Our Earnings Explorer tool allows users to track every single earnings report throughout earnings season to find individual stock opportunities or identify broader macro trends through our summary analysis. The tool contains data on more than 155,000 individual quarterly earnings reports from stocks dating back to 2002! There are countless ways for a user to filter and analyze the data to find what they’re looking for. It’s a must-try product that you can access with a two-week free trial to Bespoke Institutional.
Using our Earnings Explorer, we found that 417 companies had reported earnings since the current reporting period began on January 11th. As shown in the snapshot from the tool below, 84% of these companies beat bottom-line analyst EPS estimates, while 77% beat top-line sales estimates. In terms of guidance, 14% of companies have raised forward guidance while just 2% have lowered guidance.
What has been notable about this earnings season is the price action that stocks are seeing after they report their quarterly numbers. On average, stocks that have reported have gained 0.41% at their first open of trading after their earnings release. This means stocks are initially reacting positively to the earnings news. From the open to the close of trading after the initial gap higher, though, stocks that have reported have averaged a decline of 1.67%. Combining the opening gap and the open to close move, the average full one-day change for stocks reporting earnings stands at -1.28% this season. That’s a pretty bad number that’s indicative of a “sell the news” reaction.
The snapshot below also shows the stocks that have reacted the most positively to their earnings reports so far this season. Pot-stock company Aphria (APHA) has seen the best reaction of any company to report so far with a one-day gain of 21.1%. As it stands now, Netflix (NFLX) has seen the second-best reaction to earnings with its one-day gain of 16.85% on January 20th (it reported after the close on 1/19).
There have been ten stocks that have dropped more than 10% on their earnings reaction days this season, and we list them below. The three biggest losers have been software company Agilysis (AGYS), Pitney Bowes (PBI), and Harley Davidson (HOG). To use our Earnings Explorer tool and access everything else Bespoke’s research platform has to offer, start a two-week trial to Bespoke Institutional today.