Visa $V delivered a clean double beat this quarter, and the market loved it.
They reported $2.76 EPS on $9.59B in revenue, but the price action really tells the story.
The stock initially fell by 3% at yesterday's open...
But the buyers stepped in and ripped the price higher the rest of the day, printing a bullish engulfing candlestick and reclaiming the VWAP anchored to the all-time high.
That’s a powerful combination of strength: solid fundamentals and a clear sign of institutional support.
This isn’t just a bounce, it’s a reclaim of leadership.
After months of drifting lower, Visa bulls are suddenly back in the driver's seat.
The setup looks clean, the trend wants higher, and the bulls have the ball.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Trane Technologies $TT had the best reaction score after reporting a double beat.
The company reported revenues of $4.69B, versus the $4.46B estimate, and earnings per share of $2.45, versus the $2.20 estimate.
CoStar Group $CSGP had the worst reaction score after reporting a double beat.
The company reported revenues of $730M, versus the $720M estimate, and earnings per share of $0.14, versus the $0.12 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
V printed a bullish engulfing candlestick after its earnings report:
Visa rallied 1.2% after this earnings report, and here's why:
Payment volume grew by 8% year-over-year.
Revenue from value-added services increased 23% Y/Y.
They returned $5.6B to shareholders through share repurchases and dividends during the quarter. In addition, the board authorized a new $30B multi-year share repurchase program.
This company is crushing it, and the market loves it!
The price recently suffered a nearly 20% drawdown, but the bulls are back in control. They were able to decisively reclaim the VWAP anchored to the all-time high with a bullish engulfing candlestick.
If V is above 335, the path of least resistance is higher for the foreseeable future.
CAT is reversing a top after its earnings report:
Caterpillar rallied 0.6% after this earnings report, and here's why:
They achieved a record for organic backlog growth. It grew by $5B in the quarter (17% year-over-year growth) to a record $35B.
They returned $4.3B to shareholders through share repurchases and dividends during the quarter.
The management team issued better-than-expected guidance. They previously expected revenue and earnings to be down in 2025, but now they think it'll be flat relative to 2024.
This is one of the most important industrial companies in the world. Does it sound like they're in a recession to you?
We certainly don't think so!
The stock recently resolved a textbook distribution pattern. However, the bulls have stepped in and repaired the damage by getting the price back above a key level of interest.
If CAT is above 308, the path of least resistance is sideways for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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