Should Investors Be Watching These Stocks That Reported Earnings This Week?
When it comes to investing in stocks, there is no surefire way to guarantee success in the stock market. However, there are certain factors that can help increase the chances of finding successful investments. For example, investors will often look for companies with strong financials, a history of healthy growth, and a robust competitive advantage.
Additionally, it can be helpful to pay attention to market trends and sector-specific news when making investment decisions. By taking all of these factors into account, investors can improve their chances of finding the best stocks to buy today.
What Are Earnings?
An earnings report is a company’s financial statement that shows its profits and losses over a certain period of time. Companies release their earnings reports once a quarter, and they include important information such as revenue, expenses, and net income. This information helps investors understand the financial health of a company and makes earnings an important part of fundamental analysis.
When a company releases its earnings report, they will often hold a conference call to discuss the results with analysts and investors. This is an important event because it gives insight into the company’s strategy and future plans.
After the conference call, the stock price will often move based on what was said in the earnings report. If a company beats earnings estimates, its stock price will usually go up. However, if a company misses earnings estimates, its stock price will usually go down. As you can see, understanding earnings reports is essential for any investor who wants to make money in the stock market today. With that being said, let’s take a look at four stocks that reported earnings on Monday morning.
Best Stocks To Watch This Week
RPM International (NYSE: RPM)
To start us off today, let’s look at RPM International. The company manufactures, markets, and sells various specialty chemical product lines, including high-quality specialty paints, protective coatings, roofing systems, sealants, and adhesives. Shares of RPM stock are currently trading at $85.68 a share on Monday morning. This comes after the company reported its Q4 May 2022 earnings early Monday morning.
In it, RPM notched in earnings of $1.42 per share on revenue of $2.0 billion. Wall Street consensus earnings estimate was $1.44 per share on revenue of $2.0 billion. Next, the company reported its profit for the quarter increased, fueled by double-digital sales growth across the majority of its verticals. As a whole, sales grew 14% to $1.98 billion. RPM reported a net income of $199 million. Compared with $156.1 million for the same period, the previous year.
“This fourth-quarter performance was driven on the top line by all four of our segments, each of which generated record sales,” RPM Chairman and Chief Executive Frank Sullivan noted. “Better materials availability was largely due to our well-timed acquisition last fall of a production facility in Texas, which is now making alkyd resins that are critical to many of the segment’s products.” With that in mind, is RPM International worth adding to your watchlist for this week?
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Dorman Products Inc. (NASDAQ: DORM)
Next up, we have Dorman Products Inc. or DORM. The company is a supplier of replacement parts and fasteners for passenger cars, light trucks, and heavy-duty trucks in the automotive aftermarket. DORM stock is down 3.25% at $112.96 per share early Monday morning. This comes following the company reporting its second-quarter 2022 results.
In detail, Dorman Products (DORM) reported earnings per share of $1.29 on revenue of $417.4 million. For context, Wall Street’s consensus earnings estimate was $1.29 per share on revenue of $401.4 million. Actually, they posted a record quarter in net sales. This represents an increase of 34%. Compared to $310.6 during the same quarter a year prior. Also, gross profit was reported at $141.5 million, or 33.9% of net sales, compared to $110.1 million, or 35.5% of net sales for the same quarter in 2021.
“I am pleased to report we had another strong quarter and would like to thank all our Contributors for their tireless efforts in driving our continued success. Our performance in the quarter was driven by record net sales, as we saw double-digit organic sales growth year over year, and 4% sequential total net sales growth compared to the first quarter of 2022. Demand for our products remained strong throughout the quarter with solid orders across all of our customer channels,” stated Kevin Olsen, Dorman’s President, and Chief Executive Officer stated,” Moving along, does DORM stock deserve a spot on your watchlist today?
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SquareSpace Inc. (NYSE: SQSP)
Moving on, we have SquareSpace, Inc. Or SQSP. For the uninitiated, SquareSpace provides an all-in-one website building and e-commerce platform. The company allows customers to sell everything and anything. The company currently provides customers in over 200 countries and territories globally with all the tools they need to sell physical products, digital content, classes, appointments, reservations, and much more. Moving along, SQSP stock is in the headlines this morning after the company reported its second quarter 2022 fiscal earning results. Shares of SQSP are down 3.36% early Monday morning.
Despite this, the company posted a 9% year-over-year increase in revenues of $212.7 million. This is being overshadowed by the fact that the company lowered its full-year revenue guidance for fiscal 2022. Aside from that, the company noted earnings of $0.45 per share on revenue of $212.7 million. The consensus earnings estimate on the street was $0.15 per share on revenue of $212.0 million. Squarespace said in its earnings report that it anticipates revenue in a range of $857 million to $867 million for the full 2022 fiscal year. In the previous quarterly earnings report, the company reported its expected revenue for the full 2022 fiscal year to be between the range of $867 million to $879 million.
“Squarespace achieved $213 million in revenue, growing 12% year over year in constant currency,” stated Anthony Casalena, Founder & CEO of Squarespace. “We continue to track well against our product roadmap as we seek to bring more value to our millions of customers worldwide. Our recent launch of Fluid Engine, a core enhancement to our page building experience, represents a major step forward in no-code web design for professionals and beginners and we are excited it is now available to customers globally.” With that, is SQSP a top stock to watch at its current valuation?
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Infosys Technologies Ltd. (NYSE: INFY)
Last on the list, we have Infosys Technologies. The company provides end-to-end business solutions, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation, and infrastructure management services. On early Monday morning, INFY reported its Q1 fiscal 2023 earnings. As a result, shares of INFY stock are trading lower Monday morning a modest 2.86% at $18.34 a share.
The company missed on earnings. But they beat revenue estimates. They reported earnings of $0.16 per share on revenue of $4.4 billion. The consensus earnings expectation was $0.18 per share on revenue of $4.4 billion. However, INFY did raise its outlook for fiscal 2023. Now, INFY expects annual revenues to increase between 14% and 16% year-over-year. In comparison to the previous projections of 13% and 15%.
“Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organization, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition,” stated Salil Parekh, CEO, and MD. Considering all this, is INFY a top stock to add to your radar?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.