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 itโs 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 ๐
*Click the image to enlarge it
The only name on Tuesday's Beat Sheet was the $28B communication equipment stock, Hewlett Packard Enterprise $HPE. Following a mixed earnings report, shareholders were punished with a -1.14 reaction score.
HPE reported $9.30B in revenue, missing the expected $9.35B, and earnings per share of $0.65, beating the expected $0.59.
Let's talk about what else happened ๐
HPE snapped a 3 quarter beat streak๐ฉธ
Hewlett Packard Enterprise had a -3.3% post-earnings reaction, and here's what happened:
The company is dealing with unprecedented increases in component costs. For example, DRAM prices have more than doubled over the past year.
While there is a significant backlog, it won't be recognized until the second half of 2026 and beyond.
The real culprit with this report was the management team's forward guidance. They expect EPS of only $0.51-$0.55, a significant step down from this quarter's results. Additionally, they lowered the full-year cloud and AI revenue growth guidance from mid-single-digit to low double-digit to mid-to-high single-digit.
Since late last year, this stock has made zero progress.
Because earnings sentiment remained positive, we weren't convinced this was a distribution pattern.
However, the earnings sentiment turned sour this quarter. Now this is looking more like a top.
And with significant cuts in the management team's forward guidance, there's a fundamental catalyst for a technical breakdown.
Until further notice, we want to avoid HPE from the long side.
Thank you for reading,
-The Beat Team
P.S. Wave Trader keeps cranking out doubles, and Steve Strazza is going LIVE on Thursday at 4 pm ET to show you how this keeps happening.
