Earnings continue to be a significant driver of the impressive price performance we’ve seen thus far this year. A strong earnings beat and raised forward guidance (known as a “beat and raise”) continues to send various companies’ stock prices skyward. For example, Nvidia (NASDAQ:NVDA) stock surged 26% after impressive earnings, while Intel (NASDAQ:INTC) stock plummeted following its largest quarterly loss.
For investors who are managing their own portfolio, staying on top of earnings results of companies whose stocks they own is critically important. Successful investors typically hold stocks of profitable companies that consistently surpass earnings expectations and sustain growth. Here are three stocks you must watch due to their impressive recent performances.
| ADBE | Adobe | $484.72 |
| C | Citigroup | $46.02 |
| ORCL | Oracle | $118.64 |
Adobe (ADBE)
Software developer Adobe (NASDAQ:ADBE) knocked it out of the park with its recent earnings. The company responsible for popular products like Photoshop, Illustrator, and PDFs exceeded Wall Street expectations with 10% year-over-year revenue growth in its fiscal second quarter, reaching $4.82 billion. Earnings per share came in at $3.91, beating analysts’ expectations for $3.79.
Adobe also announced that it generated cash flows of $2.14 billion during its latest quarter, up 5% from a year earlier. The company raised its guidance for the current fiscal third quarter, anticipating revenue between $4.83 billion and $4.87 billion. This amounts to approximately 10% year-over-year growth.
Earnings per share are forecast to come in between $3.95 and $4.00 per share, which would be annualized growth of 16% to 18%.
The company’s new guidance exceeded Wall Street’s expectations of $4.86 billion in revenue and $3.89 in earnings per share. If there’s an economic slowdown taking place, someone forgot to tell Adobe. So far this year, ADBE stock has gained 42%.
Citigroup (C)
Despite regional bank failures, larger financial institutions like Citigroup (NYSE:C) have remained resilient in the face of inflation and high interest rates. The lender reported first quarter earnings that handily beat Wall Street consensus expectations, on both the top- and bottom-lines. The lender reported Q1 revenue of $21.45 billion, which trounced forecasts for $19.99 billion, according to Refinitiv data.
Citigroup’s Q1 earnings per share of $2.19 also trounced analysts’ views. Citigroup’s outperformance appears to be tied to personal banking revenue growth, which was up 18% year-over-year in the first quarter, due to elevated interest rates. Citigroup also reported over $1 trillion in deposits, and expressed confidence in navigating future challenges. This year, C stock is up 4%.
Oracle (ORCL)
Oracle’s (NYSE:ORCL) latest earnings were so good that it has many analysts and investors asking if the computer technology company is experiencing a renaissance. ORCL stock surged over 5% on strong earnings that exceeded Wall Street expectations. Oracle reported fiscal fourth quarter earnings of $1.67 per share compared to the $1.58 that had been expected by analysts.
The company’s revenue in the quarter rose 17% year-over-year to $13.84 billion, versus the $13.74 billion that had been anticipated. The company’s cloud services and license support unit drove revenue growth of 23% to $9.37 billion in the quarter ended March 31. Furthermore, the company raised its guidance, expecting first-quarter earnings of $1.12 to $1.16 per share and 8% to 10% revenue growth.
Oracle also announced plans to develop its own generative A.I. cloud service. ORCL stock is up 45% year-to-date.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
