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 on Monday came from Idexx Laboratories $IDXX, the third-largest diagnostics and research stock. The company reported a double beat, resulting in a +5.07 reaction score for shareholders.
In the report, they posted revenues of $1.11B, exceeding the expected $1.07B, and earnings per share came in nearly 30 cents above expectations.
At the bottom of the list was the $1T financial conglomerate, Berkshire Hathaway. Following a mixed report, the stock suffered a slightly negative reaction score.
Revenues came in slightly below expectations, but earnings per share beat by more than 50 cents.
Now let's dive into the fundamentals and technicals π
IDXX had its fourth consecutive positive earnings reaction π₯
Idexx Laboratories had a +14.8% post-earnings reaction, and here's what happened:
The top and bottom lines grew year-over-year by 13% and 21%, respectively.
Leading the way higher was the Idexx VetLab segment, which increased revenues by 18% year-over-year.
In addition to the tremendous report, the management team raised its forward revenue and earnings guidance.
Over the past year, this has been one of the hottest stocks in the S&P 500, fueled by consistent positive earnings reactions. The company's fundamentals are surging, and shareholders are being rewarded.
Coming into this report, the stock was in a tight coil after having its best earnings reaction ever last quarter. And as we expected, the bulls followed through with a gap-n-go to new all-time highs.
With the price now in uncharted territory, we expect the upside momentum to accelerate.
So long as IDXX holds above 707, the path of least resistance is decisively higher for the foreseeable future.
BRK.B suffered its third consecutive negative earnings reaction π»
Berkshire Hathaway had a -0.4% post-earnings reaction, and here's what happened:
Revenue growth is close to flat year-over-year, but operating earnings have grown over 30% over the same period.
Insurance, the largest segment of the business, grew its float by $5B year-over-year.
The management team doesn't issue forward guidance because Warren Buffett is a gangster and can do whatever he wants. ;)
Since Warren Buffett announced his retirement earlier this year, the stock has been in a persistent downtrend. With the price now testing a multi-year uptrend line, buyers must step in to prevent a further decline.
In addition to the technical downtrend, shareholders have been consistently punished by the company's earnings events for the first time in years.
While this is still one of our favorite names over longer timeframes, there isn't much to like about the short-term price action.
If and when BRK.B breaks its multi-year uptrend line, we expect the selling pressure to accelerate. Until then, the path of least resistance is sideways for the foreseeable future.
Happy Technical Tuesday
-The Beat Team
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