The earnings calendar is jam-packed this week with big results from Facebook (Nasdaq: FB) and Under Armour (NYSE: UA) most recently, and results are helping the Standard & Poor's 500 Index hit record highs.
S&P 500 companies are beating on earnings per share (EPS) and revenue at a rate not seen in years. The index components that have reported are beating revenue consensus estimates by 1.43% on average, according to FactSet. That's handily above the 0.57% that exceeded revenue estimates, on average, over the last 16 quarters.
Earnings dominate today's (Thursday) hot stocks list, and some are sizzling hot numbers.
FB, UA Top Hot Stocks to Watch - Plus 10 More
Facebook Inc. (Nasdaq: FB) kicks off today's hot stocks list. The social network giant reported Q2 earnings Wednesday after the close that trounced estimates. FB's Q2 EPS of $0.42 were up 121% year over year (YOY). Revenue rose 61% YOY. Mobile advertising revenue grew 151% and now represents 62% of FB's overall advertising revenue.
While much has been made of FB's massive 1.3 billion member count, Facebook is actually much bigger than that. Across its flagship properties, which include Instagram, WhatsApp, and Messenger, Facebook's total user tally is a whopping 2.2 billion, according to data from Business Insider.
The Facebook stock price has climbed 177% over the past year, making FB the S&P 500's best performer. Analysts remain upbeat and several hiked price targets to $90, which CNBC Jim Cramer says is "absolutely possible."
Industry experts see promise in FB's major push into premium video advertising. JMP Securities analyst Ron Josey succinctly summed up the impressive quarter, saying, "Facebook is firing on all cylinders."
FB stock rose some 7% to an all-time high of $76.74 intraday, is up 39% year to date, and is up more than 100% from its IPO price of $38. Facebook's current market cap of $195 billion is now greater than Amazon's, Merck's, and Pfizer's.
Under Armour Inc. (NYSE: UA) shares soared 15% to a 52-week high of $69.74 following a stellar second quarter and rosy forward guidance. The apparel and footwear maker reported a profit of $17.7 million, up from $17.6 million YOY. On a per-share basis, earnings were flat at $0.08. But, revenue jumped 34% to $609.7 million. Both numbers beat analyst expectations of EPS of $0.07 on revenue of $571.4 million. UA raised its outlook for full-year sales, citing increased visibility and growth in footwear and international sales during the first half of the year. For FY2014, the company expects revenue of $2.98 billion to $3.0 billion, compared with prior forecasts of $2.88 billion to $2.91 billion.
Amazon.com Inc. (Nasdaq: AMZN) shares rose 2% to $364.85 in morning trading. The world's largest online retailer reports Q2 numbers after today's close. Consensus estimates are for an EPS loss of $0.15 on revenue of $19.34 billion, according to Thomson Reuters. That revenue amount would mark a 23% increase YOY. Over the last decade, Amazon has a history of beating EPS estimates just slightly more than it misses. And, the stock is very volatile after earnings days, averaging a 9.5% move either way, according to Bespoke. The company has reported revenue beats at a greater rate of 66.8%, versus the 56.4% beats on earnings per share.
For nine more stocks making big moves today, keep reading...
Ford Motor Co. (NYSE: F) shares rose 1.5% to a 52-week high of $18.12 after reporting its 20th consecutive profitable quarter, as well as its best quarter since Q2 2011. The automaker posted EPS of $0.40 on $2.6 billion in revenue. Analysts had forecast EPS of $0.36. Ford recorded its best-ever North American profit in Q2 of $2.44 billion. JP Morgan auto analyst Ryan Brinkman said Ford's North America result "is all the more impressive considering the company's most important product - the F-150 pickup truck - is approaching the end of its current product cycle." Brinkman also noted Ford's "surprise profit" in Europe, the first in three years.
Gilead Sciences Inc. (Nasdaq: GILD) shares rose better than 1% to a 52-week high of $92.97 after announcing adjusted earnings of $3.93 billion, a 368% YOY increase. EPS came in at $2.36, up 372% YOY, and easily beating the expected $1.79 by $0.57. Driving GILD's strong quarter was its blockbuster $1,000-per-pill drug, Sovaldi. Used to treat hepatitis C, the drug faced a lot of skepticism when it was launched last year - given its hefty price tag. Sovaldi made up 53%, or $3.48 billion, of GILD's Q2 sales, handily beating estimates of $2.87 billion. The drug has been prescribed to 80,000 people due to its effectiveness and lack of side effects.
Eli Lilly and Co. (NYSE: LLY) climbed 1% to a 52-week high of $65.70 after topping EPS estimates by $0.03. The pharmaceutical giant posted Q2 EPS of $0.68 on revenue of $4.94 billion. Wall Street was looking for EPS of $0.65 on revenue of $4.88 billion. The Indianapolis drugmaker's sales and earnings have suffered since late 2011, when its top-selling Zyprexa schizophrenia drug lost U.S. patent protection and faced competition from cheaper generics. Yet amid the recent urge to merge, Lilly vows to remain independent and rely on its own product lineup to get back on track.
Organovo Holdings Inc. (NYSEMKT: ONVO) shares soared 11% to $8.84 on heavy volume. The San Diego, Calif.-based development stage company just disclosed that it has entered into an agreement with Janssen Research and Development, a unit of Johnson and Johnson (NYSE: JNJ), to evaluate the use of 3D bio-printed tissue in a drug discovery setting.
Verizon Communications Inc. (NYSE: VZ) rose 1% to $51.45 after FBR Capital raised its rating on the stock to "Outperform" from "Market Perform" with a $57 price target.
EMC Corp. (NYSE: EMC) added 1% to $28.94 after a pair of positive analyst actions. Needham hiked its price on the tech company from $30 to $32. BMO Capital Markets reiterated its "Outperform" rating on the stock and boosted its priced target from $29 to $32. "We suspect EMC's announced increase of buybacks from $2 billion to $3 billion in 2014 is an opening move, not an end move," BMO wrote. "With around $9 billion in net cash (including VMW's cash) and around $6 billion in FCF generating capability, we believe that EMC could take on more debt and meaningfully reduce its share count, in the absence of spinning or selling VMW."
3M Co. (NYSE: MMM) shares climbed 1% to a 52-week high of $146.63 after a solid Q2 earnings report. The conglomerate posted EPS of $1.91 on revenue of $8.13 billion. Those were YOY gains of 11.7% and 4.8% respectively. EPS were in line with forecasts, while revenue beat expectations by $40 million. 3M expects full-year EPS to be $7.30 to 7.55 and organic sales growth from the United States to increase by a factor of 3% to 6%.
PepsiCo Inc. (NYSE: PEP) shares popped 1.5% to $92.34 after Stifel upgraded the beverage and snack giant from "Hold" to "Buy." The firm said Pepsi is entering a period of positive earnings revision. Thursday's gains follow a 1.65% rise logged Wednesday after the company raised its full-year earnings forecast. Pepsi believes its new Lay's potato chips (including a cappuccino variety) should help boost profits in the coming months.
Royal Caribbean Cruises Ltd. (NYSE: RCL) shares reached a 52-week high of $61.36, up 9%, after its Q2 profit surged fivefold thanks to strong bookings and lower costs. The Miami-based company said profit increased to $137.7 million, or $0.62 per share, up from $24.7 million, or $0.11 per share, in the same quarter a year earlier. The cruise line operator also raised its Q3 and FY2014 outlook.
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