It’s fair to say that this earnings season has largely been overshadowed by other big headlines about the stock market. While those stories might be fascinating, investors should not get distracted from several companies that have reported some very impressive numbers. Many of these businesses are putting up strong earnings amidst a period of economic uncertainty and are worth adding to your shopping list so that you can take advantage of any volatility in the short-term.
Below, you will find a brief overview of 3 stocks that have recently delivered impressive earnings reports. Each one of these companies has something different to offer long-term investors and is poised to have a strong 2021 and beyond.
1. ServiceNow
First, we have one of the hottest enterprise cloud software companies and a member of the S&P 500, ServiceNow (NYSE:NOW). The great thing about ServiceNow’s software-as-a-service applications is that large enterprises in all different industries can use them to improve major functions within their organizations. The company currently has over 6,900 enterprise customers that include roughly 80% of the Fortune 500. IT services are incredibly important for companies because they affect every aspect of a business. With ServiceNow’s cutting-edge enterprise software, a company can make all of its IT services more efficient and easier to manage.
With so many companies heading towards digital transformations, ServiceNow is seeing strong growth at this time. In Q4, the company reported adjusted EPS growth of 22% year-over-year to $1.17 and saw its subscription revenue increase by 32% year-over-year to $1.18 billion. ServiceNow also announced that it closed 89 transactions during Q4 with more than $1 million in net new annual contract value. The bottom line here is that this company is adding large enterprise customers to its recurring revenue base and continuously beating expectations, which makes it a stock that could be well worth adding to long-term portfolios.
2. Apple
Did Apple (NASDAQ:AAPL) just have one of the most impressive quarters ever? It’s a valid question, as the list of positives from the company’s Q1 report is a long one. The iconic technology giant joins both Walmart (NYSE:WMT) and Exxon (NYSE:XOM) Mobile as the third American company to ever report over $100 billion in revenue in a single quarter. The company reported year-over-year revenue growth of 21% to $111.4 billion and EPS of $1.68 up 35% year-over-year, both record-breaking figures for a company that consistently impresses in terms of quarterly earnings.
International sales accounted for 64% of the quarter’s revenue, which confirms that the company is seeing a lot of momentum in high-growth potential areas like China. Apple also smashed analyst estimates for iPhone revenue, which came in at $65.6 billion and tells us that consumers are still very much interested in buying new products from the company. With the launches of the iPad Air, Apple Watch Series 6, and new 5G iPhones, there’s a good chance that 2021 ends up as the best year ever for Apple. Don’t be surprised to see extended share repurchase authorization and a dividend increase in the coming months. The stock rallied up into the earnings release, so make sure to wait for a pullback before initiating any new buys.
3. Skyworks Solutions
Skyworks Solutions (NASDAQ:SWKS) is a wireless semiconductor company that is focused on radio frequency and complete cellular system solutions for mobile communications applications. Some of the company’s key products are amplifiers, attenuators, modulators, and switches that are used in technology all over the world. The stock offers an attractive way for investors to gain exposure to emerging opportunities with huge potential such as 5G, Automotive, and the Internet of Things (IoT).
The company’s Q1 FY21 earnings results were very strong, as Skyworks reported record revenue of $1.51 billion, a year-over-year increase of 69%. Skyworks also delivered Q1 GAAP Diluted EPS of $3.05 which was a 103% year-over-year increase. The stock offers a 1.25% dividend yield and the company also announced that the board of directors has approved a new $2 billion stock repurchase program, which are additional reasons why Skyworks Solutions stock is a great one to add to your shopping list.