Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

3 Stocks That Soared This Earnings Season

By Daniel Sparks - Nov 15, 2019 at 7:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Don't miss the stories behind these companies' soaring stock prices.

As usual, earnings season brought with it its fair share of surprises and volatility. But three stories, in particular, are worth a closer look. Tesla ( TSLA 1.64% ), Apple ( AAPL 2.28% ), and Walt Disney ( DIS 1.68% ) have all seen their stocks soar this season as their quarterly performances surpassed expectations.

Here's a look at these companies' latest results -- and why investors have been bullish on their stocks.

A white Model X with its falcon-wing doors open

The Model X. Image source: Tesla.

Tesla

Shares of electric-car company Tesla have skyrocketed in the weeks since the company's third-quarter earnings report. The stock has risen more than 38% since the quarterly update was posted on Oct. 23, helped by a 29% gain in the two days following the release.

Investors were impressed with the company's non-GAAP (adjusted) earnings per share of $1.86. This was much better than analysts' average forecast for a loss per share of $0.42.

With management once again reiterating in the quarterly update that its business has scaled to the point of being self-funding, the market's confidence in the company's growth story is improving.

Apple

Tech company Apple not only beat analyst expectations for its fiscal fourth quarter, but also provided better-than-expected guidance for its important holiday period.

The strong results were helped by an acceleration in the growth rates of the company's two fastest-growing segments: services, and wearables, home, and accessories. Revenue in these two segments jumped 18% and 54%, respectively, year over year.

Highlighting management's optimism for its business, the midpoint of Apple's revenue guidance range for its first quarter of fiscal 2020 implied 4% revenue growth. This would mark an acceleration from 2% growth in the fourth quarter of fiscal 2019.

Apple stock is up more than 8% since its earnings report late last month.

Walt Disney

Shares of Disney also popped following the company's earnings report earlier this month. The market was impressed with the company's better-than-expected adjusted earnings per share of $1.07. On average, analysts had forecast earnings per share of $0.95 for the period.

But the stock got another boost more recently when Disney announced that its new streaming service, Disney+, garnered over 10 million subscribers by Nov. 13 -- one day after its launch. The new service's momentum bodes well for Disney's ongoing efforts to beef up its direct-to-consumer positioning and become less reliant on traditional television.

Shares of Disney are up more than 10% since the company reported its fiscal fourth-quarter results on Nov. 7.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$175.08 (2.28%) $3.90
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$153.34 (1.68%) $2.53
Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$1,068.96 (1.64%) $17.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
652%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.