NRG Energy $NRG didn't just beat earnings expectations, it torched them.
The company delivered a double beat, with a 53% upside earnings surprise and an 8% top-line beat.
The result? The stock exploded by over 26%, marking its best earnings-day reaction ever.
But this isn't just about a beat.
It's about a narrative shift.
NRG is quickly positioning itself as a dominant player in the emerging "AI Utility" trade.
They're providing the energy infrastructure needed to power the next generation of computing.
From a technical perspective, it doesn't get cleaner.
The stock gapped above a shelf of former highs and never looked back.
It was a textbook gap-n-go, coming out of a classic rounding base.
This was about as decisive a move as you'll ever see.
So what else did we learn from yesterday's earnings reactions? Let's dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
NRG Energy $NRG had the best reaction score after reporting a double beat.
The company reported revenues of $8.59B, versus the expected $7.92B, and earnings per share of $1.75, versus the expected $2.68.
Fox $FOX had the worst reaction score after reporting a double beat.
The company reported revenues of $4.37B, versus the expected $4.19B, and earnings per share of $1.10, versus the expected $0.92.
Now let's dive into the data and talk about what happened with these reports 👇
NRG had its best earnings reaction ever:
NRG Energy rallied 26.2% after this earnings report, and here's why:
Record first quarter financial results, with adjusted EPS up 84% and adjusted EBITDA up 30% year-over-year.
Management reaffirmed its 2025 financial guidance and indicated it is trending at the upper end of its guidance range.
They closed the acquisition of a 738 MW natural gas generation portfolio in Texas at a price well below new-build cost, strengthening their supply strategy in a key market.
The company is positioned to benefit from a long-term demand "supercycle" in U.S. power markets, driven by factors such as electrification, data centers, and onshoring.
This has been one of the hottest "AI Utilities" in the market, and we expect that to continue.
The stock has tremendous momentum, having rallied over 400% since bottoming in 2023.
If NRG is above 120, the path of least resistance is likely higher for the foreseeable future.
FOX has been rewarded for 5 consecutive earnings reports:
Fox rallied 4.3% after this earnings report, and here's why:
Advertising revenue grew by 43% year-over-year to $1.88B, driven by higher political advertising.
Management authorized a $7B stock repurchase program
Fox News has attracted over 200 new advertisers since the election, and they're continuing to spend.
This company dominates the media industry, and we expect that to continue.
Over the last year, the stock has rallied 100%.
After several months of churning sideways, the stock reclaimed the VWAP anchored to the all-time high on the heels of this earnings report.
If FOX is above 48, the path of least resistance will likely remain higher for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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