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 S&P 500 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
*Click the image to enlarge it
The best earnings reaction came from Keurig Dr. Pepper $KDP, one of the world's largest providers of non-alcoholic beverages. The company reported a double beat, resulting in a +3.74 reaction score for shareholders.
In the report, they posted revenues of $4.31B, exceeding the expected $4.15B, and earnings per share met the market's expectations.
At the bottom of the list was the $11B diagnostics and research stock, Revvity $RVTY. Following a mixed report, the stock suffered a -1.78 reaction score.
Revenues came in line with market expectations, and earnings per share beat by 4 cents.
Now let's dive into the fundamentals and technicals π
KDP had its best earnings reaction ever π₯
Keurig Dr. Pepper had a +7.6% post-earnings reaction, and here's what happened:
The company is acquiring Peet's, the coffee company. Once this is complete, they will split into two companies: Global Coffee Co. and Beverage Co.
Sales and net income increased by 10.7% and 7.5%, respectively.
In addition to the strong report, the management team raised its forward sales guidance.
As you can see, this stock has been a hot mess for years. Ahead of this report, the bears had completed a massive distribution pattern, and the sellers looked poised to take complete control.
However, the price failed to hold below the breakdown level, and a scoop-n-score setup is now in play. As we learned from the legendary Brian Shannon, "from failed moves come fast moves in the opposite direction."
Fueling this rapid reversal is the best earnings reaction in the stock's history. Now, all the bears are scrambling for the exit.
So long as KDP holds above 28.50, the path of least resistance will likely remain higher for the foreseeable future.
RVTY suffered its second consecutive negative earnings reaction π»
Revvity had a -1.8% post-earnings reaction, and here's what happened:
Revenue increased a lousy 2% year-over-year, and earnings fell 8% over the same period.
Because they have nothing better to do with their cash, the board authorized a new $1B share repurchase program.
In addition to the disappointing earnings report, the management team issued weak forward guidance.
This company's fundamentals are quickly deteriorating, and the market knows it. Shareholders are consistently being punished for the earnings events, and the stock is on the cusp of resolving a massive distribution pattern.
We're watching the volume-weighted average price, anchored to the 2011 low, to confirm the top's resolution. Until that happens, we expect the stock to continue dramatically underperforming the market.
If and when RVTY decisively closes below 82, the path of least resistance will shift from sideways to lower for the foreseeable future.
Happy Technical Tuesday
-The Beat Team
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