The two charts below are available to our subscribers on our Earnings Explorer page. They show the rolling 3-month earnings and sales beat rates for US stocks reporting earnings. Monitoring these charts is a good way to track how companies are doing relative to expectations over time. As shown, the earnings beat rate has bounced a bit over the last month after trending lower over the prior 10 months dating back to the middle of 2018. The sales beat rate hasn’t bounced as much, but it has stabilized around its long-term average of 56.45%. Start a two-week free trial to Bespoke Institutional to access our interactive Earnings Explorer and receive ALL of our premium equity research.
Last week, 123 companies reported their Q2 earnings results, and 70% of them reported stronger than expected EPS. But while the bottom-line beat rate was strong at 70%, the top-line sales beat rate was much weaker at 56%.
The average stock that reported last week traded well in reaction to the news, gaining an average of 0.56% on its earnings reaction day. There were 20 stocks that gained more than 5%, and we have provided a snapshot of them from our website below. Seattle Genetics (SGEN) was the biggest earnings winner last week with a gain of 19.11% last Wednesday. CrowdStrike (CRWD) was the second biggest winner with a gain of 14.8% last Friday. Skechers (SKX), Gentex (GNTX), and Marten Transport (MRTN) round out the top five with one-day moves of more than 9.2%. Other notables on the list of last week’s biggest earnings winners include Cintas (CTAS), Philip Morris International (PM), State Street (STT), and Union Pacific (UNP).
Eagle Bancorp (EGBN) was last week’s biggest earnings loser with a one-day decline of 26.75% on Thursday. ADTRAN (ADTN) was second worst with a decline of 23.32%, followed by Ericsson (ERIC) and Insteel Industries (IIIN). Netflix (NFLX) was the 5th biggest loser on earnings last week with its one-day drop of 10.27%. CSX and Limelight Networks (LLNW) were the other two stocks that fell more than 10%. (Subscribers can use our Earnings Explorer to see the list of biggest earnings winners and losers over any time frame.)