The Beat Report Articles

Welcome to The Weekly Beat.

We’re nearing the end of earnings season, but the action hasn’t slowed down.

Last week brought a mix of surprises — a grocery chain ripped higher, a semiconductor giant was punished for a double beat, and a cruise line delivered one of its best quarters ever.

This week, however, things are shifting.

It’s shaping up to be one of the quietest stretches of the year for earnings, with just a few companies set to report.

With fewer new catalysts, our focus will shift to reviewing the most important reactions of the season and identifying the names that show the strongest trends as we head into Q3 of 2025.

In this week’s recap, we'll cover the biggest takeaways from last week and preview the setups we’re watching next.

• Monday:
  • Kroger $KR reported mixed results and rallied nearly 10% on the news. E-commerce sales grew 15% year-over-year, which management called the "best profit improvement yet on a quarter-over-quarter basis" for the...

Micron $MU just delivered another double beat, but the market wasn’t impressed.

This marks the 3rd consecutive earnings report where investors have punished the stock despite strong headline numbers.

That’s a big red flag.

This company sits at the heart of the semiconductor supply chain, manufacturing DRAM and NAND memory chips that power everything from smartphones to servers. 

Management has repeatedly identified 2025 and 2026 as major inflection points...

They’ve cited tighter supply conditions, a stronger pricing environment, and accelerating AI-driven demand as long-term tailwinds.

However, the market demands more than long-term promises... it wants margin expansion now.

As investors shift toward names demonstrating operating leverage today, the lack of upside follow-through in the stock is becoming increasingly difficult to ignore.

It’s still one of the most important players in the AI arms race.

However, until the strong fundamentals translate into bullish price action, it’ll remain stuck in neutral.

Will that change soon?

We'll see when they report again in 90 days.

So what else did we learn...

Paychex $PAYX just delivered its worst earnings reaction ever, and here’s why it matters.

This $50B HR and payroll giant just posted its first double miss in decades. 

Revenue and earnings both came in below expectations, and the stock cratered in response.

This wasn’t just a bad quarter... It was a sharp deviation from one of the most consistent long-term compounders in the market.

The company has been a steady beneficiary of U.S. job growth and the formation of small businesses. 

But this report revealed cracks.

Client growth is stalling. 

Margins are under pressure. 

And the forward guidance didn’t give investors much reason for optimism.

It’s a tough pill to swallow for a stock known for defensive stability and reliable dividend growth.

The big question now: was this a one-off stumble, or the start of a longer-term deterioration?

We’re watching closely to see how the market digests this one. 

Because when dependable compounders start missing, it’s a signal worth paying attention to.

So what else did we learn from yesterday's earnings reactions? Let’s dive into the details...

Carnival Cruise Lines $CCL continues to show why it’s one of the top operators in global leisure travel.

The $33B cruise giant just reported a record-breaking quarter, posting the highest quarterly margins in nearly 20 years.

The market rewarded the results with a 6.9% rally, marking the company’s 5th positive earnings reaction in the last 7 quarters.

After being completely devastated during COVID, the travel industry is booming like never before.

Everything about this report was fantastic.

They're crushing it, and it’s a clear sign that U.S. consumers are still spending.

Despite the strength, the stock has gone nowhere for years. 

We think that could be changing soon...

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Carnival $CCL had a +1.30 reaction score after reporting a double beat.

The company reported revenues of $6.33B, versus the expected $6.21B, and earnings per share of $0.35, versus the expected...

FactSet Research Systems $FDS continues to deliver quietly.

The $16.5B data analytics giant just posted another solid quarter, and the market rewarded it with a 3.5% gain.

The company reported mixed headline results, but a closer look reveals clear signs of progress beneath the surface.

But what really got the market's attention was the announcement of Sanoke Viswanathan as the new CEO.

A former JPMorgan executive and longtime FactSet client, he brings a rare combination of operator experience and deep industry insight. 

His appointment signals a fresh, customer-centric approach at the top, and investors seem to like it.

It’s moves like these that remind shareholders why this has been one of the Financial sector’s long-term winners.

With the stock now up after 4 of the last 5 earnings reports, the trend is clear... the market continues to reward the stock for consistent execution.

This name remains one of the most quietly reliable compounders in the entire market.

So what else did we learn from this earnings report? Let’s dive into the details.

...

Accenture $ACN is one of the world’s largest IT services and consulting firms — but lately, it’s been left behind.

At a time when artificial intelligence is reshaping the enterprise landscape and fueling demand for digital transformation, most top-tier consultants are thriving.

But Accenture isn’t.

Despite having the scale, reputation, and resources to lead in this environment, the company is struggling to capitalize.

Revenue growth has stalled. 

Bookings are uneven. 

And operating leverage is under pressure.

This is especially concerning given the magnitude of the opportunity. 

Businesses across every sector are racing to integrate AI into their workflows, and consultants are among the biggest beneficiaries of this gold rush.

