Our Earnings Explorer tool is a massive interactive database that contains historical information for thousands of companies and tens of thousands of quarterly earnings reports. You can start using the tool to hopefully trade more successfully around earnings with a two-week trial to our Bespoke Institutional package. Since mid-January when the most recent earnings season began, more than 1,700 companies have released their quarterly numbers. As shown in the snapshot from our Earnings Explorer page below, 75% of these companies beat consensus analyst EPS and sales estimates, while 15% raised forward guidance. On the negative side, just 4% of companies lowered guidance.
In terms of share price reactions to earnings reports, this season we saw the average stock open higher by 0.25% in reaction to its earnings report but then average a decline of 0.91% from the open to the close of trading. The gap higher of 0.25% and the open to close decline of 0.91% add up to a full-day decline of 0.67%. So even with relatively strong beat rates and positive guidance, investors have had a “sell the news” attitude over the last couple of months.
For those of you interested in individual stocks, below is a list of the 40 names that had the best one-day share-price reaction to earnings this season. You can use the “Stock Screen” page at our Earnings Explorer tool to generate lists just like the one below with a Bespoke Institutional membership. To make the cut, the stock had to gain at least 15% on its earnings reaction day like TAL Education (TAL), Digi International (DGII), NIC Inc (NIC), and Sonos (SONO) did. At the very top of the list is software company Teradata (TDC), which gained 37% on the day after reporting earnings on February 4th. Along with TDC, there were six additional companies that saw one-day gains of more than 30% in reaction to earnings this season. These six big winners were Glu Mobile (GLUU), RR Donnelley (RRD), Fisker (FSR), Bill.com (BILL), QuantumScape (QS), and PubMatic (PUBM).
The biggest stock to make the list was Netflix (NFLX) with a market cap of $243 billion and a one-day gain of 16.85%. That’s pretty good considering that the average stock to make the list has a market cap of just $12.8 billion. Other notables on the list include Canada Goose (GOOS), Hanesbrands (HBI), Groupon (GRPN), and Zillow (ZG).
Unfortunately, there were plenty of big losers this earnings season as well, and below is a list of the worst of the worst performers. The 40 stocks below all saw one-day drops of at least 14.9% on their recent earnings reaction days, with Ping Identity (PING) falling the most at -28%. Seven additional stocks fell more than 20% — MEDNAX (MD), Nautilus (NLS), Warrior Met Coal (HCC), TPI Composites (TPIC), SM Energy (SM), Zix Corp (ZIXI), and Twist Bioscience (TWST). Other notables on the list of big losers include Fastly (FSLY), Elastic (ESTC), Clarivate (CLVT), Harley-Davidson (HOG), Overstock.com (OSTK), and GoPro (GPRO). To dive deeper into our Earnings Explorer and access everything else Bespoke publishes throughout the trading week, start a two-week trial to our Bespoke Institutional package.