Crown Castle $CCI just had its best earnings reaction since Q2 2003. It was epic.
What happened?
The company announced the sale of its fiber optics segment for $8.5B, making Crown Castle the only public pure-play U.S. tower company.
The market loves the simplicity.
This sale will also make the operations more efficient and reduce costs.
With these extra funds, the company plans to implement a $3B share repurchase program.
Now, let's talk about what else happened.
Here are the latest earnings reactions from the S&P 500 👇
*click the image to enlarge it
As you can see, Crown Castle $CCI had the best reaction score, and Ulta Beauty $ULTA was a close 2nd place.
CCI reported $1.65B in revenues versus its $1.64B estimate and a loss of $10.97 per share versus the $0.44 estimate. This massive discrepancy in EPS was caused by the changes taking place at the company and shouldn't happen again.
ULTA reported $3.49B in revenues versus its $3.47B estimate and a gain of $7.13 per share versus the $8.46 estimate.
Now, let's dig into these reports and talk about their technical setups 👇
CCI had its best earnings reaction since Q2 2003:
Crown Castle reported mixed results, but the market loved them. The stock rallied 8.6% with a reaction score of 3.53.
The price has carved out a textbook double-bottom pattern and is reclaiming the VWAP anchored to the 2024 peak.
If CCI is above 99.50, the path of least resistance is higher for the foreseeable future.
ULTA has its best earnings reaction since Q1 2016:
Ulta Beauty reported a double beat, and the market loved it. The stock rallied 13.7% with a reaction score of 3.21.
The company's gross margin improved by 50 basis points, primarily due to lower inventory shrink.
They also issued optimistic guidance for 2025, which the market loved to hear.
The price is testing a key level of polarity going back nearly a decade. It's setting up for a potential "not a giant top" pattern, which has the potential to send the price toward the upper bound of the range.
If ULTA is above 315, the path of least resistance is higher for the foreseeable future.
