Here are the 2 Winners and 2 Losers from Q2 Earnings Season

August 27, 2021

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.

Active Trading with Lightspeed
Lightspeed provides professional traders with all the tools required to help them find success in stock trading, and we have been developing and honing our active trader platform to offer an optimal user experience. With the intuitive interface layouts and institutional quality stock and options scanners, we aim to help traders reach their goals, no matter what their strategy is. We also offer our clients some of the lowest trading fees in the industry.

For more information on a professional trading platform with Lightspeed, please call us at 1-888-577-3123, request a demo, or to open an account.

Lightspeed Financial Services Group LLC is not affiliated with these
third-party market commentators/educators or service providers. Data,
information, and material (“content”) are provided for informational and
educational purposes only. This content neither is, nor should be construed as
an offer, solicitation, or recommendation to buy or sell any securities or
contracts. Any investment decisions made by the user through the use of such
content is solely based on the users independent analysis taking into
consideration your financial circumstances, investment objectives, and risk
tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor
recommend any of the services or commentary provided by any of the market
commentators/educators or service providers and any information used to execute
any trading strategies are solely based on the independent analysis of the user.

You may also be interested in…

Source: https://www.lightspeed.com/active-trading-blog/here-are-the-2-winners-and-2-losers-from-q2-earnings-season/