The Beat Report Articles

Crown Castle $CCI just had its best earnings reaction since Q2 2003. It was epic.

What happened?

The company announced the sale of its fiber optics segment for $8.5B, making Crown Castle the only public pure-play U.S. tower company.

The market loves the simplicity.

This sale will also make the operations more efficient and reduce costs. 

With these extra funds, the company plans to implement a $3B share repurchase program. 

Now, let's talk about what else happened.

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As you can see, Crown Castle $CCI had the best reaction score, and Ulta Beauty $ULTA was a close 2nd place.

CCI reported $1.65B in revenues versus its $1.64B estimate and a loss of $10.97 per share versus the $0.44 estimate. This massive discrepancy in EPS was caused by the changes taking place at the company and shouldn't happen again.

ULTA reported $3.49B in revenues versus its $3.47B estimate and a gain of $7.13 per share versus the $8.46 estimate.

Now, let's dig into these reports and talk about their technical...

Adobe $ADBE just reported a double beat and got destroyed for it. The reaction was nasty!

Shares slid 13.85% during Thursday's market session and closed near the low.

The company reported revenues of $5.71B versus the estimated $5.66B and reported earnings per share of $5.08 versus the estimated $4.97.

Their AI-related business contributed $125M in ARR, and they expect that number to double this year.

The growth is off the charts, but the market has already priced it into the stock. 

The management team thinks the stock is cheap. They've repurchased $11.4B in stock over the last 12 months, equivalent to 7% of the market capitalization. They're authorized to repurchase an additional $14.4B.

ADBE is a share cannibal as it's aggressively eating its shares. This is a sweet tailwind for long-term investors.

Next week, the company is hosting the Adobe Summit 2025 in Las Vegas. It will be interesting to see if this successfully pumps the stock or worsens things.

Stay tuned...

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As you can see, Dollar...

While the U.S. equity markets have been under pressure, we've been hunting for pockets of relative strength.

These are the areas that will perform best once the selling subsides.

If a stock can buck the trend now, imagine how well it can do once the bulls regain control of the tape.

On Wednesday, we heard from the $2.4B customer experience management (CXM) solutions company, Sprinklr $CXM.

For the 2nd consecutive quarter, the company reported a double beat and rallied. 

The company increased its number of $1M customers by 18% year-over-year. This growth in high-value customers underscores the platform's value and potential for future revenue expansion.

As a cherry on top, the management team believes this growth will continue. They issued much better-than-expected forward guidance.

The market loved everything about this report, and the stock was rewarded for it.

This was the stock's 3rd best earnings reaction ever. We tend to see big earnings reactions before big trends in the stock price.

Sprinklr is on the cusp of resolving a textbook...

Oracle $ORCL, one of this cycle's AI darlings, reported earnings on Monday after the market closed.

It didn't go well...

The company reported a 6% year-over-year revenue increase. This was led by an astonishing 51% increase in its infrastructure as a service segment revenue.

Despite this tremendous growth, the market has already priced it in, and the reported numbers weren't enough to appease investors.

In addition, they issued weaker-than-expected forward guidance. This was like adding fuel to a forest fire.

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Oracle reported a double miss for the 2nd consecutive quarter and was punished for it. Shares fell 3.10%, with a reaction score of -0.28.

Intra-day, the stock was down more than 7%. It was nasty!

The market has consistently been punishing the stock for its earnings reports. 7 of the last 11 earnings reports have resulted in lower share prices.

This company is doing something wrong...

If ORCL is below 146, the path of least resistance is lower for the foreseeable future...

In this messy market environment we're experiencing, it's difficult to find stocks trending higher.

Many have left the United States altogether to search for gains abroad. 

One group of stocks that continues to display relative strength is precious metals stocks.

What's driving this trend? Gold futures resolved a multi-decade base and made new all-time highs a year ago.

The returns have been fabulous since then, and we think they're about to accelerate to the upside.

As you can see, the VanEck Gold Miners ETF $GDX is flirting with the resolution of a textbook accumulation pattern and new multi-decade highs.

This fund holds a market-capitalization-weighted basket of gold stocks. Names like Agnico Eagles Mines $AEM, Newmont $NEM, and Franco-Nevada $FNV comprise the top 5 holdings.

It's a great way to get exposure to the mining industry.

Now, let's talk about one of our favorite stocks in this ETF, which...

Broadcom $AVGO just reported another blockbuster earnings report, and the market loved it.

It wasn't anywhere near as positive as last quarter's reaction. Q4 2024 was the best earnings reaction ever, leading to the stock joining the 1 trillion dollar market capitalization club.

Nonetheless, this was a very positive development for the Semiconductor industry, which has sucked recently.

We've been talking about these stocks nonstop around here, and it's for a good reason. 

They're not just some of the largest and most important but also some of the most pro-cyclical. If anything is wrong with the economy, the market will send us a signal by decimating these stocks.

Steve Strazza recently wrote, "Semiconductors are the market's most critically important industry group. We may lose the bull market altogether if we lose the semis and NVDA."

