In Depth

Five Stocks That Were Among Biggest Earnings Movers Last Week

Rahul Joshua
6 Feb 2024 · 5 minutes read

84% of the S&P 500 companies reported actual results so far, with 79% reporting a positive EPS surprise and 65% reporting a positive revenue surprise, according to FactSet data. The blended YoY earnings decline for the S&P 500 is -5.2%, which is better than the expected decline of 7%.

Here we look at some of the biggest movers last week in response to the release of earnings reports, while only considering the companies with a market cap of at least $4 billion

  • Vertiv Holdings (VRT:US) lifted its full-year net sales guidance after Q2 outperformance, sending its shares sharply higher. The company now sees net sales $6.71 billion to $6.91 billion, up from the prior projection for FY net sales of $6.45 billion to $6.60 billion, and the consensus of $6.55 billion.

    For this quarter, the company guided for net sales in the range of $1.7 billion to $1.8 billion, ahead of the consensus of $1.65 billion. As far as the second quarter results are concerned, the company reported an adjusted EPS of $0.46 on revenue of $1.73 billion, crushing the consensus for earnings of $0.28 on revenue of $1.61 billion. 

    Overall, shares in the data center infrastructure provider closed 37.6% higher last week. Congresswoman Susie Lee was actively trading VRT shares in recent years.

  • Arista Networks (ANET:US) offered a third-quarter forecast that topped analyst consensus despite a difficult macro environment for the IT networking sector. The company sees Q3 revenue at $1.475 billion, ahead of the average analyst estimate of $1.39 billion. 

    For its second quarter, the company reported adjusted EPS of $1.58, easily ahead of the consensus for a profit per share of $1.44. Revenue rose 38.7% YoY to $1.46 billion. The adjusted gross margin contracted by 60 basis points YoY to a still-strong 61.3%.

    Shares rose 18.9% higher last week to close at $179.60. Congressman Michael McCaul has been actively buying ANET shares in recent months, including the $100,000 - $250,000 purchase on April 05, when the stock closed at $162.86.

  • DXC Technology (DXC:US) shares sank more than 30% last week after the IT services provider reported a disappointing set of results. As a result, the company reduced its full-year outlook for profit and revenue. 

    DXC’s new FY guidance calls for EPS in the range of $3.15 - $3.40 on revenue of $13.88 billion to $14.03 billion. This represents a meaningful revision compared to the prior forecast for EPS of $3.80 - $4.05 on revenue of $14.4 billion to $14.45 billion. Organic revenue is now expected to drop 3.5% YoY, worse than the expectations for a 2.3% decline.

    For this quarter, the company sees adjusted EPS of $0.65 - $0.70 on revenue of $3.43 billion to $3.46 billion. The analyst consensus was looking for a much better forecast, namely EPS of $0.93 on revenue of $3.57 billion.

    As far as the company’s first-quarter results are concerned, DXC reported a profit per share of $0.63 on revenue of $3.45 billion, missing the analyst target for EPS of $0.83 on revenue of $3.56 billion. 

    Congressman Michael McCaul had been selling DXC shares since the end of 2021. The most recent sale occurred on May 12, when the stock closed at $22.87, which compares to Friday’s closing price of $19.32.

  • ZoomInfo (ZI:US) stock also tumbled after the IT software company lowered its full-year revenue outlook. The company now sees full-year revenue at $1.23 billion, lower than the prior projection for $1.28 billion in FY sales.

    For this quarter, the company guided for adjusted EPS of $0.24 to $0.25 on revenue of $310.5 million, worse than the consensus for EPS of $0.26 on revenue of $325.8 million.

    Second-quarter results saw revenue rise 16% YoY to $308.6 million, still below the average analyst estimate of $310.8 million. The adjusted earnings per share topped analyst consensus by $0.03. 

    In response to this set of results, ZI shares fell 28.2% last week. Congressman Ro Khanna was trading the stock throughout 2022.

  • Fortinet (FTNT:US) shares fell 26.1% last week after the cybersecurity company also slashed its revenue forecast for the full year. Fortinet now sees FY revenue of $5.4 billion, down from the prior $5.46 billion and below the consensus of $5.47 billion.

    The company also lowered its FY billings outlook to $6.54 billion from the previous $6.78 billion. For this quarter, billings are seen at $1.59 billion and revenue at $1.35 billion. Analysts were looking for $1.68 billion and $1.38 billion, respectively.

    The weak set of Q3 and FY projections comes on the back of the second-quarter weakness. The company reported billings and revenue of $1.54 billion to $1.29 billion, respectively, missing the consensus for $1.59 billion to $1.3 billion. 

    Rep. Khanna invested in Fortinet in late June, after previously trading the stock in the first couple of months of 2023.