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The Week's Best Earnings Performers: AVAV, WDAY & AVGO

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The shortened week, due to the Labor Day holiday, was still full of major news in the investment world. This included an impressive price target for Netflix (NFLX - Free Report) and more craziness from Tesla (TSLA - Free Report) and its CEO Elon Musk. But in a week short on earnings, three companies stood out.

The week of September 3 saw Nike (NKE - Free Report) grab headlines for its use of the controversial Colin Kaepernick in its new ad campaign. Meanwhile, Facebook (FB - Free Report) and Twitter (TWTR - Free Report) both saw their stock prices sink after executives from the two social media companies spoke in front of members of Congress about what they are doing to prevent the spread of misinformation—among other things.

There were also some significant earnings releases despite the fact that second-quarter earnings season is almost over. According to our Zacks Earnings Calendar, which helps investors plan out their schedules for earnings, dividend announcements, and other important financial releases, just 46 companies reported their quarterly financial results this week.

So let’s take a quick look at three of the companies that posted impressive results.

AeroVironment, Inc. (AVAV - Free Report)

AeroVironment designs, makes, and sells unmanned aircraft systems, which are better known by the more common term drone. Shares of the unmanned aircraft maker had surged about 75% in the past year before it reported its quarterly earnings results on Wednesday.

AeroVironment reported fiscal Q1 2019 revenues of $78 million, which came in above our Zacks Consensus Estimate of $75.6 million. This strong top-line performance also marked a 127% surge from the $34.4 million the firm reported in the year-ago period. Meanwhile, AVAV’s adjusted quarterly earnings skyrocketed to $0.59 per share, which crushed our $0.06 estimate—investors should note that this non-GAAP figures excludes 26 cents attributed to litigation settlement gains.

The Monrovia, California-based company saw its stock price climb over 10% after-hours following its earing release. Shares of AVAV hit a brand new all-time high of $103.98 per share on Friday. Looking ahead, AeroVironment expects full-year earnings in the range of $1.10 to $1.40 per share, with revenue coming in between $290 million and $310 million.

Workday (WDAY - Free Report)     

Workday saw its shares climb roughly 22% over the last month before it reported its second-quarter fiscal 2019 earnings results on Tuesday. WDAY’s impressive performance in the lead up was likely why its stock price slipped following its Q2 release.

The firm, which provides enterprise cloud solutions for human resources and finance, posted non-GAAP earnings of $0.31 per share. This topped our quarterly estimate that called for adjusted earnings of $0.26 and marked a 29% climb from the year-ago period.

Workday’s quarterly revenues also surged roughly 28% to $671.7 million, which topped our $663 million estimate. More specifically, the company’s subscription revenues—84% of total revenues— soared 30%. Looking ahead, our current estimate is calling for Workday’s fiscal year sales to surge by 27.4%, while its adjusted earnings are projected to climb by 20.4% to $1.24 per share.                

Broadcom (AVGO - Free Report)

Shares of Broadcom, which had been one of the worst-performing stocks among major chip companies in 2018, surged over 8% Friday after the company released its quarterly financial results Thursday. Broadcom saw its adjusted earnings jump 21.5% to reach $4.98 per share, which beat the Zacks Consensus Estimate by 15 cents.

The semiconductor company posted quarterly revenues of $5.06 billion. This marked a strong 13% jump from the $4.46 billion Broadcom reported in the year-ago quarter and came in line with our estimate. Looking ahead, the company’s full-year earnings are projected to jump 25%, while revenues are expected to climb nearly 18% to hit $20.79 billion. Broadcom’s outlook appears strong, but it will remain to be seen how soon investors can change their minds about the company’s CA Technologies acquisition.

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