In this article, we discuss the 5 tech stocks gaining value after earnings. If you want to see some more tech companies trading higher following their quarterly results, go directly to 10 Tech Stocks Gaining Value After Earnings.
5. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 42
Shares of Microchip Technology Incorporated (NASDAQ:MCHP) rose to a nearly two-month high on Wednesday, August 3, 2022, after surpassing profit and sales expectations for its fiscal first quarter.
Microchip Technology Incorporated (NASDAQ:MCHP) reported adjusted earnings of $1.37 per share, well above 99 cents per share in the year-ago period. Revenue for the quarter jumped 25.1 percent on a year-over-year basis to $1.964 billion. The results were better than the consensus of $1.34 per share for earnings and $1.95 billion for revenue.
Among other updates, Microchip Technology Incorporated (NASDAQ:MCHP) announced that it paid back a debt of $233.6 million in the June quarter. Moreover, the company also repurchased 2.9 million shares of its common stock during the same period.
4. Dynatrace, Inc. (NYSE:DT)
Number of Hedge Fund Holders: 43
Dynatrace, Inc. (NYSE:DT) announced better-than-expected financial results for its fiscal first quarter, sending its shares up more than five percent on Wednesday, August 3, 2022. The provider of the software intelligence platform earned 18 cents per share on an adjusted basis, compared to 16 cents per share in the same period of 2021.
Revenue came in at $267 million, representing a year-over-year gain of 32 percent. Analysts expected Dynatrace, Inc. (NYSE:DT) to post earnings of 17 cents per share on revenue of $262.43 million.
For the current quarter, Dynatrace, Inc. (NYSE:DT) expects adjusted earnings in the range of 18 – 19 cents per share and revenue between $272 – $275 million.
Praising the results, CEO Rick McConnell said:
“Q1 was yet another quarter of solid execution with balanced growth and profitability highlighting the durability of our business in the current environment. We continue to see digital transformation initiatives with clear and measurable ROI as a top priority for the global 15,000 organizations that we target. Automation and AIOps are requirements for companies looking to do more with less time, resource, and cost. Our platform is rooted in these capabilities, which differentiate us from our competitors and position us well for continued growth and success in the future.”
3. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 48
ON Semiconductor Corporation (NASDAQ:ON) delivered record financial results for the second quarter on Monday, August 1, 2022. The stock initially fell but then jumped to a nearly seven-month high following the results.
The Arizona-based semiconductor supplier reported adjusted earnings of $1.34 per share, representing a jump of more than two folds over the year-ago period. In addition, ON Semiconductor Corporation (NASDAQ:ON) posted revenue of $2.085 billion, up 25 percent on a year-over-year basis. The results easily exceeded the consensus of $1.26 per share for earnings and $2.010 billion for revenue.
Several research firms increased their price targets for ON Semiconductor Corporation (NASDAQ:ON) following its latest quarterly performance. Jefferies lifted its price target for the semiconductor company from $75 per share to $77 per share, while Deutsche Bank raised its price target from $65 per share to $75 per share.
2. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 48
Shares of ZoomInfo Technologies Inc. (NASDAQ:ZI) have been trading higher since reporting its second-quarter results on Monday, August 1, 2022. The provider of marketing solutions reported adjusted earnings of 21 cents per share, beating the consensus of 17 cents per share.
Revenue for the quarter soared 54 percent versus last year to $267.1 million, while analysts were expecting ZoomInfo Technologies Inc. (NASDAQ:ZI) to generate revenue of $252.75 million
Besides solid Q2 earnings, ZoomInfo Technologies Inc. (NASDAQ:ZI) also raised its financial outlook for 2022. It expects adjusted earnings of 78 – 80 cents per share on revenue of $1.08 – $1.09 billion for the full year. Earlier, it was looking for adjusted earnings of 75 – 77 cents per share and revenue of $1.06 – $1.07 billion.
Separately, asset management firm Baron Funds also mentioned ZoomInfo Technologies Inc. (NASDAQ:ZI) in its first-quarter 2022 investor letter, stating:
“ZoomInfo Technologies Inc. operates a cloud-based B2B platform that provides sales, marketing, and HR teams with comprehensive business intelligence, enabling shorter sales cycles and higher win rates. While the stock was down 7% over the course of the first quarter, well-timed purchases turned it into a contributor that added 18bps to absolute returns. The company continues to execute well with another positive quarterly earnings surprise and strong forward bookings, with 2021 revenues growing 57% year-over-year, and with 46% free-cash-flow margins. New products are starting to build momentum, and we believe ZoomInfo can become a much larger company over time as it penetrates its $70 billion total addressable market.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 144
Shares of Uber Technologies, Inc. (NYSE:UBER) climbed nearly 19 percent on Tuesday, August 2, despite announcing mixed results for the second quarter. Perhaps, investors seemed impressed with the company’s Q2 revenue, which skyrocketed 105 percent on a year-over-year basis to $8.1 billion and crushed the consensus of $7.4 billion.
On the downside, Uber Technologies, Inc. (NYSE:UBER) reported a loss of $1.33 per share, much wider than analysts’ average estimate for a loss of 27 cents per share.
Among other updates, Uber Technologies, Inc. (NYSE:UBER) reported that gross booking for the quarter jumped 33 percent to $29.1 billion, with mobility gross bookings rising 55 percent and delivery gross bookings improving 7 percent on a year-over-year basis.
For the current quarter, Uber Technologies, Inc. (NYSE:UBER) projected adjusted EBITDA in the range of $440 – $470 million and gross bookings between $29 – $30 billion.
Speaking on the results, CFO Nelson Chai said:
“We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum. This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximizing long-term returns for shareholders.”
You can also take a peek at 10 Dividend Stocks to Buy According to John Allison’s Unio Capital and Jim Cramer Recommends These 10 Stocks For Recession.
