Earnings season encompasses a period of roughly six weeks every three months when the large majority of publicly traded companies report their quarterly numbers. The unofficial start to earnings season used to occur when Alcoa (AA) — a former Dow 30 stock — posted its quarterly numbers, as it was always the first big blue chip to report. In 2017, however, Alcoa (after spinning off part of the company) pushed back its quarterly earnings report date by a couple of weeks, so now we consider the unofficial start to earnings season to be when the first of the big Wall Street firms reports each quarter. This quarter, the start to earnings season will be on Monday, July 15th when Citigroup (C) reports. Click here to see our list of the most volatile stocks on earnings.
Wal-Mart’s (WMT) quarterly earnings report marks the unofficial end to earnings season. The Q1 2019 earnings reporting period ended when WMT reported back on May 16th.
Below we wanted to check up on how things went during the most recent earnings offseason. While the number of reports per day drops dramatically during the earnings offseason, there’s still a slow trickle of reports.
Bespoke subscribers have access to our Earnings Explorer tool that keeps investors on top of the important macro and micro trends related to earnings. Users can easily pull up historical quarterly reports for every US stock going back to 2001, and there’s a healthy amount of summary analysis as well. Below is a snapshot of the tool where we have pulled up all of the stocks that have reported since last earnings season ended on May 16th.
A total of 276 companies have reported earnings since May 16th. Sixty-eight percent of these companies reported better than expected EPS numbers, while 62% reported better than expected sales. In terms of guidance, only 8% of companies raised guidance while 13% lowered guidance. This means there was a guidance spread of -5 during the most recent earnings offseason.
In terms of price reaction to earnings, the average stock that has reported since May 16th has fallen 0.56% on its first trading day following its report. This negative price action from individual stocks in response to earnings is a divergence from the S&P 500’s gain of more than 4% during this offseason.
At the bottom of the snapshot, we show the stocks that performed best on their earnings reaction days this offseason. (Users of the tool see an interactive list of all 276 stocks that have reported along with their price action.) As shown, OMN was the best performing stock on earnings this offseason with a one-day gain of 54.36% on July 3rd. CDMO, CIEN, and DY all gained more than 25% on their earnings reaction days as well. If you haven’t used it yet, we urge you to try out our Earnings Explorer now. You can access it with a two-week free trial to Bespoke Institutional.