Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether it’s a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the latest earnings stats from the S&P 500 👇
*Click the image to enlarge it
The $12B specialty industrial machinery stock, Nordson $NDSN, had a +2.02 reaction score after reporting a double beat.
They posted revenues of $740M, versus the expected $720M, and earnings per share of $2.73, versus the expected $2.64.
The $782B discount store behemoth, Walmart $WMT, had a -2.97 reaction score after reporting mixed results.
They posted revenues of $177.40B, versus the expected $175.94B, and earnings per share of $0.68, versus the expected $0.73.
Now let's dive into the data and talk about the most important beats 👇
NDSN had its 3rd consecutive positive earnings reaction 🔥
Nordson rallied 3% after this earnings report, and here's what happened:
Revenues and adjusted EPS increased year-over-year by 12% and 13%, respectively.
Their acquisition of Atrion from August of last year for $800M is going better than initially anticipated.
In addition to the strong quarterly report, the board approved a new $500M share repurchase authorization.
The market has been concerned about their acquisition of Atrion, but the management team has proved itself. It's going very well!
This company just keeps crushing.
They have a long track record of returning value to shareholders through 61 years of annual dividend increases. Now, they're shifting to share repurchases, and the market loves it.
After a nearly 40% drawdown from December to April, the stock has carved out a textbook bearish-to-bullish reversal pattern. We think the bulls are about to regain control of the primary trend.
Adding to our conviction in the technical setup is the way the market has consistently rewarded the stock for its earnings events.
If and when NDSN closes above 225, the path of least resistance will decisively shift from sideways to higher for the foreseeable future.
WMT had its 3rd consecutive negative earnings reaction 🩸
Walmart fell 4.5% after this earnings report, and here's what happened:
Revenues increased by 5.6% year-over-year, led by e-commerce sales, which surged 25% over the same timeframe.
They are continuing to invest heavily in AI, which is expected to improve profit margins.
In addition to the strong quarterly results, the management team raised its forward sales and EPS guidance.
We outlined this setup in Sunday's column of the Weekly Beat, pointing out that sellers were showing up at the February peak, and we expected another negative earnings reaction.
We also pointed out that they have some of the steadiest fundamentals in the market.
After years of being dominated by Amazon $AMZN in the e-commerce business, this retail giant is finally putting up a serious fight.
Not only is it a delightful service (you should try it if you haven't), but it's expanding Walmart's already giant market share, and the market loves it.
Ever since the stock snapped a streak of 4 consecutive positive earnings reactions in February, the price has been churning sideways.
Confirming the correction is a new streak of negative earnings reactions.
We think this is a healthy consolidation in one of the strongest primary uptrends in the S&P 500.
So long as WMT holds below 105, the path of least resistance is likely to remain sideways for the foreseeable future.
A close above that level would mark the resolution of this corrective wave and the resumption of the primary trend.
Thank you for reading
-The Beat Team
P.S. Jeff Macke went live earlier this week to break down what’s really happening in the consumer space.
He unveiled his Q4 playbook, introduced brand-new consumer indexes he built himself, and laid out how to separate the real winners from the pretenders.
If you want an expert consumer analyst to break down earnings reports like WMT for you, there's nobody in the world better than Jeff.
When it comes to retail, Macke’s track record speaks for itself. He’s been trading this space for decades - and with a Target executive for a father, he’s been immersed in the industry since childhood.
