The Beat Report Articles

Oracle $ORCL is proving that old tech can still deliver new growth.

The $600B enterprise software giant just posted a double beat, and the stock surged 13.3% to fresh all-time highs.

Buyers followed through on Friday with an additional 7.7% increase.

It’s the latest sign that Oracle’s multi-year cloud transformation is working.

After decades as a dominant database provider, Oracle has successfully repositioned itself as a modern cloud infrastructure and applications company. 

And that pivot is accelerating.

Total revenues are ramping higher, and the management team expects this to accelerate.

They raised full-year revenue guidance to the fastest in decades.

In addition, they're benefiting from major tailwinds in generative AI and large language model training. 

Partnerships with Nvidia, OpenAI, and Microsoft are positioning them as a key player in the future of cloud computing.

And the market is rewarding this shift.

The market is consistently rewarding the stock for its earnings reports..

Oracle has quietly re-entered the conversation as one of the most essential platforms in enterprise software...

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

But a big newswire hit the tape this morning, and it's worth paying attention to.

Uber Eats announced a partnership with Dicks Sporting Goods $DKS and Golf Galaxy to offer on-demand delivery from hundreds of stores nationwide.

Yes, you read that right.

Sports gear, apparel, and even golf clubs are delivered to your door in under an hour.

It’s not just about convenience. 

It’s a strategic shift for both companies.

Uber $UBER has spent the past few years aggressively diversifying away from its legacy ride-share business.

They're already the largest component of the iShares Transportation ETF $IYT.

But they are determined to continue growing and rewarding shareholders.

• Delivery now generates nearly 40% of total revenue.
• Gross bookings in delivery hit all-time highs last quarter....

J.M. Smucker $SJM just reminded investors that not even iconic consumer brands are immune to execution risk.

The $10B packaged food giant reported mixed results on Tuesday and suffered the worst earnings reaction in company history.

And it wasn’t just the headline numbers.

The company revised its long-term growth expectations lower for its recently acquired Sweet Baked Snacks portfolio.

They also lowered forward EPS guidance below consensus expectations.

These aren’t isolated issues. 

They reflect broader challenges of a flawed growth strategy.

For decades, this was a defensive compounder, anchored by brands like Jif, Folgers, Uncrustables, and Smucker’s jam. 

But its recent shift into new categories, primarily through the Hostess acquisition, hasn’t gone as smoothly as hoped.

Margins are under pressure, and inventory costs are increasing.

The market’s verdict? It’s an apparent loss of confidence.

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

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J.M....

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

But one recent move continues to stand out.

There’s a quiet resurgence happening in one of the market’s most forgotten corners: Genomics.

The industry has been left for dead after peaking during the 2020 to 2021 boom and suffering an 85% collapse.

But buried under the wreckage are a few real businesses making real progress.

One of them is Adaptive Biotechnologies $ADPT, a $1.6B biotech company on a mission to decode the immune system.

Their goal is simple but revolutionary: make the immune response a measurable, actionable source of insight for diagnosing and treating disease.

They’re already delivering on that promise through clonoSEQ, their flagship test for monitoring minimal residual disease in blood cancers. 

This product is seeing strong clinical uptake and broader support from payers and regulators.

What’s even more exciting is who they’re building with.

They’ve partnered with Microsoft $MSFT to apply machine learning at scale to immune...

Broadcom $AVGO continues to reinforce its place among the market’s top compounders.

The $1.1T semiconductor and infrastructure software giant just posted another double beat. 

Despite the beat, the stock traded down 5% in reaction to the news, showing that expectations were high heading into the event. 

But context matters.

Zooming out, the stock has been rewarded for 17 of its last 22 earnings reports. That kind of consistency is rare, especially at this scale.

What makes the company's story so compelling is its multi-engine business model. 

On one side, it powers global connectivity with networking chips, broadband, and custom silicon. In addition, they provide critical infrastructure for cloud, telecom, and AI data centers. 

On the other hand, it offers a high-margin software platform anchored by the VMware acquisition, generating sticky recurring revenue across enterprise systems.

This blend of hardware scale and software stability has helped them become one of the most reliable long-term performers in the market.

The recent pullback may have caught attention, but the bigger story remains intact......

Another week of earnings, another batch of signals from the market.

The market reactions told us plenty whether companies beat, missed, or landed somewhere in the middle.

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:
  • Costco $COST reported a double beat and rallied 3.1% on the news. The stock is now hovering near all-time highs.
  • Dell Technologies $DELL posted mixed results and slipped 2.1% in response to it. The market has punished the stock for 5 of the last 7 earnings reports.
• Tuesday:
  • No earnings reactions in the S&P 500, but we spotlighted Toast $TOST, one of our favorite up-and-coming Software leaders.
  • After turning EBITDA positive for the first time and completing a multi-year base, the stock looks poised...

