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Earnings Stealing Headlines: See How Yahoo, Intel, Coca-Cola, DISH, and VMware Performed in Q1

Another day, another series of scintillating earnings reports. This time, major companies such as The Coca-Cola Co (NYSE:KO), DISH Network Corp (NASDAQ:DISH), VMware, Inc. (NYSE:VMW), Yahoo! Inc. (NASDAQ:YHOO), and Intel Corporation (NASDAQ:INTC) are among those who have reported their latest quarterly results, either this morning or after the market closed yesterday. Some hit it out of the park while others swung and missed. Let’s take a closer look at each company’s quarterly performance or other news and see how the smart money tracked by Insider Monkey is positioned in each stock.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

Coca Cola Down on Earnings

The Coca-Cola Co (NYSE:KO) is down by 4.6% in morning trading after the company reported mixed quarterly results. Although Coca-Cola’s EPS beat estimates by a penny at $0.45, its revenue was just in-line with expectations at $10.28 billion. Some traders are a little disappointed with Coca-Cola’s organic year-over-year revenue increase of 2% for the quarter, which was lower than PepsiCo, Inc. (NYSE:PEP)’s organic revenue growth of 3.5% for the same period. The two companies had about the same full-year organic growth outlook, of around 4%-to-5%, though Coca-Cola now has some work to do to achieve even the low-end of that. Coca-Cola CEO Muhtar Kent however believes the company’s growth targets will still be reached:

“Amidst a challenging global macro environment, the continued focus on our five strategic initiatives enabled us to gain global value share in the first quarter and deliver positive top-line growth and strong underlying margin expansion. Our operating results are driven by our commitment to sustainable growth, and we are confident that we have the right strategies in place to achieve our full-year outlook and drive long-term value for our system and shareowners.”

Despite the underwhelming results, investors will surely stick with Coca-Cola, which is one of the pillars of Warren Buffett‘s portfolio. His holding company Berkshire Hathaway owned 400 million shares of The Coca-Cola Co (NYSE:KO) at the end of December.

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DISH Reports Solid Results

DISH Network Corp (NASDAQ:DISH) shares are 1.6% in the green after the company reported solid quarterly results. For the first quarter, DISH Network earned $0.84 per share on revenue of $3.79 billion, beating earnings estimates by $0.22 per share despite missing top-line expectations by $10 million. Net pay TV subscribers declined by 23,000 while PAY TV ARPU averaged $87.94, up from last year’s $85.73. Subscriber revenue inched up to $3.78 billion from the previous $3.70 billion. Hedge fund sentiment for DISH Network Corp (NASDAQ:DISH) was stable in the fourth quarter, with the number of elite funds that we track falling by just one quarter-over-quarter to 52 by the end of December.

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On the next page, we examine the earnings results posted by VMware Inc, Yahoo! Inc, and Intel. 

VMware Surges on Earnings Beat

VMware, Inc. (NYSE:VMW) has surged by more than 12% in morning trading after the company reported earnings of $0.86 per share on revenue of $1.59 billion, beating estimates by $0.02 per share and $10 million respectively. Operating cash flow for the time period was $720 million while free cash flow was $679 million. Although license revenue dropped by 1% to $572 million, the company authorized a $1.2 billion share buyback program. CEO Pat Gelsinger remarked on the positive results:

“Q1 was a good start to 2016. We made solid progress with our strategic goal of building momentum for our newer growth businesses and in the cloud. We continue to see momentum across our portfolio of growth products and businesses, including NSX, Virtual SAN and End-User Computing.”

VMware, Inc. (NYSE:VMW) was in 42 top fund’s portfolios at the end of 2015, out of the 786 top funds that Insider Monkey tracks in our database.

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Yahoo Earnings Exceed Expectations

Yahoo! Inc. (NASDAQ:YHOO) is 3% higher today after the company beat expectations. For the first quarter, the internet giant earned $0.08 per share on revenue of $1.09 billion, versus estimates of $0.07 per share in earnings and $1.08 billion in revenue. Mobile, video, native, and social revenue rose by 6.8% year-over-year to $390 million and is on target to hit management’s target of $1.8 billion for the full year. Although Yahoo’s second quarter GAAP revenue guidance of $1.05 billion-to-$1.09 billion, and EBITDA guidance of $135 million-to-$155 million were slightly lower than expectations, traders are brushing the numbers off in anticipation of a sale of Yahoo’s core assets, which might fetch anywhere from $4 billion-to-$8 billion. 84 elite funds in our system owned Yahoo! Inc. (NASDAQ:YHOO) at the end of the fourth quarter.

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Intel Announces Massive Job Cuts Along With Quarterly Results

For the first quarter, Intel Corporation (NASDAQ:INTC) reported earnings of $0.54 per share on revenue of $13.80 billion, beating EPS estimates of $0.47 while missing slightly on the $13.83 billion top-line expectations. The company will cut 11% of its workforce or up to 12,000 jobs in an effort to control costs as the slowing PC market weighs on the company’s cash cow PC/mobile CPU segment. Management expects second quarter revenue to be $13 billion-to-$14 billion, while the marked had anticipated $14.16 billion. The company also expects mid-single digit sales growth for 2016, down from the previous mid-to-high single digit sales growth guidance previously offered. The number of top funds in Intel Corporation (NASDAQ:INTC) rose by 11 to 56 at the end of December. Shares are up by 0.70% today.

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