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3 Buy-Rated Companies Posting Record Sales

Earnings season is slowly grinding to a halt, with a wide variety of companies already delivering their quarterly results. The period has helped keep market sentiment positive, once again squashing any concerns over an earnings meltdown.

Throughout the period, several companies, including Arista Networks ANET, Netflix NFLX, and DICK’s Sporting Goods DKS, have positively surprised investors, reporting record quarterly sales.

In addition to solid quarterly results, all three sport a favorable Zacks Rank, reflecting positive outlooks among analysts. Let’s take a closer look at each.

Arista Networks

Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The stock is a solid consideration for those seeking AI exposure, currently sporting a Zacks Rank #1 (Strong Buy) with earnings expectations higher across the board.

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The outlook for its current fiscal year is particularly bullish, up 24% over the last year to $7.92 per share and suggesting a 14% year-over-year climb.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Concerning its latest release, ANET posted EPS of $1.99 and reported sales of $1.6 billion, reflecting growth rates of 40% and 16%, respectively. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Shares have been red-hot, gaining nearly 30% just over the last month.

Netflix

Streaming giant Netflix posted a 17% beat relative to the Zacks Consensus EPS estimate and posted sales modestly ahead of the consensus, reflecting growth rates of 83% and 15%, respectively.

Strong revenue growth was driven by a 16% year-over-year subscriber gain as the company’s password crackdown continues to show benefits.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Earnings expectations jumped higher following the release, with the stock sporting the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

The company’s growth outlook remains bright, with consensus expectations for its current fiscal year suggesting 52% earnings growth on 15% higher sales. The stock sports a Style Score of ‘A’ for Growth.

DICK’s Sporting Goods

DICK'S Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment. The company recently generated a record $3.9 billion in sales throughout its latest period, up 8% year-over-year.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Undoubtedly to the likes of shareholders, the company also unveiled a 10% boost to its dividend payout in its earnings release, bringing the quarterly total to $1.10/share. Shares currently yield 2.3% annually, well above the Zacks Retail sector average of 0.9%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Bottom Line

We’re through the thick of the Q1 earnings cycle, undoubtedly a hectic period as always. The period has primarily been positive, boosted by the results of several technology players.

And concerning record-breaking releases, all three companies above – Arista Networks ANET, Netflix NFLX, and DICK’s Sporting Goods DKS – posted record sales, with each also sporting a favorable Zacks Rank.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report

DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

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Zacks Investment Research