5 US Growth Stocks That Reported Higher Revenue and Profits

Growth stocks are a great addition to any investment portfolio.

The increase in their profits and cash flows translates into steady share price appreciation, netting investors a satisfying capital gain.

By including growth stocks within your portfolio, you can accelerate its growth and bring yourself closer to your retirement goals.

The US market is a useful source to start looking for sturdy growth stocks that you can keep over years or even decades.

We shine the spotlight on five stocks that announced higher revenue and profits.

Netflix (NASDAQ: NFLX)

Netflix is the market leader in streaming television and has a broad slate of movies and TV series that it delivers to its subscribers.

For the first quarter of 2024 (1Q 2024), the company saw revenue rise 14.8% year on year to US$9.4 billion.

Operating profit climbed 53.6% year on year to US$2.6 billion while net profit jumped 78.7% year on year to US$2.3 billion.

Netflix also generated a positive free cash flow of US$2.1 billion for the quarter, in line with what it generated in the prior year.

Its paid membership base grew by 16% year on year to hit 269.6 million and saw a more than nine million addition compared to the fourth quarter of 2023.

Management notes that Netflix’s share of TV viewing is less than 10% in every country so there is more room to continue growing its market share.

The plan is to introduce live events into its slate such as comedy, sports, and competition shows to increase the breadth of its shows and attract more members to sign up.

Marriott International (NASDAQ: MAR)

Marriott is a hotel chain with a portfolio of nearly 8,800 properties across 130 brands in 139 countries and territories.

Total revenue for 2023 increased by 14% year on year to US$23.7 billion, boosted by the surge in demand for tourism and air travel as borders reopened fully.

Operating profit increased by 12% year on year as operating expenses went up by 15% year on year.

For Marriott’s net profit, it jumped 31% year on year to US$3.1 billion for 2023.

The hotel chain also paid out a quarterly dividend of US$0.52 per share.

Management is expecting worldwide revenue for 2024 to increase by 3% to 5% year on year with net room growth coming in between 5.5% to 6%.

Earlier this year, Marriott International announced a strategic cooperation agreement with Delonix Group, a leading China-based hospitality company, to grow Marriott’s Tribute portfolio in mainland China.

Both parties believe that at least 100 properties could become part of the Tribute portfolio in the coming years.

Skechers (NYSE: SKX)

Skechers designs, develops and markets a range of lifestyle and performance footwear, apparel and accessories for men and women.

Sales for 2023 increased by 7.5% year on year to US$8 billion with operating profit jumping 43.6% year on year to US$784.8 million.

Net profit surged by 46.3% year on year to US$545.8 million.

The business also generated a positive free cash flow for 2023 at US$907.4 million, reversing the negative free cash flow in 2022.

Skechers reported that its direct-to-consumer sales increased by 24.3% year on year for 2023.

The company also increased its total store count from 4,537 in 2022 to 5,168 in 2023.

Earlier this month, Skechers also signed up former Cardinals and Angels star Albert Pujols as its latest brand ambassador.

He will star in Spanish-language campaigns to educate fans about easy-to-wear and comfortable Skechers Hands-Free Slip-ins.

Cheesecake Factory (NASDAQ: CAKE)

Cheesecake Factory owns and operates 334 restaurants in the US and Canada under brands such as The Cheesecake Factory, Flower Child, and North Italia.

Internationally, the company has 33 restaurants operating under licensing arrangements.

For 2023, Cheesecake Factory reported a 4.1% year on year increase in revenue to US$3.4 billion.

Operating profit more than doubled year on year from US$38.9 million to US$108.6 million while net profit shot up 135% year on year to US$101.4 million.

The confectionery chain also generated a positive free cash flow of US$65.2 million, 33.6% higher than the US$48.8 million a year ago.

A quarterly dividend of US$0.27 per share was also paid out, similar to the previous quarter.

A total of nine new restaurants were opened in the US and Canada during 2023 while two opened internationally under licensing agreements in China and Thailand.

Stryker (NYSE: SYK)

Stryker is a medical technology company offering products and services in Medical Surgery, Neurotechnology, Orthopaedics, and Spine to help improve patient outcomes.

Sales for 2023 increased by 11.1% year on year to US$20.5 billion.

Operating profit crept up 5% year on year to US$9.2 billion while net profit climbed 34.2% year on year to US$3.2 billion.

Stryker also generated a positive free cash flow of US$3.1 billion, 54% higher than the US$2 billion churned out a year ago.

A quarterly dividend of US$0.80 was paid, up from the US$0.75 declared in the previous year.

Management expects 2024’s organic sales growth to be in the range of 7.5% to 9% year on year.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

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