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 itβs 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 π
*Click the image to enlarge it
At the top of Wednesday's list was Amgen $AMGN, the world's seventh-largest pharma stock. The company beat expectations, and the market rewarded shareholders with a +4.13 reaction score.
In the report, they posted revenues of $9.56B, above the expected $8.97B, and earnings per share were $5.64, above the expected $5.02.
An honorable mention goes to Advanced Micro Devices $AMD, the world's fourth-largest semiconductor stock. They beat headline expectations and had a slightly positive reaction score.
Revenues came in at $9.25B, compared to the expected $8.76B, and earnings per share beat by 3 cents.
Here are the bottom beats from the S&P 500 π
At the bottom of Wednesday's list was the $17B provider of orthopedic implants and surgical devices, Zimmer Biomet $ZBH. The company had mixed headline results and suffered a -8.88 reaction score.
They reported revenues of $2.00B, slightly below the expected $2.01B, and earnings per share of $1.90, above the expected $1.87.
The second-worst beat came from the $31B entertainment stock, Live Nation Entertainment $LYV. They missed expectations across the board, with a -5.56 reaction score.
In the report, they posted revenues of $8.50B, above the expected $8.57B, and earnings per share were $0.73, well below the expected $1.32.
Now let's dive into the fundamentals and technicals π
AMD snapped a four quarter beatdown streak π₯
Advanced Micro Devices had a +2.5% post-earnings reaction, and here's what happened:
The top line hit a new all-time high, growing by 36% year-over-year. New AI deals with companies like OpenAI and Oracle drove this surge in revenue.
Even more impressive, the bottom line increased by 60% year-over-year as margins expanded.
As the cherry on top, the management team issued better-than-expected forward guidance.
We highlighted this company in the latest Weekly Beat column, noting that despite strong fundamental performance over the past few years, the market has consistently punished shareholders for the earnings events.
This quarter was different...
The company reported an incredible quarter, and the stock had its first positive earnings reaction in a year.
And with the price in a high and tight bullish continuation pattern, we believe a fresh leg higher is around the corner.
We expect AMD to continue trending higher for the foreseeable future.
ZBH had its worst earnings reaction ever π»
Zimmer Biomet had a -15.2% post-earnings reaction, and here's what happened:
The top and bottom lines increased year-over-year by 9.7% and 9.2%, respectively.
They launched new products in knees, hips, and robotics, all of which performed better-than-expected.
The management team's forward guidance drove the selling pressure: they expect a significant decline in operating margins due to tariffs.
While this was a fine earnings report, the market was shocked by the terrible forward guidance. So much so that the stock suffered its worst earnings reaction ever.
This fundamental deterioration is nothing new. Shareholders have been punished for eight of the past ten earnings events.
Additionally, the stock is on the cusp of resolving a textbook multi-decade distribution pattern. A breakdown from here would likely lead to a significant leg lower.
With fundamentals and technicals both pointing lower, we expect ZBH to break 86 and decline further.
Stay safe out there
-The Beat Team
P.S. The Squeeze Engine is built to see pressure build beneath the surface - before momentum erupts. Thatβs the same signal behind 6,341% and 2,578% moves this year.
