Four Earnings Beats, Four Stocks Making A Morning Move

Four companies have reported their latest quarterly earnings since yesterday’s market close, and all four managed to top estimates, sending their shares up in morning trading. The results are a positive development for the market, as analysts have otherwise been predicting a rather gloomy earnings season. Let’s dig into the results and see what has investors pleasantly surprised by these companies.

General Motors Company (NYSE:GM), showroom, car, Cadillac

TonyV3112 /

The Boeing Company (NYSE:BA) is up by a little more than 2% today after reporting its third quarter earnings and providing positive guidance for fiscal year 2015. Revenue came in well ahead of estimates at $25.85 billion, buoyed by a 7% increase in commercial deliveries to a record 199. Earnings per share also came in well ahead of estimates at $2.52, a beat of $0.30. In addition, The Boeing Company (NYSE:BA) upgraded its earnings guidance for 2015 to a range of $7.95-to-$8.15 from a previous guidance range of $7.70-to-$7.90. One of the most popular aerospace and defense stocks, The Boeing Company (NYSE:BA) was in the portfolios of 44 of the elite investors that we track as of June 30.

Follow Boeing Co (NYSE:BA)

Whether elite hedge funds collectively like a stock or not is an important metric to consider, as these large investors show a great level of skill and expertise when it comes to picking stocks. Over the last few years equity hedge funds have trailed the market by a large margin, but that’s mostly due to their hedging and short positions, which perform poorly in a bull market. Their long positions performed far better, especially their small-cap picks, which have the potential to beat the market by 95 basis points per month on average, as our backtests showed. Our small-cap strategy involves imitating a portfolio of the 15 most popular small-cap picks among hedge funds and it has returned 102% since August 2012, beating the S&P 500 ETF (SPY) by over 53 percentage points (read more details here).

Let’s move on to Baker Hughes Incorporated (NYSE:BHI), which is in the midst of being acquired by Halliburton Company (NYSE:HAL). Shares are up by over 1% despite the oil field services company reporting weak third quarter results. Revenue fell by 39% year-over-year to $3.79 billion, while the company registered a loss of $0.36 (or an adjusted loss of $0.05 per share) compared to a profit of $0.86 per share a year ago. Nonetheless, the rough times were not unexpected given its exposure to the U.S oil industry, where there’s been a broad pullback in terms of operations, as analysts had predicted a greater adjusted loss of $0.14 per share. Activist investor Jeffrey Ubben of ValueAct Capital, a supporter of the merger, recently filed an amended 13D related to his Baker Hughes Incorporated (NYSE:BHI) position in which he claimed that he intended to have discussions with the company regarding ways to increase shareholder value. Ubben continues to hold a 23.25 million-share stake in Baker Hughes Incorporated (NYSE:BHI) as of October 1.

Follow Baker Hughes A Ge Co Llc (NYSE:BHI)

We have the earnings reports of two more companies to get to, including a major auto manufacturer, which we’ll do on the following page.