We’re now two weeks into the Q1 2020 earnings season, and just over 200 companies have reported their numbers so far.  The average one-day price change for the stocks that have reported earnings so far this season has been a gain of 0.89%.  That’s much stronger than the average one-day gain of 0.06% seen for all stocks that have reported earnings since 2001.

As shown below, stocks that have beaten EPS estimates this season have averaged a one-day price gain of 2.16% on their earnings reaction days.  That’s stronger than the average one-day gain of 1.89% seen on earnings reaction days for all stocks that have reported since 2001.  Stocks that have missed EPS estimates this season have seen a one-day decline of 0.72% on their earnings reaction days.  Historically, the average stock that has missed EPS has fallen 3.56% on its earnings reaction day, so this season’s decline of just 0.72% suggests that investors are basically giving a pass to companies missing estimates in Q1.  Read our weekly Bespoke Report newsletter published every Friday with a two-week free trial to Bespoke Premium.

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