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 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
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Before Monday's opening bell, the $38B cruise line giant, Carnival $CCL, beat its headline expectations, but suffered a -2 reaction score.
The company posted revenues of $8.15B, versus the expected $8.1B, and earnings per share of $1.43, versus the expected $1.32.
Now let's dive into the fundamentals and technicals π
CCL failed to rally on good news π»
Carnival had a -4% post-earnings reaction, and here's what happened:
The top and bottom lines reached new all-time highs, driven by multi-decade highs in return on invested capital.
They are launching new loyalty programs and new destinations next year, which are expected to fuel future growth.
The company outperformed its guidance across all key metrics, including net yields, cruise costs, EBITDA, and net income. Furthermore, the management team raised its forward guidance.
We highlighted this setup in the latest Weekly Beat, anticipating a better-than-expected earnings report and a gap-n-go above the 2021 peak.
While we nailed the headline numbers, we were dead wrong about the market reaction. This was a terrible earnings reaction on the heels of a beat / beat / raise.
It doesn't get more bearish than that...
The market is telling us loud and clear that this stock is not yet ready to enter a new uptrend and needs more time to consolidate.
We still think the setup is constructive, as the price is a stone's throw away from resolving a textbook bearish-to-bullish reversal pattern.
If and when CCL closes above 31, the path of least resistance will shift from sideways to higher for the foreseeable future. Until then, we expect the price to continue consolidating.
Happy fishing
-The Beat Team
P.S. Small-cap season is here - Steve Strazza and Mary Thwaites went LIVE to talk about which stocks they're buying and why.
