5 Stocks Under Investors’ Radar After Releasing their Earnings Reports

In this article, we discuss the 5 stocks under investors’ radar after releasing their earnings reports. If you want to read our detailed analysis of these companies, go directly to the 10 Stocks Under Investors’ Radar After Releasing their Earnings Reports.

5. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Holders: 44

Shares of Darden Restaurants, Inc. (NYSE:DRI) rallied to an all-time high of $164.28 on Thursday, 23 September 2021, after delivering impressive results for its fiscal first quarter. The Florida-based restaurant operator reported earnings of $1.76 per share for the three months ended 29 August 2021, well above 28 cents per share in the comparable period of 2020.

In addition, Darden Restaurants, Inc. (NYSE:DRI) posted revenue of $2.31 billion, translating to a surge of 51 percent on a year-over-year basis. The results surpassed the consensus forecast of $1.64 per share for earnings and $2.240 billion for revenue.

Darden Restaurants, Inc. (NYSE:DRI) also updated the financial outlook for its fiscal year 2022. It expects earnings in the range of $7.25 – $7.60 per share, in line with the consensus forecast of $7.43 per share. Revenue for the full year is expected to come between $9.4 billion – $9.6 billion, compared to analysts’ average estimate of $9.408 billion.

4. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 50

Lennar Corporation (NYSE:LEN) is a leading homebuilder in the United States. It recently announced mixed financial results for its fiscal third quarter ended 31 August 2021. The company reported earnings of $4.52 per share, more than doubled from $2.12 per share in the year-ago quarter.

Revenue came in at $6.9 billion, compared to $5.9 billion in the same period last year. Analysts were expecting Lennar Corporation (NYSE:LEN) to report earnings of $3.26 per share on revenue of $7.1 billion. Home deliveries in the quarter rose 10 percent to 15,199, while gross margin on home sales improved to 27.3 percent.

Speaking on the results, CEO Stuart Miller said:

“During the third quarter, our company and the homebuilding industry as a whole continued to experience unprecedented supply chain challenges which we believe will continue into the foreseeable future. As a result, our third quarter deliveries of 15,199 homes were about 600 homes below the low end of our guidance. Additionally, we are adjusting our fourth quarter delivery guidance to, more or less, 18,000 homes, reflecting this supply chain constraint.”

3. Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 52

Accenture plc (NYSE:ACN) recently came into the limelight after announcing financial results for its fiscal fourth quarter. The Irish IT services company reported earnings of $2.20 per share for the three months ended 31 August 2021, up from $1.99 per share in the comparable period of 2020.

Revenue came in at $13.4 billion, up 24 percent versus the year-ago quarter. Analysts were expecting Accenture plc (NYSE:ACN) to report earnings of $2.19 per share on revenue of $13.42 billion.

If we look at the performance of key segments, consulting revenue in the quarter jumped 29 percent on a year-over-year basis to $7.31 billion, while outsourcing revenue rose 19 percent to $6.11 billion.

Praising the results, CEO Julie Sweet said in a statement:

“We are very proud of our outstanding fiscal 2021 financial performance, reflecting growth significantly above the market and strong momentum heading into fiscal 2022. Our results reflect the dedication and hard work of our 624,000 incredible people, who are laser-focused on creating tangible value for our clients, innovating with our ecosystem, and being the trusted partner of choice on our clients’ transformation journeys.”

Accenture plc (NYSE:ACN) also released the financial outlook for its fiscal year 2022. It expects earnings in the range of $9.90 – $10.18 per share and revenue growth between 12 – 15 percent for the full year.

2. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 54

Shares of Costco Wholesale Corporation (NASDAQ:COST) hit a new 52-week high of $468.72 on Friday, 24 September 2021, after announcing record revenue for its fiscal fourth quarter. The company posted revenue of $61.44 billion for the three months ended 29 August 2021, up 17.5 percent from $53.38 billion in the year-ago quarter.

In addition, Costco Wholesale Corporation (NASDAQ:COST) reported earnings of $3.76 per share, compared to $3.51 per share in the comparable period of 2020. The results exceeded the consensus forecast of $3.58 per share for earnings and $61.41 billion for revenue.

Speaking on the results, CFO Richard Galanti said Costco is once again putting limits on purchases of certain products to ensure the availability of essential items, such as toilet paper and bottled water, across its stores. The latest announcement came amid resurgences in Covid-19 cases that could lead people to buy essential items in bulk, as they did last year.

1. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 67

NIKE, Inc. (NYSE:NKE) recently announced a better-than-expected profit for its fiscal first quarter, but its revenue fell short of expectations. As a result, NIKE shares fell more than 6 percent on Friday, 24 September 2021.

The athletic shoes and clothing retailer reported earnings of $1.16 per share for the three months ended 31 August 2021, up from 95 cents per share in the same period last year. Analysts were expecting NIKE, Inc. (NYSE:NKE) to post earnings of $1.12 per share.

Revenue came in at $12.2 billion, up 16 percent from $10.6 billion in the comparable period of 2020. However, it was marginally down from the consensus forecast of $12.5 billion. NIKE, Inc. (NYSE:NKE) said that direct sales in the quarter rose 28 percent, while digital sales jumped 29 percent.

Commenting on the quarter, CFO Matt Friend said:

“NIKE is a growth company with a market opportunity as large as it’s ever been. Our Q1 results illustrate how NIKE’s Consumer Direct Acceleration strategy continues to fuel growth and transform our long-term financial model.”

You can also take a peek at 15 Best Short Squeeze Stocks To Buy Now and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.

Follow Insider Monkey on Twitter