10 Stocks That Surpassed Earnings Expectations

Published October 15, 2021 at 2:26 pm EDT Updated August 19, 2026 at 5:25 am EDT

In this article, we will take a look at the 10 stocks that surpassed earnings expectations.

Leading U.S. banks announced their quarterly financial results in the first week of the third-quarter earnings season. Some notable names include The Goldman Sachs Group, Inc. (NYSE:GS), Citigroup Inc. (NYSE:C), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC).

All of the aforesaid stocks surpassed earnings expectations for the third quarter. The better-than-expected performance from these leading financial institutions lifted all three key indexes. As of 11:27 AM ET on 15 October, the S&P 500 was up 0.63 percent, the Dow Jones was up 0.84 percent, while the Nasdaq Composite was positive 0.49 percent.

Photo by Ishant Mishra on Unsplash

Let’s jump on to our list of 10 stocks that recently surpassed earnings expectations.

10 Stocks That Surpassed Earnings Expectations

10. SMART Global Holdings, Inc. (NASDAQ:SGH)

Number of Hedge Fund Holders: 20

Shares of SMART Global Holdings, Inc. (NASDAQ:SGH) rose for two consecutive trading sessions, hitting a three-month high, after the company delivered strong results for its fiscal fourth quarter on Tuesday, 12 October 2021.

The provider of specialty memory solutions reported adjusted earnings of $2.16 per share for the three months ended 27 August 2021, significantly higher than 82 cents per share in the year-ago quarter.

In addition, SMART Global Holdings, Inc. posted revenue of $467.7 million, representing a year-over-year surge of 57 percent. The results easily surpassed the consensus forecast of $1.60 per share for earnings and $461.3 million for revenue.

Looking forward, SMART Global Holdings, Inc. expects earnings in the range of $1.80 – $2.20 per share and revenue between $440 million – $480 million for its fiscal first quarter.

9. Infosys Limited (NYSE:INFY)

Number of Hedge Fund Holders: 22

Infosys Limited (NYSE:INFY) recently announced better-than-expected financial results for the third quarter. The digital services and consulting firm reported earnings of 17 cents per share, up from 15 cents per share in the comparable period of 2020.

Revenue for the quarter jumped 20.7 percent on a year-over-year basis to $4 billion. Analysts were expecting Infosys Limited to report earnings of 17 cents per share on revenue of $3.9 billion.

Speaking on the results, CEO Salil Parekh said in a statement:

“As we witness a strong market opportunity with global enterprises rapidly accelerating their digital journeys, our sustained investments in expanding capabilities, including the differentiated cloud play, Infosys Cobalt™, has uniquely positioned us to continue serving our clients effectively, gain market share and emerge as the preferred cloud and digital transformation partner in the market.”

Like Infosys Limited, analysts are also closely watching The Goldman Sachs Group, Inc., Citigroup Inc., Bank of America Corporation, and Wells Fargo & Company after their earnings reports.

8. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)

Number of Hedge Fund Holders: 26

Shares of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) rose more than three percent in the pre-market trading Friday, 15 October 2021, after posting its profit and sales for the third quarter above expectations.

The transportation and logistics company reported earnings of $1.88 per share, beating the consensus forecast of $1.78 per share. Revenue for the quarter came in at $3.14 billion, ahead of analysts’ average estimate of $3.02 billion. J.B. Hunt Transport Services, Inc. had reported earnings of $1.18 per share on revenue of $2.47 billion in the comparable period of 2020.

Discussing the results, J.B. Hunt Transport Services, Inc. said double-digit revenue growth across all key business segments offset the effects of rising wages and high transportation cost during the quarter.

If we compare the year-over-year performance of key segments, truckload revenue climbed 87 percent, integrated capacity solutions revenue jumped 55 percent, while intermodal revenue rose 17 percent in the quarter. In comparison, dedicated contract services revenue increased 20 percent.

7. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders: 39

Truist Financial Corporation (NYSE:TFC) announced its financial results for the third quarter on Friday, 15 October 2021. The North Carolina-based financial holding company said that its adjusted earnings for the quarter jumped 46 percent on a year-over-year basis to $1.42 per share, beating the consensus forecast of $1.21 per share.

Revenue for the quarter came in at $5.6 billion, up 2.3 percent from the comparable period of 2020. Analysts were expecting Truist Financial Corporation to post revenue of $5.470 billion.

Looking at the key growth indicators, average loans and leases for the third quarter slipped 0.8 percent to $286.2 billion on a sequential basis. In comparison, average deposits for the quarter rose 1.6 percent to $6.5 billion when compared to the prior quarter.

Commenting on the quarter, CEO William H. Rogers Jr said in a statement:

“Truist produced solid results in the third quarter, driven by strong fee income from our diverse business mix – including wealth, insurance brokerage, investment banking, and positive trends in a number of other businesses given improving economic conditions.”

Like Truist Financial Corporation, The Goldman Sachs Group, Inc., Citigroup Inc., Bank of America Corporation, and Wells Fargo & Company also caught investors’ attention after posting their financial results.

6. Alcoa Corporation (NYSE:AA)

Number of Hedge Fund Holders: 44

Shares of Alcoa Corporation (NYSE:AA) rose more than 7 percent in the pre-market trading session on Friday, 15 October 2021, after the company swung to profit in the third quarter. The results were mainly driven by higher prices of aluminum and alumina.

Alcoa Corporation reported adjusted earnings of $2.05 per share, compared to an adjusted loss of 1.17 per share in the same period last year. Revenue came in at $3.11 billion, significantly higher than $2.37 billion in the year-ago quarter. The results topped the consensus forecast of $1.76 per share for earnings and $2.93 billion for revenue.

In addition, Alcoa Corporation surprised investors by announcing a 10 cent per share dividend, marking the first dividend payment since 2016. The company also revealed a share buyback plan of $500 million.

Moving forward, Alcoa Corporation expects a stronger 2021 amid higher demand for aluminum and improving economy. The company projected double digit growth for its Aluminum segment. It expects demand for aluminum to increase about 10 percent this year compared to 2022.

Speaking on the results, CEO Roy Harvey said in a statement:

“The strategic work we’ve been implementing across our Company has helped us effectively capture the benefits from very strong market fundamentals and deliver another excellent quarter with record profitability. Today, Alcoa is stronger and better poised for the future, and we plan to continue our positive momentum and consistently deliver value through the commodity cycle.”

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 61

Shares of The Goldman Sachs Group, Inc. rose nearly two percent in the pre-market trading session on Friday, 15 October 2021, after the banking giant crushed expectations for the third quarter.

The Goldman Sachs Group, Inc. reported earnings of $14.93 per share for the three months ended 30 September 2021, well above $8.98 per share in the same period last year. Revenue for the quarter jumped 26 percent on a year-over-year basis to $13.6 billion.

Analysts were expecting Goldman Sachs Group, Inc. to report earnings of $10.14 per share on revenue of $11.72 billion.

If we see the performance of key divisions, revenue from the investment banking segment climbed 88 percent to $3.70 billion, revenue from the consumer and wealth management segment jumped 35 percent to $2.02 billion, while global markets revenue rose 23 percent to $5.61 billion. In comparison, asset management revenue fell 18 percent to $2.28 billion in the quarter.

4. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 72

Shares of The Charles Schwab Corporation (NYSE:SCHW) hit an all-time high of $81 on Friday, 15 October 2021, after the Texas-based financial services company announced strong financial results for the third quarter.

The Charles Schwab Corporation reported adjusted earnings of 84 cents per share, beating the consensus forecast of 81 cents per share. Revenue came in at $4.57 billion, ahead of analysts’ average estimate of $4.52 billion. The company had reported earnings of 51 cents per share on revenue of $2.45 billion in the comparable period of 2020.

