In yesterday's Daily Beat, we highlighted a dramatic split in Aerospace & Defense - with one stock posting its best reaction in decades while another cratered with its worst in years.
During yesterday's trading session, we got 28 new market reactions. The takeaway? Déjà vu, but this time in Semiconductors.
One name ripped to all-time highs with its best earnings reaction ever, while another printed a Death Candle after its worst post-earnings reaction since 2008.
Meanwhile, Industrials, Utilities, and even Packaged Foods joined the party with double-digit pops, while a handful of names quietly set fresh records for consecutive negative reactions.
Let’s break it down…
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
TE Connectivity $TEL had a +5.70 reaction score after reporting a double beat.
They reported revenues of $4.53B, versus the expected $4.32B, and earnings per share of $2.27, versus the expected $2.08.
Capital One $COF had a -0.34 reaction score after reporting mixed results. However, the stock rallied in absolute terms for its 12th consecutive positive earnings reaction. This is the 2nd-best streak in the entire S&P 500, behind Tapestry $TPR (15).
They reported revenues of $12.49B, versus the expected $12.72B, and earnings per share of $5.48, versus the expected $4.04.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
Otis Worldwide $OTIS had a -9.2 reaction score after reporting mixed results. This was the 8th consecutive negative earnings reaction and the worst reaction ever.
They reported revenues of $3.60B, versus the expected $3.70B, and earnings per share of $1.05, versus the expected $1.03.
Texas Instruments $TXN had a -7.18 reaction score after reporting a double beat.
They reported revenues of $4.45B, versus the expected $4.36B, and earnings per share of $1.41, versus the expected $1.36.
Now let's dive into the data and talk about what happened with these reports 👇
TEL had its best earnings reaction ever 🔥
TE Connectivity rallied 12% after this earnings report, and here's why:
Achieved record sales of $4.53B, up 14% reported and 9% organically year-over-year, led by the Industrial segment.
Adjusted EPS reached $2.27, up 19% year-over-year, exceeding guidance. In addition, they reported record free cash flow and returned $1.5B to shareholders.
To make a great quarter even better, management is continuing to guide toward double-digit EPS growth.
This was an incredible report, and an even better reaction.
It's not every day we see an S&P 500 stock post its best earnings reaction ever. When it does happen, we pay close attention.
Price is approaching a key Fibonacci extension level, a logical level for sellers to step in. However, we think any and all weakness will be quickly bought.
The path of least resistance for TEL is decisively higher for the foreseeable future.
TXN had its worst earnings reaction since 2008 🩸
Texas Instruments fell 13.3% after this earnings report, and here's why:
Revenue reached $4.45 billion, up 9% sequentially and 16% year-over-year.
$6.7 billion was returned to shareholders over the past 12 months through dividends and stock repurchases.
The biggest concern was guidance... management is extremely cautious amid the ongoing Tariff War.
The stock found resistance at last year's peak and got obliterated.
It closed yesterday with what we like to call a Death Candle. This is as bad as it gets.
We expect the selling pressure to continue as the longs sprint for the exits.
The path of least resistance for TXN is decisively lower for the foreseeable future.
Thank you for reading.
- The Beat Team
P.S.: Louis nailed the Ethereum trade, but now he's rotating to a different crypto with even more potential firepower.
