The US stock market opened close to flat on Wednesday amid growth in global indices pushed higher after weak productivity data weighted on the probability of a rate hike in September.
Among the stocks that are trending today following the release of their latest financial results are Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD), The Walt Disney Company (NYSE:DIS), Cyberark Software Ltd (NASDAQ:CYBR), ViaSat, Inc. (NASDAQ:VSAT), and Fossil Inc (NASDAQ:FOSL). In this article, we are going to take a closer look at the companies in question and assess the hedge fund sentiment towards them.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD)’s stock has plunged by more than 8% after the company reported revenue of $408.4 million for the second quarter of 2016, missing analysts’ estimates by $27.75 million, while EPS of $0.09 was way below expectations of $0.24. Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD)’s funded backlog stood at $2.3 billion at the end of June, compared to $2.4 billion at the end of November, the company said. “The stability of our Aerospace and Defense operating margin in the second quarter of fiscal 2016 supports our belief that our Competitive Improvement Program initiatives are effective and sustainable,” said Eileen Drake, CEO and President of Aerojet Rocketdyne Holdings. Among the funds we track, 19 funds held shares of Aerojet Rocketdyne Holdings Inc. (NYSE:AJRD) at the end of March.
On the other hand, shares of The Walt Disney Company (NYSE:DIS) are trading in the green following the release of the company’s results for the fiscal third quarter, which included revenue of $14.28 billion, which topped the expectations by $130 million, while EPS of $1.62 was higher than the expected $1.61. Across segments, the company’s Media Networks revenue increased by 2% year-on-year to $5.9 billion, while Parks and Resorts, and Studio Entertainment segments saw revenue growth of 6% and 40% to $4.3 billion and 2.84 billion, respectively. However, consumer products & Interactive Media saw a dip of 1% to $1.14 billion. The company’s results were boosted by hit movies like Captain America, Civil War, and Finding Dory. In addition, The Walt Disney Company acquired a 33% stake in video streaming company BAMTECH for $1 billion to secure future of ESPN. A total of 49 investors from our database held shares of The Walt Disney Company at the end of the first quarter.
On the next page, we will discuss how Cyberark Software Ltd (NASDAQ:CYBR), ViaSat, Inc. (NASDAQ:VSAT) and Fossil Inc (NASDAQ:FOSL) performed in their last reported quarters.
Cyberark Software Ltd (NASDAQ:CYBR) is down by more than 6% after the company reported second-quarter EPS of $0.29, which topped estimates by $0.09, while revenue of $50.38 million was higher than the consensus estimate of $48.25 million. The company also provided revenue guidance in the range of $51.5 million to $52.5 million and net income guidance of $0.21 to $0.23 per share for the third quarter, while for the full year, revenue is estimated between $210.5 million and $212.5 million and net income per share is expected between $1.03 and $1.07. Among the funds we track, 19 funds held shares of Cyberark Software Ltd (NASDAQ:CYBR) at the end of March.
ViaSat, Inc. (NASDAQ:VSAT) is trending today on the back of its results for the first quarter of fiscal 2017. The company reported revenue of $363.13 million, versus $371.89 million expected by analysts, while EPS of $0.23 missed the estimates by $0.03. Across segments, the company’s Satellite Services revenue increased by 15.1% year-on-year to $152.4 million, while commercial networks revenue fell by 1.8% to $65.6 million. Revenue from Government Systems remained constant at $145.2 million. The number of residential subscribers served by ViaSat stood at 696,000 at the end of fiscal first quarter of 2017, up by an annual 2%. The number of investors followed by our team that held shares of ViaSat, Inc. (NASDAQ:VSAT) increased to 15 from nine during the first quarter.
Fossil Inc (NASDAQ:FOSL) surprised the Street after the company posted second-quarter revenue of $685.4 million, above the consensus estimate of $671.86 million, while EPS of $0.12 topped estimates by $0.03. The company also announced a revision to its credit agreement which will provide more liquidity going forward. For the third quarter, Fossil Inc (NASDAQ:FOSL) expects sales to decline in the range of 6% to 2% and from 5% to 1.5% for the full year. Heading into the second quarter, 23 funds tracked by Insider Monkey were bullish on the company.