Facts only! 💯

We have a lot to unpack today, so let's talk about what else happened 👇

Grocery stores are so hot right now! 🥵

Skyrocketing egg prices? No problem! Just pass the extra cost onto the consumer.

New tariffs on avocados from Mexico? No problem! Just pass the extra cost onto the consumer.

You get the point... These companies have tremendous power, and the market loves it.

Kroger $KR is one of the largest grocery store chains in the United States, and they've been rewarded for 13 out of its last 17 earnings reports.

This is as good as it gets.

The company reported mixed results on Thursday but rallied amidst a broad market selloff. It was very impressive.

Let's talk about what happened 👇

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As you can see, Kroger missed its top-line expectations but beat the bottom line. The market rewarded it with a 2% rally and a 3.86 earnings reaction.

It was fabulous.

Now, let's dig into the data and talk about the technical setup 👇

Kroger grew its total sales by 1.5% in 2024, but the real growth comes from its media business, which...

The biggest and best cyber security stocks haven't been rewarded for great earnings reports this quarter.

A few weeks ago, Palo Alto Networks $PANW reported a double beat, but it was beat down.

On Tuesday evening, CrowdStrike $CRWD reported a double beat, but it closed 6.33% lower on Wednesday.

This is a significant change in character from the recent past when these stocks were some of the hottest in the market.

PANW and CRWD recently rallied after 10 and 5 consecutive earnings reports, respectively.

This shows how much the market used to like what they had to say in their earnings reports. 

The tables have turned for these stocks. The market is now consistently punishing them for reporting earnings.

We have a lot to unpack today, so let's talk about what else happened 👇

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As you can see, Brown-Forman $BF.B had the best reaction score on Wednesday, and Crowdstrike $CRWD had the worst.  

The stock with the largest market capitalization was CRWD, and the smallest was Campbell's $CPB.

...

One of the largest discount stores in the world, Target $TGT just reported earnings. It wasn't good...

Yesterday, we told you this report was front and center for our retail analyst, Jeff Macke. It wasn't so much about being interested in buying or selling the stock as it was about the information they provided.

And they gave the market a ton of information, very little of which was positive.

The company reported a 3.1% decrease in sales year-over-year, and its profit margin fell to 4.7% from 5.8% in the previous year.

In addition, they issued softer-than-expected guidance. This added fuel to the fire.

Overall, the market hated this report, which doesn't bode well for the broader retail space.

We have a lot to unpack today, so let's talk about what else happened 👇

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Dell Technologies $DELL just reported mixed results, and the market beat it down as a result.

The stock has been an AI darling this cycle, rising over 400%. However, the sentiment is changing.

The market is now consistently punishing the stock when it reports earnings. This isn't something you see in uptrends.

What's going on with DELL?

The company is facing an increased amount of competition, which is causing a compression in margins. The market isn't happy about it...

In addition, it had to revise its previously issued financial results due to unrecorded supplier credits. That's no bueno.

The bottom line is Dell is trending in the wrong direction, and we think it has more trouble ahead.

We have a lot to unpack today, so let's talk about what else happened 👇

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As you can see, AES Corp $AES had the best reaction score on Friday, and NetApp $NTAP had the worst.  

The stock with the largest market capitalization was Dell Technologies $DELL, and the smallest was Mosaic $MOS.

Autodesk $ADSK...

Thursday was a big day for S&P 500 earnings reactions.

We heard from the market darling, NVIDIA $NVDA. They reported a double beat but were beaten down as a result.

eBay $EBAY was another stock that beat expectations but wasn't rewarded.

On the other hand, entertainment behemoths Warner Bros Discovery and Paramount Global missed the market's expectations, but the market rewarded them for it.

There was something for the bulls and the bears to chew on.

We have a lot to unpack today, so let's talk about what else happened 👇

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As you can see, Invitation Homes $INVH had the best reaction score on Thursday, and Teleflex $TFX had the worst.  

The stock with the largest market capitalization was NVIDIA $NVDA, and the smallest was APA Corp. $APA.

The market's reaction to NVDA's double beat was quite nasty. It was a big win for the bears.

Now, let's dig into the data and talk about the most significant earnings reactions 👇

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There were some sweet earnings reactions on Wednesday. It was a day for the bulls.

Super Micro Computer $SMCI filed an overdue earnings report. The market didn't care about the numbers. It was just happy to hear the company wasn't a complete fraud.

Then there was Intuit $INTU, which blew the market away with its earnings report. We're going to talk more about it later.

We also heard from NRG Energy $NRG, one of the leading "AI Utilities" benefiting from expanding data centers in the United States.

There's a lot to unpack.

Let's talk about what else happened 👇

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As you can see, Intuit $INTU had the best reaction score on Wednesday, and Keysight Technologies $KEYS had the worst.  

The stock with the largest market capitalization was Intuit $INTU, and the smallest was Caesars Entertainment $CZR.

There weren't any double misses, but a handful of companies reported mixed results. 

Now, let's dig into the data and talk about the most significant earnings reactions 👇