Earnings are the heartbeat of the market - and every week brings a fresh set of opportunities and risks. With each report, we get new information about corporate health, investor sentiment, and the sectors driving leadership (or lagging).
In the Weekly Beat, we spotlight the most important earnings reactions from the prior week - the winners, the losers, and the surprises that moved markets. Then we shift our focus forward, breaking down the biggest setups and expectations for the week ahead.
Whether it’s mega-cap leaders, niche growth stories, or the sectors most tied to the economy, we’ve got you covered on what traders need to know right now.
After reporting a double beat, the world's second-largest semiconductor stock, Broadcom $AVGO, rallied 9.4%. AI semiconductor revenue is increasing by 63% year-over-year.
Following a mixed earnings report, the $20B apparel retailer Lululemon Athletica $LULU crashed 18.6%.Tariffs are eating this company's margins.
There were no S&P 500 earnings reactions on Monday, but we wrote about Planet Labs $PL, one of the hottest space stocks in the market.
The company just turned free cash flow positive, and its backlog is growing by 245% year-over-year. Mr. Market loves it and has rewarded shareholders with back-to-back record post-earnings moves.
There were no S&P 500 earnings reactions on Tuesday, but we heard from one of the world's best retailers. Some stocks chop, but Casey’s General Stores $CASY just goes up.
CASY is a secular leader, making new all-time highs in absolute and relative terms. Additionally, the stock has consistently rallied after earnings, reaffirming the strong long-term fundamentals.
After missing headline expectations, the world's second-largest software infrastructure stock, Oracle $ORCL, skyrocketed higher by nearly 36%. Remaining performance obligations (RPO) surged 359% year-over-year to $455B, fueled by major multi-billion-dollar cloud contracts.
Following a double miss, the $72B software infrastructure stock, Synopsys $SNPS, tanked by nearly 36%. The market panicked when the company announced a major foundry had reduced orders or pulled out of some expected commitments.
After posting mixed headline results, the $44B grocery store chain, Kroger $KR, rallied 0.30%. They reported revenues of $33.94B, versus the expected $34.10B, and earnings per share of $1.04, versus the expected $0.99.
Sales increased by 3.4% year-over-year, driven by 16% growth in e-commerce over the same period. In addition to the great quarter, the management team boosted its forward sales and operating profit guidance.
What's happening next week 👇
Next week, we'll be focusing on the second-largest integrated freight and logistics company, FedEx $FDX. It's a bellwether for transportation stocks, which have sat on the sidelines for this entire bull market.
Beyond FDX, we’ll also be watching:
The producer of Honey Nut Cheerios, General Mills $GIS.
One of the world's largest financial data providers, FactSet Research Systems $FDS.
And the homebuilder giant, Lennar $LEN.
In addition, we'll hear from several small-cap stocks, as well as the European football club Manchester United $MANU.
It'll be one of the slowest weeks of the year in terms of new earnings reactions, but as you can see, there will be plenty to cover in The Daily Beat.
Now, let’s take a closer look at FedEx.
Here's the setup in FDX ahead of Thursday's earnings report 👇
FedEx is expected to post $21.67B in revenue and EPS of $3.65 after Tuesday's closing bell.
Heading into the report, the price is consolidating below the neckline of a multi-year distribution pattern. It's ripe for an epic post-earnings beatdown.
While still one of the largest names in its industry, this has been one of the worst performers recently. We see no evidence to suggest that this is about to change.
So long as the bears hold the line at 235, the path of least resistance is likely to remain lower for the foreseeable future.
Here are the past 3 years of earnings results & reactions for FDX 👇
Over the past three years, FedEx has consistently missed Wall Street's top-line expectations, and revenue growth has been steadily declining.
In June 2024, the stock rallied more than 15% for its best earnings reaction of the 21st century. However, this was met next quarter with an equally significant downside post-earnings move.
Since then, we've seen nothing but blood, with 4 consecutive negative earnings reactions.
The bottom line is that FDX is one of the most significant transportation stocks, but the market doesn't like what they're doing.
With the technicals and fundamentals firmly in control by the bears, we're expecting another post-earnings beatdown next week.
Happy Sunday
-The Beat Team
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