There were some sweet earnings reactions on Wednesday. It was a day for the bulls.
Super Micro Computer $SMCI filed an overdue earnings report. The market didn't care about the numbers. It was just happy to hear the company wasn't a complete fraud.
Then there was Intuit $INTU, which blew the market away with its earnings report. We're going to talk more about it later.
We also heard from NRG Energy $NRG, one of the leading "AI Utilities" benefiting from expanding data centers in the United States.
There's a lot to unpack.
Let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
As you can see, Intuit $INTU had the best reaction score on Wednesday, and Keysight Technologies $KEYS had the worst.
The stock with the largest market capitalization was Intuit $INTU, and the smallest was Caesars Entertainment $CZR.
There weren't any double misses, but a handful of companies reported mixed results.
Now, let's dig into the data and talk about the most significant earnings reactions 👇
INTU had its best earnings reaction since Q3 2010:
Intuit reported a double beat and rallied 12.6%. Its reaction score was 6.58.
It was a fantastic report, and the market rewarded the stock in kind.
The company's revenues are growing by 17% year-over-year, driven by Credit Karma, which is growing at 36%. The growth is exceptional.
They also reiterated their 2025 guidance for double-digit revenue growth and expanding margins.
The stock has carved out a textbook multi-year accumulation pattern. It looks poised to resolve higher soon.
If and when INTU closes above 700, the path of least resistance will shift from sideways to higher.
16 out of the last 21 earnings reactions for AXON have been positive:
Axon Enterprise reported a double beat and rallied over 15%. Its reaction score was 4.6.
The company's revenues are growing by 34% Y/Y and have increased by at least 25% for 12 consecutive quarters.
In addition to growing its top line rapidly, its EBITDA margin is also at a record high of 24.6%.
This is one of the hottest growth stories in the S&P 500.
The stock has surged since it resolved a massive base in late 2023. We think it will continue trending higher.
If and when AXON closes above 700, we expect a fresh leg higher.
NRG had its best earnings reaction since Q4 2008:
NRG Energy reported mixed results but rallied over 10%. Its reaction score was 4.31.
The company made new all-time highs in earnings, EBITDA, and free cash flow during 2024.
They are benefiting from the expansion of data centers across the United States. This is expected to continue in the coming quarters.
The stock resolved a multi-decade basing pattern in late 2023 and has been up only since then.
If NRG is above 109, the path of least resistance is higher for the foreseeable future.
38 out of the last 52 earnings reactions for TJX have been positive:
TJX Companies reported a double beat and rallied nearly 2%. Its reaction score was 1.6.
The company exceeded its comparable same-store sales and pretax profit margin guidance. The market loved it.
In addition, they outlined plans to open 130 net new stores. This is expected to fuel future growth.
The stock has been in a secular uptrend for years, and we see no reason for that to change.
If and when TJX closes above 128, we expect a fresh leg higher.
9 out of the last 13 earnings reactions for KEYS have been negative:
Keysight Technologies reported a double beat and fell nearly 7%. Its reaction score was -4.3.
The company's operating margin fell 90 basis points year over year. They also issued softer-than-expected guidance.
In addition, they are navigating various geopolitical tensions, particularly in China. They plan to pivot to new opportunities.
The market doesn't like the uncertainty.
The stock has been stuck in a range for years, and we expect that to continue.
If and when KEYS closes above 185, the path of least resistance will shift from sideways to higher.
