Adobe beat expectations and got crushed. Lennar missed and rallied.
March 16, 2026
Earnings season is starting to slow down, but the reactions we’re seeing right now are anything but quiet.
Some companies are delivering better-than-expected results and still getting punished.
Others are missing estimates and rallying anyway.
That kind of divergence is exactly why we track these reactions so closely.
Let’s start by taking a look at the scoreboard.
*Click the image to enlarge it
Lennar $LEN missed expectations on both revenue and earnings per share, yet the stock rallied +2.6% in response to the report, snapping a brutal 10-quarter beatdown streak. This resulted in a +2.11 reaction score.
Meanwhile, Adobe $ADBE delivered a clean double beat but still fell -7.6%, marking the sixth negative earnings reaction in the last seven reports.
Finally, Ulta Beauty $ULTA closed Friday with a nasty -5.76 reaction score after posting mixed headline results. This was one of the largest beatdowns we've seen so far this earnings season.
Let’s take a closer look at what actually happened.
Lennar reported earnings after Thursday's closing bell, and the market was looking for $6.84B in revenue and $0.95 in EPS.
LEN came up short on both metrics, reporting $6.62B in revenue and $0.93 in EPS. Despite the double miss, the stock rallied +2.6% following the release.
Here are three key takeaways from the quarter:
Lennar generated $6.6B in total revenue and $229M in net income, with diluted EPS of $0.93.
New orders increased 1% year-over-year to 18,515 homes, while the average sales price declined 8% to $374,000 as incentives remained elevated.
The company expects to deliver roughly 20,000–21,000 homes next quarter with gross margins improving toward 15.5%–16%.
From a fundamental standpoint, the story remains the same: the housing market is still struggling with affordability constraints, elevated mortgage rates, and cautious consumer sentiment.
Management noted that incentives remain at around 14% as builders continue to use price concessions to maintain sales volume.
However, the long-term demand picture hasn’t changed. The U.S. still faces a structural housing shortage that will take years to resolve.
The technical setup is where things get more interesting.
As the chart shows, LEN has been carving out a massive distribution pattern for years. The stock recently broke below a major support level that had held multiple times since 2023.
That breakdown pushed the price to its lowest level since 2022.
Even though the stock rallied after earnings, the broader trend remains under pressure as long as LEN stays beneath that former support zone.
Adobe also reported after Thursday's closing bell. Investors were expecting $6.28B in revenue and $5.87 in EPS.
Instead, ADBE delivered a double beat with revenue of $6.40B and non-GAAP EPS of $6.06.
Despite those strong results, the stock fell 7.6% following the report.
Here are three key takeaways from the quarter:
Adobe reported record quarterly revenue of $6.40B, representing 12% year-over-year growth.
AI-first annual recurring revenue more than tripled year-over-year as adoption of new generative tools accelerated.
Operating cash flow hit a record $2.96B for the quarter.
Fundamentally, Adobe continues to benefit from the massive demand for AI-powered creative tools. Products like Firefly, Acrobat AI Assistant, and Adobe Express are driving strong user growth and accelerating adoption across both enterprise and consumer markets.
But none of that has mattered for the stock lately.
From a technical perspective, ADBE is now breaking down from a massive topping pattern that has been forming for several years.
The stock recently violated a key long-term support level that previously acted as both resistance and support multiple times over the past cycle.
That breakdown has now pushed the stock to its lowest level since 2019.
And the earnings reaction data reinforces the bearish momentum. Adobe has now been punished for six of the last seven earnings reports.
When a stock consistently sells off after good news, that's usually a good signal that something larger is fundamentally happening.
These are just two of the many earnings reactions we’re tracking right now.
Inside the Premium Beat Report, we analyze dozens of setups like these every week. We break down the charts, reaction history, and fundamental catalysts driving the biggest post-earnings moves.
If you want to see the full list of stocks our team is watching and preparing to trade around earnings, become a Premium Beat Report member today.
Thank you for reading,
-The Beat Team
P.S. Last Thursday, Steve Strazza didn’t just show a trade; he walked through his entire process LIVE.
Check out the replay and see exactly how Wave Trader finds the biggest moves early.
