Through Monday, roughly 2,400 companies had reported their Q1 2015 numbers since earnings season began on April 8th. Below is a chart showing the one-day change on earnings reaction days for every stock that has reported this season. For companies that report in the morning before the open, that trading day is its earnings reaction day. For companies that report after the close, the next trading day is its earnings reaction day.
We have broken up the distribution chart below by companies that beat EPS estimates (green), came inline (blue), and missed EPS estimates (red). 60.2% of companies have beaten EPS estimates this season, and the average company that has beaten has gained 1.55% on its report day. The one-day % changes for all companies that have beaten EPS this season are shown in green below. As you can see, the majority of beats have gained on their earnings reaction days, but a good chunk have fallen as well.
9.4% of companies have reported inline EPS this season (blue area), and these companies have averaged a decline of 1.19% on their earnings reaction days. Simply meeting expectations has not been good enough for investors.
30.3% of companies have missed EPS estimates this season, and their average one-day change on earnings reaction days has been -2.34%. As you can see in the red area below, not many stocks that missed estimates have gained on their report days.
We maintain an earnings tracker of every stock that reports their quarterly numbers each season. From our tracker database, below is a list of the stocks that have seen the biggest gains on their earnings reaction days this season. All of these stocks gained more than 18% on their reaction days, with Ryerson (RYI) up the most at 34.25%. Two other stocks gained more than 30% on their reaction days — Travelzoo (TZOO) and Nuverra Environmental Solutions (NES). The one S&P 500 stock that made the list of biggest winners is Netflix (NFLX) with its gain of 18.21%.
Below is a list of the best performing S&P 500 companies on their earnings reaction days this season. Some notable winners along with Netflix (NFLX) include Amazon (AMZN), Microsoft (MSFT), Philip Morris (PM) and Starbucks (SBUX).
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