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 S&P 500 earnings moves from the prior session: the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs 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 π
*Click the image to enlarge it
After Wednesday's closing bell, we heard from the $26B alcoholic beverage producer, Constellation Brands $STZ. Following a big double beat, shareholders were rewarded with a +2.71 reaction score.
The company reported $2.22B in revenues, beating the expected $2.15B, and earnings per share of $3.06, beating the expected $2.63.
Let's talk about what else happened with this beat π
STZ had its best earnings reaction since 2020π₯
Constellation Brands had a +5.3% post-earnings reaction, and here's what happened:
Net sales declined 10% year-over-year to $2.22B, mainly due to divestitures and lower shipment volumes, but only 2% on an organic basis.
While Wine & Spirits sales declined 51% year-over-year, beer sales were down only 1% over the same period.
The management team expects continued pressure from subdued consumer demand, inflation, and tariffs, but remains committed to margin expansion and cash flow growth. With this in mind, they reiterated their 2026 EPS guidance.
Since peaking in 2024, this has been one of the hottest messes in the S&P 500. Over that timeframe, the price has fallen more than 50%, and long-term momentum is the most oversold since the Great Financial Crisis.
Can things get much worse?
This quarter's performance was weak, but the management team is making significant changes to turn the company around.
And it seems like Mr. Market believes there's a chance.
Not only did the stock have its best earnings reaction in years, but the price has carved out a textbook bearish-to-bullish reversal pattern.
Now let's see if STZ bulls can make some more progress this quarter.
Thank you for reading.
-The Beat Team
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