dose combination of relatlimab and nivolumab. Our deep and diverse product pipeline, commercial execution and financial flexibility provide a strong foundation that is enabling the company to bring new medicines that benefit patients with serious unmet needs, drive in-line product performance and deliver sustained growth.”

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 87

Shares of Thermo Fisher Scientific Inc. (NYSE:TMO) made a new 52-week high of $625.99 after announcing its third-quarter profit and sales above expectations. The maker of scientific equipment reported adjusted earnings of $5.76 per share on revenue of $9.33 billion.

Analysts were looking for earnings of $4.68 per share on revenue of $8.38 billion. The results were also better than adjusted earnings of $5.63 per share on revenue of $8.52 Thermo Fisher Scientific Inc. (NYSE:TMO) posted in the comparable period of 2020.

If we look at the performance of its flagship segments, revenue from the life sciences solutions segment rose nine percent to $3.72 billion, revenue from the analytical instruments segment jumped 11 percent to $1.48 billion, while revenue from the laboratory products and services segment increased 12 percent to $3.49 billion in the quarter. In comparison, revenue from the specialty diagnostics segment came in at $1.36 billion, down from $1.43 billion in the year-ago quarter.

Thermo Fisher Scientific Inc. (NYSE:TMO) also raised its financial outlook for the full year. The company now expects adjusted earnings of about $23.37 on revenue of approx. $37.1 billion. The updated guidance is above analysts’ average estimate of $22.21 per share for earnings and $36.1 billion for revenue.

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 91

Shares of ServiceNow, Inc. (NYSE:NOW) slipped nearly two percent in the after-hours trading session on Wednesday, 27 October 2021, despite delivering strong results for the third quarter. The California-based software company reported adjusted earnings of $1.55 per share, up from $1.21 per share in the comparable period of 2020.

Revenue for the quarter came in at $1.51 billion, compared to $1.15 billion in the year-ago quarter. Analysts were expecting ServiceNow, Inc. (NYSE:NOW) to report earnings of $1.39 per share on revenue of $1.48 billion.

If we look at the key growth indicators, the company’s subscription revenue of $1.43 billion and subscription billings of approx. $1.38 billion in the quarter were also ahead of the consensus forecast.

For the fourth quarter, ServiceNow, Inc. (NYSE:NOW) expects subscription revenue of approx. 1.52 billion and billings of about $2.31 billion. This compares to the consensus forecast of 1.51 billion for subscription revenue and $2.31 billion for billings.

Discussing the results, CFO Gina Mastantuono said:

“Q3 was another fantastic quarter with continued outperformance across all of our growth and profitability guidance metrics. The consistency of our results exemplifies the strength of our product portfolio and the team’s focus on building deep customer relationships. We are well positioned as the workflow standard on our journey to becoming a $15+ billion revenue company.”

1. Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 98

Twilio Inc. (NYSE:TWLO) recently announced better-than-expected results for the third quarter. However, its fourth-quarter outlook fell short of expectations. The disappointing guidance overshadowed the strong Q3 results, sending Twilio shares down nearly 14 percent in the pre-market trading session on Thursday, 28 October 2021.

The San Francisco-based cloud communications platform expects an adjusted loss in the range of 23 – 26 cents per share for the fourth quarter, wider than a loss of 10 cents per share estimated by analysts.

For the third quarter, Twilio Inc. (NYSE:TWLO) reported an adjusted profit of one cent per share on revenue of $740.2 million. Analysts were looking for an adjusted loss of 14 cents per share on revenue of $681 million.

Twilio Inc. (NYSE:TWLO) had posted adjusted earnings of 4 cents per share on revenue of $448 million for the comparable period of 2020.

Speaking on the results, CEO Jeff Lawson said:

“We delivered another quarter of strong growth at scale in the third quarter as companies continue to turn to Twilio in this digital-first world. We are extremely excited about the next generation of our customer engagement platform, and our newest pillar, Twilio Engage, which will allow companies of all sizes and in any industry to build and optimize hyper-personalized marketing campaigns on every channel for customer acquisition, conversion and retention.”

You can also take a peek at 10 Best Airline Stocks To Buy Today and 15 Best Bank Stocks To Buy Now.

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