Earnings season didn’t ease up on Friday - it came out swinging.
We got 19 fresh S&P 500 reactions spanning everything from high-flying growth names to steady defensive plays, plus a few cyclical heavyweights thrown in for good measure.
The tape saw monster upside moves from stocks delivering their best quarters in years… and brutal collapses from others that completely missed the market’s expectations, even when the headline numbers looked good.
From Healthcare to Staples, Software to Semis, this batch was a reminder that earnings season isn’t just about beating headline expectations - it’s about beating the market's expectations.
Let's break it all down!
Here are the latest earnings stats from the S&P 500 👇
*Click the image to enlarge it
The $150B drug manufacturer known for its HIV drug, Gilead Sciences $GILD, had a +4.09 reaction score after reporting a double beat. This was the best earnings reaction in 12 quarters.
They reported revenues of $7.08B, versus the expected $6.98B, and earnings per share of $2.01, versus the expected $1.96.
The $26B advertising agency stock, Trade Desk $TTD, had a nasty -11.10 reaction score after reporting a double beat. This was the worst earnings reaction in the stock's history.
Their revenue and EPS actuals met the market's expectations.
Now let's dive into the data and talk about the most important beats 👇
GILD had its best earnings reaction in 12 quarters 🔥
Gilead Sciences rallied 8.3% after this earnings report, and here's what happened:
Revenue rose 2% year-over-year, driven by their HIV, oncology, and liver disease products.
The FDA approved Yeztugo (lenacapavir) as the first twice-yearly HIV prevention, and they have launched it in the United States. This has the potential to be one of the most successful pharma products ever.
In addition to the solid quarter, the management team raised its full-year revenue and EPS guidance.
This was a sweet earnings reaction from one of the best technical setups in the Healthcare sector.
We love how the fundamentals and technicals are aligned here.
In addition, the stock is on the cusp of resolving a multi-decade accumulation pattern and resuming its long-term uptrend.
Remember, this was one of the darlings of the post-GFC biotech bubble, rallying from 16 to 123 in a few years and becoming one of the major players in the industry. This stock has the juice!
It's clear that the market has high expectations for Yeztugo, so we'll be closely monitoring its performance in the coming quarters.
If and when GILD closes above 123, the path of least resistance will decisively shift higher for the foreseeable future.
TTD had its worst earnings reaction ever 🩸
Trade Desk fell 38.6% after this earnings report, and here's what happened:
The long-time CFO, Laura Schenkein, unexpectedly stepped down. Historically, this has been a great leading indicator for companies facing significant challenges.
No GAAP net income outlook provided due to variability in stock-based compensation (ahem, ahem, the management team is paying itself much more than it deserves).
Competition from large peers like Amazon is sparking major concerns about their long-term business moat.
This earnings reaction was just about as bad as it gets for an S&P 500 component, especially for a stock that beat the headline expectations.
In addition to the nasty reaction, seeing the CFO unexpectedly step down adds to our conviction that something is terribly wrong with this company.
All of this together leads us to believe there is a new markdown phase on the horizon.
If and when TTD closes below 40, the path of least resistance will decisively shift from sideways to lower for the foreseeable future.
Thank you for reading
-The Beat Team
P.S.: When it comes to uncovering dirt on stocks, there's no one better than Herb Greenberg.
He recently joined JC Parets in a special livestream to discuss why he's always skeptical of stocks, and why you should be too.
