The Beat Report Articles

Home Depot $HD, the home improvement retail behemoth, reported a double beat and rallied nearly 3%.

It was an excellent report, but our retail expert, Jeff Macke, has pointed out one big problem. The housing market sucks right now.

What stood out to him from the conference call was this: "The higher interest rate environment continues to pressure larger remodeling projects."

The management team also said, "Our customer is very healthy... as they stay in their houses longer, they will take on larger remodeling projects as opposed to moving [but not yet]."

There will come a time when we want to be super long the stock, but that's not today.

The bottom line is that HD is a great American company, and its shareholders have been fabulously rewarded. The stock is up over 1,000,000% since it went public in 1981.

It's one of the best stocks ever.

For now, though, there are too many headwinds against this stock. Until the...

Uncle Warren is red hot right now. 🥵

Berkshire Hathaway $BRK.A / $BRK.B closed at a new all-time high on Monday after it smashed the market's expectations on Saturday.

The company reported operating earnings of $47.4B in 2024, a remarkable increase from $37.35B in the prior year.

In addition, insurance underwriting earnings rose to $9.02B in 2024, nearly double the $5.43B in 2023.

BRK has also significantly benefited from elevated interest rates, as it owns over $300B in U.S. government debt.

Here's the bottom line: the Oracle of Omaha is firing on all cylinders and riding this bull market higher.

Let's talk about what else happened 👇

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As you can see, Berkshire Hathaway $BRK.A / $BRK.B had the best reaction score on Monday, and Domino's Pizza $DPZ had the worst.  

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

Berkshire Hathaway reported a double beat and rallied over 4%. Its reaction score was 4.81...

Walmart $WMT reported a double beat but got beaten down as a result.

It was a bad day to own the stock. 

Our retail analyst, Jeff Macke, wrote a fantastic deep dive about the report. If you haven't seen it already, you can check it out here. 

The bottom line? Jeff found the quarter worse for Walmart's peers as they continue to invest heavily in the business. They are crushing competitors like Target.

In addition, the company is the largest private employer in the United States. This adds up to be a massive overhead expense.

With the AI revolution accelerating, they are a huge beneficiary. They're automating all kinds of labor, which is expected to expand margins.

Let's talk about what else happened 👇

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As you can see, Hasbro had the best reaction score on Thursday, and Walmart had the worst. 

Walmart was also the largest company to report. It reported a double beat but fell 6.5% with a...

We love to golf around here, even though we lose a lot of golf balls. But we're not the only ones.

Garmin $GRMN designs and manufactures a variety of fitness smartwatches. This includes a watch for golfers.

The technology is super cool. It's like having a caddie on your wrist.

They've programmed damn near every golf course in the world into this device. This shows golfers various things like distances to greens, hazards, and doglegs.

In addition, they embedded swing-tracking technology into the watch. This analyzes swing speed, tempo, club path, and more.

The bottom line is that this company is doing something right, and the market is noticing.

On Wednesday, they reported a double beat, and the reaction was super positive. The stock rallied over 12% and had a reaction score of 5.3.

The fitness segment (which includes the watches) is growing revenues by 32% Y/Y. This is extraordinary growth.

It wasn't just about the last quarter's results. The management team raised its forward guidance and increased the dividend by 20%.

The market loved everything about this report, and the reaction reflects that.

Let's talk about what...

Constellation Energy $CEG just released another blockbuster earnings report.

The company exceeded the top end of its guidance range for the second consecutive year.

In addition, they are returning money to shareholders at a rapid clip. Last year, they repurchased $1B in common stock.

Moreover, CEG increased the annual dividend by 25% last year and plans to grow the dividend by another 10% this year.

For the 11th consecutive year, they were the United States' largest producer of emissions-free energy. 

It's safe to say that Constellation is the Nvidia of "AI Utilities." It's a fantastic company!

Let's talk about what else happened 👇

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As you can see, Entergy had the best earnings reaction on Tuesday, and Medtronic had the worst. 

Constellation Energy was the largest company to report. It reported mixed results and rallied 2.6% with a reaction score of 0.3. It was muted.

Now, let's dig into the data and talk about some of the best and worst earnings reactions 👇

Airbnb $ABNB had its best day ever on Friday after it reported a double beat and raised its guidance the night before. 

It was a fabulous report.

Not only are they growing top-line at 12% Y/Y, but the company is a free cash flow machine. 

The company's free cash flow margin is 40%, which enables it to repurchase nearly $1B worth of common stock each quarter.

It's a share cannibal.

In addition, ABNB is investing $250M in launching and scaling new businesses this year. 

The management team isn't satisfied with their current market share. They want MORE!

The market loves their attitude, and the stock has been rewarded accordingly.

Let's talk about what else happened 👇

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As you can see, Airbnb had the best earnings reaction on Friday, and Godaddy had the worst.

Applied Materials was the largest company to report. It reported a double beat but fell 8.2% with a reaction score of -3.6. 

Now, let's dig into the data and talk about some of the best and worst earnings reactions...

In bull markets, consumers spend money. It's human nature.

