Yesterday’s batch of 30 S&P 500 earnings brought fireworks across the board, with hardware makers, software platforms, insurance firms, and drug manufacturers all delivering market-moving results.
We saw renewed strength in under-the-radar names and sharp reversals in crowded leaders.
While some companies were rewarded with double-digit pops for beating expectations, others were punished harshly - even after solid reports.
It’s a clear reminder: fundamentals matter, but positioning and sentiment often matter more.
Let’s dig into today’s biggest moves!
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
The $174B computer hardware giant, Arista Networks $ANET, had a +4.41 reaction score after reporting a double beat. This snapped a 3-quarter beatdown streak.
They reported revenues of $2.20B, versus the expected $2.11B, and earnings per share of $0.73, versus the expected $0.65.
The $220B restaurant chain, McDonald's $MCD, had a +1.89 reaction score after reporting a double beat. Shareholders have now been rewarded for 3 of the company's last 5 earnings reports.
They reported revenues of $6.84B, versus the expected $6.70B, and earnings per share of $3.19, versus the expected $3.15.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
The $153B drug manufacturer, Amgen $AMGN, had a -4.35 reaction score after reporting a double beat. This was the 2nd consecutive negative earnings reaction.
They reported revenues of $9.18B, versus the expected $8.94B, and earnings per share of $6.02, versus the expected $5.28.
The $186B ride-hailing giant, Uber $UBER, had a -0.86 reaction score after reporting a double beat. This was the 4th consecutive negative earnings reaction.
They reported revenues of $12.65B, versus the expected $12.47B, and earnings per share of $0.63, which met the market's expectations.
Now let's dive into the data and talk about the most important beats 👇
ANET snapped a 3-quarter beatdown streak 🔥
Arista Networks rallied 17.5% after this earnings report, and here's what happened:
Revenue surged 30.4% year-over-year, driven by strong demand across product sectors and international markets, with AI, cloud, and enterprise momentum.
Net income grew even faster at 37.7% year-over-year. They also surpassed $1B in non-GAAP operating income for the first time.
In addition to the monster beat, the management team gave forward guidance that blew Wall Street's socks off.
We just witnessed a historic report from the $174B computer hardware giant, and the market reaction couldn't have been better.
This reaction was a clear change in tone from the previous 3 quarters, adding to our conviction in the strong fundamentals and technicals.
The gap-n-go from prolonged consolidations is one of our favorite patterns to trade. They frequently precede the best uptrends.
We think this stock is going much, much higher.
So long as ANET holds above 133, the path of least resistance is decisively higher for the foreseeable future.
UBER had its 4th consecutive negative earnings reaction 🩸
Uber Technologies had a slightly negative reaction to this earnings report, and here's what happened:
Revenue rose 18% year-over-year, driven by strong Mobility and Delivery growth.
Net income grew by an astounding 33% year-over-year, and adjusted EBITDA was up 35%.
With all of this extra cash on hand, the company announced a $20B share repurchase authorization.
Despite growing like a weed and being one of the best cash-generating machines in the market, the $186B ride-hailing giant continues to be punished for reporting earnings.
The price has carved out a massive accumulation pattern, which we think will eventually resolve higher.
However, this earnings reaction leads us to believe more time is required before a new mark-up phase can begin.
We want to see the stock rally on good news before we can have any conviction in a potential trade.
So long as UBER holds below 91, the path of least resistance is likely to remain sideways for the foreseeable future. Our line in the sand is the VWAP anchored to the all-time high.
Thank you for reading.
- The Beat Team
P.S.: When it comes to uncovering dirt on stocks, there's no one better than Herb Greenberg.
He recently joined JC Parets in a special livestream to discuss why he's always skeptical of stocks, and why you should be too.
