Earnings season continues to deliver surprises - both good and bad.
Yesterday, the market rewarded a telecom giant for another solid quarter while punishing one of the most well-known restaurant chains for falling short yet again.
It’s a reminder that even in a generally positive earnings backdrop, the reaction often depends more on sentiment and expectations than the raw numbers.
Let’s break down the latest moves and see what’s driving the market’s reactions.
Here are the latest S&P 500 earnings stats 👇
*Click the image to enlarge it
Verizon $VZ had a +2.69 reaction score after reporting a double beat.
They reported revenues of $34.50B, versus the expected $33.74B, and earnings per share of $1.22, versus the expected $1.19.
Domino's Pizza $DPZ had a -0.52 reaction score after reporting a double miss.
They reported revenues of $1.15B, which met the market's expectations, and earnings per share of $3.81, versus the expected $3.95.
Now let's dive into the data and talk about what happened with these reports 👇
VZ has been rewarded for 3 consecutive earnings reports 🔥
Verizon rallied 4% after this earnings report, and here's why:
Q2 consolidated revenue reached $34.5B, up 5.2% year-over-year, driven by wireless service and equipment revenue growth.
They surpassed 5M Fixed Wireless Access subscribers and posted 4 consecutive quarters of core prepaid growth.
Management also raised full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow.
Technically speaking, the stock is a hot mess.
However, the fundamentals are trending in the right direction.
With a dividend yield exceeding 6%, we believe this presents an attractive opportunity for income-seeking investors.
Quarter after quarter, the market has rewarded them for their earnings reports. We love that.
The price is in the process of resolving a massive bearish-to-bullish reversal pattern, and the VWAP anchored to the 2019 high is our line in the sand.
If and when VZ reclaims 46, the path of least resistance will shift from sideways to higher.
DPZ has been punished for 3 of its last 4 earnings reports 🩸
Domino's Pizza fell 0.8% after this earnings report, and here's why:
Net income declined 7.7% due to investment losses and higher taxes.
Net store growth totaled 178 globally in Q2, including 30 in the U.S. and 148 internationally.
Management left guidance unchanged, a disappointment to many who were looking for an increase.
The stock has carved out a textbook accumulation pattern for years now, but the bulls have failed to gain traction.
We've been stalking the setup for a while, but the company keeps getting punished for its earnings reports.
Until this changes, we see no reason for the stock to enter a new markup phase.
We expect DPZ to churn sideways for the foreseeable future.
Thank you for reading.
- The Beat Team
P.S.: Even as earnings dominate the headlines, there’s another story quietly unfolding…
While stocks are swinging on every report, the crypto market is building momentum toward what could be its next massive inflection point. 🚀
Now is your chance to capitalize on the opportunity!
