Earnings season may be winding down, but it’s not going quietly.
We just got 38 fresh S&P 500 earnings reactions, and they brought fireworks on both ends of the spectrum.
Medical device makers and industrial machinery stocks are surging to multi-year highs, while pharma giants and software names are getting hammered in their worst earnings reactions in years.
Leaders in healthcare equipment, oil & gas, and internet retail were among the biggest winners, while drug manufacturers, cybersecurity, and travel services stocks took some of the sharpest hits.
With moves like these, the market is making it crystal clear which pockets of the S&P 500 it’s willing to reward - and which ones it’s ready to punish.
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
The $54B medical instruments & supplies stock, Beckton Dickinson & Company $BDX, had a +4.98 reaction score after reporting a double beat. This was the best earnings reaction since 2006.
They reported revenues of $5.51B, versus the expected $5.49B, and earnings per share of $3.68, versus the expected $3.40.
The $115B food delivery giant, DoorDash $DASH, had a +2.12 reaction score after reporting a double beat. Shareholders have now been rewarded for 4 of the company's last 5 earnings reports.
They reported revenues of $3.28B, versus the expected $3.16B, and earnings per share of $0.65, versus the expected $0.44.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
The $57B software provider, Fortinet $FTNT, had a -8.90 reaction score after reporting a double beat. This was the worst earnings reaction in 8 quarters.
They reported revenues of $1.63B, which met the market's expectations, and earnings per share of $0.64, versus the expected $0.59.
The $607B GLP-1 giant, Eli Lilly $LLY, had a -5.87 reaction score after reporting mixed results. This was the worst earnings reaction ever.
They reported revenues of $15.56B, versus the expected $14.70B, and earnings per share of $5.60, versus the expected $6.31.
Now let's dive into the data and talk about the most important beats 👇
DASH has been rewarded for 4 of its last 5 earnings reports 🔥
DoorDash rallied 5% after this earnings report, and here's what happened:
Total Orders grew 20% year-over-year to 761 million.
DashPass and Wolt+ subscriptions reached all-time highs, driving higher order frequency and engagement across both new and existing cohorts.
The management team expects the take rate to increase more than anticipated, which should fuel significant earnings growth.
This blockbuster earnings report sparked a textbook gap-n-go to new all-time highs, marking the resolution of a multi-year accumulation pattern.
We love how the market consistently rewards shareholders when the company reports earnings. This suggests there are strong fundamental tailwinds behind the strong technical uptrend.
We believe this earnings reaction marked the beginning of a new primary uptrend.
So long as DASH holds above 256, the path of least resistance is decisively higher for the foreseeable future.
LLY had its worst earnings reaction ever 🩸
Eli Lilly fell 14.1% after this earnings report, and here's what happened:
Revenue rose 38% year-over-year, driven by strong volume growth from Mounjaro and Zepbound.
Despite the strength in GLP-1s, the market is growing concerned about its future growth prospects. CVS has excluded Zepbound from its formulary, adding a significant headwind.
The management team raised its guidance, but the market was looking for more.
We outlined this setup in Sunday's Weekly Beat, calling this report a "make-or-break moment."
This earnings reaction could not have been worse...
The stock made a textbook gap-n-go from a prolonged distribution pattern with authority. This was the worst earnings reaction ever.
Despite Novo Nordisk $NVO crashing for months, LLY has held its range. Now that it has resolved lower, we expect a significant catch-down in price.
So long as LLY holds below 725, the path of least resistance is decisively lower for the foreseeable future.
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.