Brown-Forman $BF.B just reported a double miss, and the market didn’t hold back.

Shares dropped nearly 18%, marking the worst earnings reaction in company history.

This isn’t an overreaction. It’s a reflection of deepening concerns about the company’s fundamentals.

Organic sales growth is slowing, margins are compressing, and iconic brands like Jack Daniel’s are struggling to maintain momentum in an increasingly competitive and cost-sensitive environment. 

What used to be seen as a premium, defensive name in consumer staples is now being priced more like a challenged value trap.

Even before this report, sentiment had been weakening. 

The stock has been punished for 8 of the last 12 earnings reports, a sign that investor confidence has been eroding for quarters.

Until management proves it can regain margin control and reignite consistent demand growth, things will continue worsening.

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

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Brown-Forman had a -7.34...

CrowdStrike $CRWD reported earnings Tuesday after the market closed.

While the results were objectively strong, the stock was met with a negative reaction in Wednesday’s session.

This marked the 3rd straight quarter where a double beat was followed by selling pressure.

On paper, the company is doing what investors should want.

Recurring revenue continues to climb, margins are expanding, and customer adoption remains healthy across multiple segments. 

Management once again delivered better-than-expected numbers, reinforcing their status as one of the most reliable compounders in enterprise software.

Yet the market wasn’t in the mood to reward them.

Some of that may come down to high expectations. 

Because the stock has performed so well in recent years, anything less than perfection can spark a short-term pullback.

There may also be concerns about moderating growth rates or cautious guidance. 

But zooming out, the fundamental story hasn’t changed. 

This company continues to dominate endpoint protection, build out a broader cybersecurity platform, and win market share...

Dollar General $DG is starting to look like one of the best turnaround stories in retail.

A few quarters ago, the stock was in freefall after posting its worst earnings reaction in history. 

The Q3 2024 report was a wake-up call. Margins were under pressure, comps were deteriorating, and execution had faltered.

But fast forward to today, and the narrative is shifting.

The company delivered a double beat this quarter and rallied nearly +16%, marking its best earnings reaction ever.

A stock left for dead just eight months ago is now stringing together three consecutive positive earnings reactions.

Under new leadership, they are starting to repair investor confidence. 

They are focused on improving inventory efficiency, stabilizing margins, and reconnecting with their core low-income consumer.

The market is taking notice.

The story isn’t just about repairing a broken business. 

It’s about re-earning trust from investors. So far, Dollar General is doing precisely that.

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

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

But one recent move continues to stand out.

Toast $TOST is quietly becoming one of the most compelling growth stories in the entire software space.

Originally built to serve restaurants, the company is scaling far beyond its roots.

This $25B vertical SaaS giant is modernizing one of the economy's most fragmented and underserved industries.

They're transforming how restaurants manage everything from point-of-sale and payroll to online ordering, delivery, and inventory.

It's building the operating system for the restaurant industry.

The total addressable market is enormous. And they're just getting started.

After years of unprofitability, the company has flipped the script. 

They have turned EBITDA positive, and top-line growth is accelerating. 

The market is taking notice, rewarding the stock for 5 of its last 6 earnings reports. 

On a relative basis, it's becoming a clear leader in the software space.

This is no longer a turnaround story.

It’s a breakout story.

When it comes to retail dominance, few names carry as much weight as Costco Wholesale $COST.

For years, this company has been the gold standard for operational efficiency and customer loyalty. 

They thrive in both inflationary and deflationary environments. 

Whether consumers are stockpiling for uncertain times or looking for value in everyday essentials, it consistently delivers.

Membership growth remains steady, renewal rates are near all-time highs, and recurring revenue from fees continues to be one of the most underappreciated drivers of long-term value.

In the latest quarter, the company once again posted a double beat, and the market rewarded it with another move higher.

Despite broader concerns about slowing consumer spending, this business continues to prove it can grow, defend margins, and execute.

The market knows it. And the stock is acting accordingly.

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

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Ulta Beauty $ULTA had the best...

We covered a lot of ground last week.

From some of the world's most important companies to small-cap Aerospace & Defense names, earnings season continues to give us plenty to chew on. 

Some stocks are following through to the upside after strong earnings reactions, while others are struggling with overhead supply.

In this week’s recap, we'll highlight the most important moves and where the next opportunities may be.

• Monday:
  • Intuit $INTU reported a double beat and closed at a fresh all-time high. The stock resolved a massive basing pattern, entering a brand-new primary uptrend.
  • Deckers Outdoor $DECK reported a double beat and was crushed for it. The stock resolved a textbook distribution pattern, entering a brand-new primary downtrend.
• Tuesday:
  • No S&P 500 earnings reactions, but we...