Biggest Earnings Winners From the Past Week

October 22, 2016 by Chris Lange

The third-quarter earnings season is now underway, and there have been a few standouts, with the broad markets rising this week. Perhaps one of the biggest winners was Microsoft Corp. (NASDAQ: MSFT), which hit a new all-time high. However, we have has put together a list of the other major winners from earnings that took place this past week.

24/7 Wall St. has included some of the highlights from these earnings reports as well as the consensus price target and a recent trading history of the stock.

 

Netflix

After the markets closed on Monday, Netflix Inc. (NASDAQ: NFLX) released its most recent earnings report. The reaction to the report was incredible, with the stock surging as much as 20%. So far this year, the stock has actually traded down over 10%. This earnings report could signal the return of this streaming giant.

The company posted $0.12 in earnings per share (EPS) and $2.29 billion in revenue. Thomson Reuters had consensus estimates of $0.06 in EPS on revenue of $2.28 billion. The same period of last year reportedly had EPS of $0.07 and $2.28 billion in revenue.

During this past quarter, Netflix added 0.4 million members in the United States, versus its forecast of 0.3 million, and 3.2 million members internationally, versus 2.0 million. The overperformance was driven primarily by stronger than expected acquisition due to excitement around Netflix original content. Total net additions for the quarter was 3.57 million, making a grand total of global paid memberships of 86.74 million.

In terms of guidance for the fourth quarter, Netflix expects to have $0.13 in EPS and $2.34 billion in revenue. The consensus estimates call for $0.07 in EPS on $2.4 billion in revenue.

Shares of Netflix closed Friday at $127.50, with a consensus analyst price target of $119.44 and a 52-week trading range of $79.95 to $133.27. Over the course of the week the stock rose about 27%.

American Express

American Express Co. (NYSE: AXP) reported third-quarter financial results after markets closed on Wednesday. Many expected Amex to be hurting this quarter because this was the first period that the company reported without its Costco portfolio. However, Amex shocked investors and analysts alike blowing the earnings estimate out of the water.

The company posted $1.20 in EPS on $7.77 billion in revenue, versus consensus estimates that called for EPS of $0.96 in EPS and $7.72 billion in revenue. In the same period of last year, Amex posted $1.24 in EPS and $8.19 billion in revenue.

As for 2016 full year guidance, Amex expects EPS in the range of $5.90 to $6.00, which compares to the consensus estimate of $5.51 per share.

Shares of Amex closed Friday at $67.36, finishing the week up 12%. The consensus price target is $67.74, and the 52-week range is $50.27 to $74.97.

Harley-Davidson

When Harley-Davidson Inc. (NYSE: HOG) released its third-quarter earnings report before the markets opened on Tuesday, it posted $0.64 in EPS on $1.09 billion in revenue. The consensus estimates had called for EPS of $0.64 and $1.09 billion in revenue. In the same period of last year, the company reported $0.69 in EPS and revenue of $1.14 billion.

Revenue from motorcycles and related products was down compared to the third quarter in 2015, primarily due to decreased motorcycle shipments.

In terms of guidance, Harley-Davidson continues to expect to ship 264,000 to 269,000 motorcycles in 2016, which is roughly down 1% to up 1% from 2015. In the fourth quarter of 2016, the company expects to ship 44,200 to 49,200 motorcycles, compared to 48,149 motorcycles shipped in the year-ago period.

Shares of Harley-Davidson closed Friday at $56.37, with a consensus price target of $53.40 and a 52-week range of $36.36 to $57.33. Over the course of the week the stock rose 13%.

Domino’s Pizza

On Tuesday, Domino’s Pizza Inc. (NYSE: DPZ) reported its most recent financial results before the markets opened. The company posted $0.96 in earnings per share (EPS) and $566.7 million in revenue, compared with consensus estimates of $0.89 in EPS on revenue of $542.38 million. The same period of last year reportedly had EPS of $0.67 and $484.7 million in revenue.

The company saw its revenues rise in this quarter, primarily due to higher supply chain revenues from increased volumes and store growth. Increased domestic franchise and company-owned store revenues and higher international revenues resulting from both same-store sales and store count growth also contributed to this increase.

Shares of Domino’s closed Friday at $166.36. The stock has a consensus price target of $163.50 and a 52-week range of $100.59 to $166.51. Over the course of the week, the stock was up about 10%.

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