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
*Click the image to enlarge it
The only earnings reaction on Tuesday came from the $69B specialty retailer, AutoZone $AZO. The stock fell in absolute terms, but had a slightly positive reaction score.
The company posted revenues of $6.24B, versus the expected $6.25B, and earnings per share of $48.71, versus the expected $50.73.
Now let's dive into the fundamentals and technicals π
AZO suffered its 3rd consecutive negative earnings reaction π»
AutoZonehad a -0.02% post-earnings reaction, and here's what happened:
Year-over-year, net sales increased by 6.9% and net income grew by 1.3%.
To fuel future growth, the management team is aggressively opening new stores. In the last quarter, they opened 90 net new domestic stores and 51 international stores.
In addition to the quarterly report, the management team said they expect to open 325 to 350 new stores in the Americas next year. This should start hitting the income statement in the second half of 2026.
We wrote about this stock in Sunday's column of the Weekly Beat, highlighting how the company has been consistently missing its headline expectations. Sure enough, they did it again this quarter, and shareholders were punished for it.
These negative fundamental events have been met with consistent negative earnings reactions and poor relative performance.
We also talked about how the post-earnings drift is almost always negative. That's why we expect the price to retest the shelf of former highs from earlier this year.
We expect AZO to retest 3,916, hold the line, and churn sideways.
Happy Hump Day
-The Beat Team
P.S. On Monday, Steve Strazza and JC Parets hosted the Mid-Month Strategy Session for All Star Charts. During the call, they delved into all things small-caps, including their favorite trade ideas.
