Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether it’s a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 👇
*Click the image to enlarge it
At the top of Thursday's list was Dover $DOV, a $25B producer of industrial equipment and components for markets like energy, packaging, and refrigeration. The company reported mixed results, but the market rewarded shareholders with a +4.60 reaction score.
In the report, they posted revenues of $2.08B, below the expected $2.11B, and earnings per share were $2.62, above the expected $2.51.
An honorable mention goes to the world's largest automobile and robotics stock, Tesla $TSLA. They delivered mixed results and had a muted reaction score.
Revenues came in at $28.09B, compared to the expected $26.54B, and earnings per share of $0.50, missing the expected $0.56.
Here are the bottom beats from the S&P 500 👇
At the bottom of Thursday's list was the $8.7B provider of Medicaid and Medicare managed health care services, Molina Healthcare $MOH. The company reported mixed results and suffered a -6.03 reaction score.
They reported revenues of $11.48B, beating the expected $10.97B, and earnings per share of $1.84, more than 50% below the expected $3.90.
Following a mixed earnings report, Roper Technologies $ROP had the second-worst reaction score of -5.13.
Revenues met the market's expectations, and EPS was a slight beat.
Now let's dive into the fundamentals and technicals 👇
TSLA has been rewarded for 5 of its last 7 earnings reports 🔥
Tesla had a +2.3% post-earnings reaction, and here's what happened:
The company delivered record quarterly results in global vehicle deliveries, energy storage deployments, total revenues, and free cash flow.
They made significant progress in AI, full self-driving, Robotaxi, and Optimus humanoid robot initiatives, with plans for rapid production expansion.
In addition to the solid report, the management team expects to unveil the Optimus V3 prototype in Q1, with production ramp targeted for late next year. This is expected to dramatically increase their top-line.
We highlighted this report in the latest Weekly Beat column, and said if the company delivers what Mr. Market wants to hear, a fresh leg higher to new all-time highs will follow.
We also noted that this time last year, the stock had its best earnings reaction in decades. Since then, the market has kept rewarding shareholders when the company hosts earnings events.
While the market initially reacted with a -5% drop, the buyers quickly stepped in and sparked a massive intraday rally. By the closing bell, the price had rallied over 35 points in an epic reversal.
After making a false start late last year, we believe it's go time for this stock, and new all-time highs are on deck.
So long as TSLA holds above 415, the path of least resistance is higher for the foreseeable future.
MOH had its worst earnings reaction since 2017 🐻
Molina Healthcare had a -17.5% post-earnings reaction, and here's what happened:
Premium revenue rose 12% year-over-year, driven by acquisitions, rate increases, and membership growth
The company completed the $350M acquisition of ConnectiCare, adding 140,000 new memberships.
Driving the selling pressure was the management team's forward guidance: full-year 2025 adjusted EPS guidance was slashed from $19 to $14.
While this wasn't a bad quarter for the top-line, the company's medical costs are surging, and it's pressuring their profitability. Mr. Market hates what they're doing.
Not only is the stock being consistently punished for its earnings reports, but this quarter's earnings reaction was the worst since 2017. In other words, the fundamental deterioration isn't slowing - it's accelerating.
The technicals are confirming this bearish trend in the fundamentals as the price is on the cusp of resolving a massive that goes back more than five years. If the bears can put the finishing touches on this top, we expect things to get much worse.
If and when MOH closes below 152, the path of least resistance will decisively shift from sideways to lower for the foreseeable future.
Happy Friday
-The Beat Team
P.S. Sean just nailed his biggest trade of the year - and you’ll never guess what he did to pull it off.
He broke it all down in yesterday’s Options Jam Session…