Speaking on the results, CFO Peter Crawford said:

“Consistent execution of our strategy and sustained business momentum, in combination with our diversified revenue model, helped produce impressive financial performance in the third quarter.”

3. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 87

Citigroup Inc. recently came into the limelight after announcing better-than-expected financial results for the third quarter. The New York-based bank reported earnings of $2.15 per share, significantly higher than $1.36 per share in the year-ago quarter.

Revenue came in at $17.2 billion, marginally down from $17.3 billion in the comparable period of 2020. Analysts were expecting Citigroup Inc. to post revenue of $16.98 billion.

If we see the year-over-year performance of key segments, revenue from the institutional clients group rose 4 percent to $10.8 billion, while global consumer banking revenue fell 13 percent. In addition, Citigroup Inc. announced that it repurchased 43 million shares of its common stock during the quarter.

Commenting on the quarter, CEO Jane Fraser said:

“The recovery from the pandemic continues to drive corporate and consumer confidence and is creating very active client engagement as you can see through our strong results in Investment Banking and Equity Markets, both up approximately 40% year-over-year, in addition to double- digit fee growth in Treasury and Trade Solutions as we help our clients reposition their supply chains. And while strong consumer balance sheets have impacted lending, we are seeing higher consumer spending across our cards products. We also continue to show momentum in deposits and wealth management AUM as well as growing engagement across our digital channels. Overall, our revenues were 3% higher than last year excluding the impact of the sale of our consumer business in Australia.”

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 87

Shares of Bank of America Corporation hit a new 52-week high of $46.27 on Friday, 15 October 2021, after the Charlotte-based financial services holding company posted better-than-expected results for the third quarter.

Bank of America Corporation reported earnings of 85 cents per share, beating the consensus forecast of 71 cents per share. Revenue came in at $22.8 billion, ahead of the consensus forecast of $21.68 billion. The company had reported earnings of 51 cents per share on revenue of $20.3 billion in the same period last year.

Discussing the results, CEO Brian Moynihan said in a statement:

“We reported strong results as the economy continued to improve and our businesses regained the organic customer growth momentum we saw before the pandemic. Deposit growth was strong and loan balances increased for the second consecutive quarter, leading to an improvement in net interest income even as interest rates remained low.”

1. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 94

Shares of Wells Fargo & Company rose more than five percent in the morning trading session on Friday, 15 October 2021, after the banking giant surpassed expectations for the third quarter.

Wells Fargo & Company reported earnings of $1.17 per share for the three months ended 30 September 2021, up from 70 cents per share in the year-ago quarter. Revenue for the quarter came in at $18.834 billion, down from $19.316 billion in the comparable period of 2020. The results exceeded analysts’ average estimate of $1 per share for earnings and $18.273 billion for revenue.

If we look at the important growth indicators, net interest income for the quarter slipped 5 percent on a year-over-year basis to $8.909 billion amid lower loan balances. Wells Fargo & Company reported that average loans for the quarter decreased 8 percent to $854.0 billion. On the bright side, average deposits for the quarter rose 4 percent to $1.451 trillion.

In addition, Wells Fargo & Company announced that it repurchased $5.3 billion worth of its common stock during the quarter. Moreover, it also raised the dividend from 10 cents per share to 20 cents per share.

Speaking on the results, CEO Charlie Scharf said:

“The actions we’re taking to improve operating effectiveness and financial returns are coming through in our results, in addition to the benefits we’re experiencing from the economic recovery. We recorded a $1.7 billion pre-tax reduction in the allowance for credit losses and had strong equity gains. More importantly, charge-offs were low, net interest income stabilized and period-end loans grew for the first time since first quarter 2020. Expenses continued to decline as we made progress on our efficiency initiatives, and we increased our capital return to shareholders by repurchasing $5.3 billion of common stock and increasing our dividend.”

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