Yet Accenture has been punished for 6 of its last 9 earnings reports, including 2 in a row. 

That kind of consistent negative reaction sends a clear message: investor patience is wearing thin.

This isn’t about missed earnings. It’s about...

Welcome to The Weekly Beat.

As we near the end of this earnings season, there's still plenty of action around here.

Last week, we saw a double beat from a software giant, which resulted in a massive selloff.

We also heard from one of the largest homebuilders in the United States, and it wasn't good.

And with several prominent names sitting at critical levels, the stakes are only getting higher. 

In this week’s recap, we cover the key reactions from last week and preview the setups we’re focused on heading into next week.

• Monday:
  • Adobe $ADBE reported a double beat and fell 5.3% on the news. The bears continued selling as the price closed the week at a new multi-week low.
  • The bears continued selling as the price closed Friday at a new multi-week low. In addition, the stock is below the VWAP anchored to the key pivot low on April 7, 2025.
• ...

There weren’t any S&P 500 earnings reactions yesterday…

However, one industry group continues to stand out: Regional Banks.

There are 346 tradeable Regional Bank stocks in the U.S., but most have been dead money, or worse, for years. 

Balance sheet stress, deposit flight, interest rate risk, and the absence of consolidation have weighed on the group.

We haven’t seen a wave of M&A to clean things up in decades. 

The weakest names are still out there, dragging down the averages like the S&P Regional Bank ETF $KRE.

And that’s why we built a custom Super Regional Bank Index - to isolate the quality. 

Our Super Regional Bank Index includes the top 25 Regional Banks by market capitalization. With loosening banking regulations, these names are poised to benefit from industry consolidation.

As you can see, the index is breaking above the 2018 peak for the first time. After over 7 years of no returns, this is the beginning of a brand-new uptrend.

You won't see that in the KRE, which has structurally broken...

Lennar $LEN just reported mixed results and suffered its 7th consecutive negative earnings reaction.

This is one of the largest homebuilders in the United States.

The company operates across 26 states, with significant exposure to high-growth Sun Belt markets. Florida, Texas, and California are among its most important regions.

Their business model is simple: build quality homes, control costs, and manage supply carefully. 

But that model is being tested...

Affordability challenges are weighing on buyers. 

High mortgage rates, rising costs, and weak pricing power are all cutting margins.

This is still a heavyweight in housing. 

However, until the market feels better about margins and demand, investors aren’t giving it the benefit of the doubt.

So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.

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Jabil $JBL had the best reaction...

There weren’t any S&P 500 earnings reactions yesterday…

But a major policy headline just rocked the solar industry, and we think it's worth noting.

Late last night, the Senate Finance Committee unveiled a surprise proposal to phase out clean energy tax credits by 2028.

This was well ahead of schedule.

Investors had been pricing in years of continued subsidy support. The abrupt shift caught the industry completely offside.

To make matters worse, a major Wall Street bank doubled down on its bearish view this morning. They're specifically targeting residential solar names like Sunrun $RUN, SolarEdge $SEDG, and Enphase $ENPH.

The market’s response? Carnage.

As you can see, it's very unusual for the Solar ETF to have a double-digit percentage move in a single day. 

However, today was extra violent. Before the market opened, the price had crashed by over 10%.

Every stock was getting smoked.

Many names are still down a lot as we're writing this intraday.

Sunrun, SolarEdge, and Enphase Energy are leading the way on the...

Adobe $ADBE is one of the most iconic names in creative software. 

It is the $167B powerhouse behind industry staples like Photoshop, Illustrator, and Premiere Pro.

But Wall Street isn’t cutting it any slack.

Despite delivering double beats in 8 straight quarters, this stock has been punished for 7 of its last 8 earnings reports.

Investors aren’t reacting to the numbers. They’re reacting to the narrative.

And that narrative has shifted.

The rise of AI-native challengers like Midjourney, Runway, and Stability AI has questioned Adobe’s dominance. 

Despite steady revenue growth and ambitious product updates, the market seems unconvinced that Adobe can defend its turf in this new competitive landscape.

In an environment where every software name is expected to show AI hypergrowth, “steady” isn’t cutting it.

The price action reflects that tension.

So what else did we learn from this earnings report? Let’s dive into the details.

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Adobe had a -1.71...

Welcome to The Weekly Beat.

Last week was packed with market earnings reactions. 

We saw double beats, historic selloffs, and a $100B surge in market cap. 

Investors were forced to separate strength from weakness. 

And with several prominent names sitting at critical levels, the stakes are only getting higher. 

In this week’s recap, we’re covering the key reactions from last week and previewing the setups we’re focused on heading into next week.

• Monday:
  • Broadcom $AVGO reported a double beat and fell 5% on the news. This dip was quickly bought, and the stock closed the week at a fresh all-time high.
  • Lululemon $LULU posted a double beat and slipped 19.8% in response to it. This was the worst earnings reaction since 2017.
• Tuesday:
  • No earnings reactions in the...