UPS, Moneygram, Bloomin’ Brands and Two Other Stocks Trending on Latest Earnings Results

The major indexes have dipped on Friday morning following a report from the Commerce Department, which showed a GDP growth of 1.2% in the second quarter, well below the estimates of 2.6%.

Meanwhile, investors are paying close attention to the second quarter performance of several companies today, including Armstrong World Industries Inc (NYSE:AWI), Ventas, Inc. (NYSE:VTR), Bloomin’ Brands Inc (NASDAQ:BLMN), Moneygram International Inc (NASDAQ:MGI), and United Parcel Service, Inc. (NYSE:UPS). Let’s find out if these companies outpaced the market during the quarter and analyze hedge fund sentiment towards them.

Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).

Armstrong World Industries Tops Second Quarter Estimates

Investors are watching Armstrong World Industries Inc (NYSE:AWI) after the company topped analysts’ estimates with its second quarter results. The Pennsylvania-based manufacturing company earned $0.56 per share, topping estimates by $0.05, while its revenue came in at $314.3 million, higher than the anticipated $311.65 million. The company also said its Board of Directors had authorized a stock repurchase program worth up to $150 million. Armstrong World’s CEO Vic Grizzle said that the repurchase program shows the confidence of the Board in the strength of the company’s business, free cash flows, long-term strategy, and prospects for growth. A total of 36 funds in our database were bullish on Armstrong World Industries Inc (NYSE:AWI) at the end of the first quarter, up from 31 funds a quarter earlier.

Ventas Posts Earnings

Ventas, Inc. (NYSE:VTR)’s stock is trading in the green this morning after the company posted second-quarter FFO of $1.04 per share and revenue $848.40 million, both in line with analysts’ estimates. For the full year, the Illinois-based REIT expects FFO between $4.05 and $4.13 per share, compared to estimates of $4.15. Ventas CEO, Debra A. Cafaro, said in a statement that the company continued to grow its “excellent” balance sheet by acquiring Wexford Science & Technology’s life science and medical real estate assets during the quarter for $1.5 billion. At the end of the first quarter, 17 funds tracked by Insider Monkey were long Ventas, Inc. (NYSE:VTR).

On the next page we’ll discuss Bloomin’ Brands, MoneyGram and United Parcel Service.

Bloomin’ Brands Sees $9.2 Million Loss in Q2

Bloomin’ Brands Inc (NASDAQ:BLMN)’s stock is trending today after the company reported a loss of $9.2 million for the second quarter. Its adjusted EPS amounted to $0.30, in-line with the analyst estimates, while revenue of $1.08 billion missed the consensus estimate of $1.09 billion. The dining restaurant chain also reported a 2.3% decline in comparable restaurant sales for the quarter. For the full year, the company expects to earn $1.35 per share. Charles Paquelet’s Skylands Capital is one of 24 funds from our database that owned shares of Bloomin’ Brands Inc (NASDAQ:BLMN) at the end of the first quarter.

Moneygram International Misses Estimates

Moneygram International Inc (NASDAQ:MGI) is in the spotlight after the company missed second-quarter estimates. The Dallas, Texas-based money transfer company posted EPS of $0.15, lower than estimates of $0.21 and its revenue of $383.7 million missed analysts’ expectations of $389.16 million. For full fiscal 2016, the company now expects revenue growth of 7% to 9% on a constant currency basis. MoneyGram’s CEO, Alex Holmes, said that the company’s top-line performance was affected by geopolitical uncertainties in several countries. David Abrams’ Abrams Capital Management owns 5.1 million shares of Moneygram International Inc (NASDAQ:MGI) as of the end of the first quarter.

UPS Posts Strong Revenue Growth

United Parcel Service, Inc. (NYSE:UPS)’s stock inched down after the company released second-quarter results with revenue of $14.63 billion missing the estimates of $14.65 billion. Nevertheless, the company earned $1.43 a share, in-line with analysts’ estimates and it showed strong revenue growth due to a solid output from its domestic and international package divisions. UPS also reaffirmed its full 2016 EPS guidance of $5.70 to $5.90. Among the funds tracked by us, 36 funds held stakes in United Parcel Service, Inc. (NYSE:UPS) at the end of March.

Disclosure: None