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
After smashing Wall Street's expectations, the $67B San Francisco-based software stock, Autodesk $ADSK, had a +5.41 reaction score.
They posted revenues of $1.76B, versus the expected $1.72B, and earnings per share of $2.62, versus the expected $2.45.
The $82B legacy computer hardware stock, Dell Technologies $DELL, had a -2.83 reaction score after beating headline expectations.
Their report showed revenues of $29.78B, versus the expected $29.02B, and earnings per share of $2.32, versus the expected $2.29.
Now let's dive into the fundamentals and technicals 👇
ADSK had its best earnings reaction in 13 quarters 🔥
Autodesk rallied 9.1% after this earnings report, and here's what happened:
Their top-line grew by 17% year-over-year, driven by a 36% increase in billings over the same period.
Free cash flow for the quarter was $451M, up an astounding 122% year-over-year.
In addition to the record quarter, the management team raised its full-year guidance for revenue, billings, margins, free cash flow, and share buybacks.
This was a fantastic report, and the market responded accordingly. We believe this reaction served as an initiation for a new markup phase in the stock.
The company is well-positioned to benefit from manufacturing reshoring in the United States, which the White House is currently aggressively pursuing.
The price has carved out a textbook multi-year accumulation pattern, which is likely to serve as a launchpad if and when the bulls take control of the primary trend.
A decisive close above 327 in ADSK would shift the path of least resistance from sideways to higher for the foreseeable future.
DELL suffered its 4th consecutive negative earnings reaction 🐻
Dell Technologies fell 8.9% after this earnings report, and here's what happened:
Revenue increased 19% year-over-year, driven by strong shipments of AI servers.
Non-GAAP diluted EPS reached a record $2.32, up 19% year-over-year.
In addition to the strong quarter, the management team raised its forward guidance.
This is a dominant player in servers, storage, and commercial PCs, but the market has quit rewarding them for great earnings reports.
We highlighted this trend of strong fundamentals, but weak earnings reactions, in a recent column of the Weekly Beat.
After suffering its second-worst earnings reaction ever late last year, the bears have been in control.
As you can see on the chart, the price filled the gap from last year's historic reaction and has been rolling over since then.
With Friday's sell-off adding downside momentum, we see no reason to get involved with this name anytime soon.
We expect DELL to remain under 142 for the foreseeable future.
Thank you for reading. We wish our U.S. readers a happy Labor Day.
-The Beat Team
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