Even though we’re now a couple weeks into earnings season, just 78 companies have released their quarterly numbers since January 8th. Using our Earnings Screener (available to Bespoke Institutional members), we’re able to quickly see how stocks are performing in reaction to their earnings reports over any time period. Since January 8th, the 78 stocks that have reported have averaged a one-day change of 0.19% on their earnings reaction days. That’s pretty solid. Going back to 2001, the average stock that has reported has gained 0.09% on its earnings reaction day, so this season has been better than average so far.
While volatility measures have picked up slightly over the last couple of weeks, stocks that have reported earnings have actually been less volatile than normal. The 78 stocks that have reported since January 8th have averaged a one-day move of +/-3.57% on their earnings reaction days. Since 2001, the average stock that has reported has moved +/-5.63%.
While the numbers so far have been stable, we’ll really see how things shake out beginning next week when a few hundred more companies release earnings.