By Wayne Duggan
Second-quarter earnings season is winding down, but it has been a record quarter up to this point. In fact, 87% of S&P 500 companies have reported Q2 earnings and revenue ahead of analyst estimates, the highest percentage of revenue beats in a single quarter dating back to at least 2008, according to FactSet.
Second-quarter earnings season has been extremely bullish overall, but there were also a handful of dud quarters mixed in as well. Here’s a look at the biggest winners and losers in the S&P 500 this earnings season.
Winner: Nucor (NYSE: NUE)
On July 22, Nucor reported a record 2nd-quarter adjusted earnings per share of $5.04, up from just $0.36 1 year ago and above analyst estimates of $4.81. Second-quarter revenue was $8.79 billion, up 103% from 1 year ago. Revenue also far surpassed analyst estimates of $8.33 billion. Nucor management also said the company is expecting another record quarter of earnings in the 3rd quarter, driven by high steel prices and margins. Nucor investors got plenty of good news in the report, and it’s no surprise Nucor shares are up 26% since it was released.
Loser: Las Vegas Sands (NYSE: LVS)
On July 21, casino operator Las Vegas Sands reported an adjusted 2nd-quarter EPS loss of $0.26, worse than the $0.19 loss analysts had expected. Second-quarter revenue of $1.17 billion also fell short of analysts’ $1.39 billion forecast. Revenue was up 1,791% from pandemic levels 1 year ago but remains down 64.8% from the pre-pandemic 2nd quarter of 2019. To make matters worse, a breakout of the delta variant of COVID-19 in China led to a 2-week shutdown in gambling hub Macau, which will certainly weigh on Las Vegas Sands’ 3rd-quarter numbers as well. Sands stock is down 21% since its earnings report.
Winner: Advanced Micro Devices (NASDAQ: AMD)
On July 27, chipmaker Advanced Micro Devices reported second-quarter adjusted EPS of 63 cents on $3.85 billion in revenue. Both numbers topped analyst estimates of $0.54 and $3.62 billion, respectively. Revenue was up 99% from 1 year ago. Management also guided for 3rd-quarter revenue of about $4.1 billion, up 46% year-over-year and ahead of analyst estimates of $3.82 billion. There’s clearly a lot to like about a quarter in which revenue and operating margin doubled and profitability more than tripled from 1 year ago. AMD shares are up 14% since the report was released.
Loser: Robinhood (NASDAQ: HOOD)
Popular trading app Robinhood released its first quarterly earnings report as a public company on August 18, and the result wasn’t what investors had hoped. Despite massive revenue growth, Robinhood reported a 2nd-quarter adjusted EPS loss of $2.16, far worse than the $0.15 loss analysts were expecting. The good news for Robinhood investors is that revenue was up 131% to $565 million, surpassing analyst estimates of $521.8 million. However, the company said it expects a significant slowdown in trading activity in the 3rd quarter resulting in “lower revenues and considerably fewer new funded accounts” than in the 2nd quarter. The disappointing guidance sent Robinhood shares lower by 13% in just 2 trading days.
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