MGM Resorts has been capitalizing on this increase in consumer spending, and the market is rewarding it.

After reporting a double beat on Wednesday evening, the stock had its best earnings reaction since 2009 on Thursday. 

It rallied 17.5% with a reaction score of 6.3. The reaction was sweet!

What's driving this strength? 

First of all, the company reported a 94% occupancy rate for the month of January. This is a record.

Second, they're anticipating a resurgence in China, which has been their primary driver for growth in recent years.

Finally, MGM is a share cannibal. Since 2021, they have repurchased 40% of total outstanding shares. 

This is one of the highest buyback rates in the entire market, and shareholders are loving it.

Let's talk about what else happened 👇

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As you can see, MGM Resorts International had the best earnings reaction on Thursday, and West Pharmaceutical Services had the worst.

Cisco Systems was...

CVS Health $CVS just had its best earnings reaction ever. It was fantastic.

The company issued a guidance for 2025 that was much better than expected. They plan to make between $5.75 and $6 of earnings per share this year.

David Joyner, the recently appointed CEO, has also done a fabulous job stabilizing Aetna's performance. This is what the market wants.

Let's talk about what else happened 👇

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As you can see, CVS Health had the best earnings reaction and reaction score during Wednesday's trading session.

On the downside, Westinghouse Air Brake Technologies had the worst earnings reaction and reaction score.

Now, let's dig into the data 👇

CVS Health was on the verge of resolving a multi-decade Kardashian topping pattern. This earnings reaction happened exactly when the bulls needed to step up and buy.

On a relative basis, the stock has resolved a distribution pattern that goes back to the 20th century versus the broader market. This suggests a...

Coca-Cola was founded in 1886 in Atlanta, Georgia, by a pharmacist named Dr. John Stith Pemberton.

Over the nearly 150 years of its existence, the brand has grown to be known and loved worldwide.

Despite its global saturation, the company is still growing like a weed.

In 2024, it grew revenues by 12% and increased its operating margin by 90 basis points to 24%.

The management team provided stronger-than-expected guidance for 2025 during Tuesday's conference call with investors and analysts. 

The market loved it and rewarded the stock with a higher stock price.

Let's talk about what else happened 👇

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DuPont de Nemours $DD beat its expectations and rallied nearly 7% with a reaction score of 5. They didn't just report a great quarter; the management team also provided better-than-expected guidance. 

In addition, it announced the acceleration of the intended spin-off of its electronics business, which is targeted for November 1st, 2025.

Ecolab $ECL beat its expectations and rallied over 6% with...

McDonald's $MCD missed its expectations across the board but rallied nearly 5% with a reaction score of 3.43.

The market was lovin' it. ;)

The company plans to open 2,200 restaurants in 2025, which is above average. This stock is all about growth.

McDonald's is also actively implementing its so-called "accelerating the arches" strategy, focusing on market share growth through value offerings, menu innovation, and culturally relevant marketing.

Let's talk about what else happened 👇

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Rockwell Automation $ROK beat its expectations and rallied 12.65% with a reaction score of 5.88. It was the stock's best earnings reaction EVER.

The company secured several multimillion-dollar strategic orders during the quarter, and the management team issued better-than-expected guidance.

ON Semiconductor $ON missed its expectations and fell over 8% with a reaction score -3.48. It was bad...

The company's revenue and gross margins are declining significantly. To make matters worse, the management...

On Friday, Amazon $AMZN, one of the most significant stocks in the universe, had its worst earnings reaction since Q1 2023. 

The company reported a total capital expenditure of $26.3B in Q4, which is expected to continue in 2025. 

Andy Jassy, the CEO of AMZN, is all in on AI, and the market isn't thrilled about it. 

Shareholders would rather have the money returned to them than have the company invest a tremendous amount in potential future growth.

Who has it right? Only time will tell...

Let's talk about what else happened 👇

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Take-Two Interactive Software $TTWO reported mixed results but rallied 14% with a reaction score of 9.14. The market loved it!

The company reported stronger-than-expected NBA 2K sales. They sold over 7M units, increasing daily active users by nearly 20%.

Expedia Group $EXPE beat expectations and rallied 17%, with a reaction score of 7.86. But the market was most excited about the announcement to reinstate the quarterly dividend.

In March 2020, the company...

Artificial intelligence is no longer just a futuristic buzzword - it’s a transformative force reshaping industries worldwide. 

Companies are racing to integrate AI into their operations, but many lack the in-house expertise to do so effectively. 

AI consulting is a rapidly growing sector that helps businesses harness machine learning, automation, and data analytics.

As AI products and services become increasingly powerful, the demand for AI consultants to help implement them will only grow.

The mega trend in AI consulting has already caught the attention of investors as these stocks continue to outperform the broader market.

The bullish thesis is clear as day and easy to understand. It's perfect for a Beat Report deep dive.

As businesses across healthcare, finance, retail, and other sectors seek to adopt AI-driven solutions, consulting firms that effectively bridge the gap between cutting-edge technology and real-world applications are positioned for significant growth...