Using our Earnings Explorer tool, we did a quick check today on how companies that have reported during this “off-season” have done. There have been 141 earnings reports since May 17th when the first quarter reporting period ended. Of these 141 reports, 71% reported stronger than expected EPS, while 62% reported stronger than expected sales. Only 6% have raised forward guidance while 11% have lowered guidance.
In terms of how company share prices have reacted to their reports this off-season, it has essentially been a bloodbath. The average stock that has reported has fallen 1.31% on its earnings reaction day, which is the first trading day following its earnings report. (For companies that report in the morning, its earnings reaction day is that trading day. For companies that report after the close, its earnings reaction day is the next trading day.)
Our rolling 3-month beat rate charts still show downtrends. While the bottom-line EPS beat rate remains nearly 3 points above its historical average, the top-line sales beat rate has recently dipped slightly below its average.
You can track the performance of individual stocks in reaction to earnings using our Earnings Explorer tool, but below is a list we pulled that shows the worst performing stocks in reaction to earnings since the “off-season” began on May 17th. Twenty-two of the 141 stocks that have reported this off-season have fallen more than 10% on their earnings reaction days. The list is littered with retailers like J. Jill (JILL), Canada Goose (GOOS), Abercrombie & Fitch (ANF), Foot Locker (FL), Kohl’s (KSS), Lowe’s (LOW), Urban Outfitters (URBN), and Nodstrom (JWN). Start a two-week free trial to Bespoke Institutional to unlock our Earnings Explorer tool and much more.