Earnings season isn’t slowing down - and neither are the market reactions.
We’re seeing significant moves on both ends of the spectrum, with some stocks surging to new highs while others are being obliterated.
It’s a reminder of how vital this data is, especially for stocks at key levels of interest.
In today’s Daily Beat, we’re breaking down the most notable earnings reactions from Friday and spotlighting the charts that matter most.
Let’s get into it!
Here are the latest S&P 500 earnings reactions 👇
*Click the image to enlarge it
VeriSign $VRSN had a +4.12 reaction score after reporting a double beat. This was the stock's 3rd consecutive positive earnings reaction.
They reported revenues of $5.32, versus the expected $4.85, and earnings per share of $1.43, versus the expected $1.16.
Charter Communications $CHTR had a -7.61 reaction score after reporting mixed results. This was the worst earnings reaction in the stock's history.
They reported revenues of $13.77B, which met the market's expectations, and earnings per share of $9.18, versus the expected $9.58.
Now let's dive into the data and talk about the most important reports 👇
VRSN had its 3rd consecutive positive earnings reaction 🔥
VeriSign rallied 6.7% after this earnings report, and here's why:
The company grew revenues and operating income by 5.9% and 5.4% year-over-year, respectively.
The renewal rate improved to 75.5% from 72.7% year-over-year, with broad-based growth across all regions, particularly in the Asia-Pacific region.
In addition to the excellent report, the board increased its share repurchase authorization by $913M, bringing the total to $1.5B (roughly 5% of the current market capitalization).
This was another solid quarter from the "utility of the internet".
We like how the market consistently rewards this company for its earnings reports. It adds to our conviction in the technicals.
The stock has now decisively broken out of a .com bubble base, entering a brand-new primary uptrend. We think this new trend could last for years.
So long as VRSN holds above 258, the path of least resistance is likely to remain higher for the foreseeable future.
CHTR had its worst earnings reaction ever 🩸
Charter Communications fell 18.5% after this earnings report, and here's why:
The company missed its earnings expectations by a country mile.
They lost over 100,000 broadband subscribers.
This company is on the wrong side of a mega trend away from traditional cable television (ahem, YouTube TV).
This earnings reaction is as bad as it gets... the market hated this report!
In addition, the technicals are suggesting more downside is on the horizon.
After a multi-decade secular uptrend, the stock has carved out a textbook distribution pattern. We think there's a good chance the bears put the finishing touches on this top before the end of 2025.
If and when CHTR closes below 236, the path of least resistance will decisively shift from sideways to lower for the foreseeable future.
Thank you for reading.
- The Beat Team
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