Best and Worst Performing Stocks This Earnings Season

While 77% of US companies have beaten earnings per share estimates so far this earnings season, the average stock that has reported has actually declined 0.72% on its report day. (For stocks that report after the close, we use its next-day change, and for stocks that report before the open, we use that day's change.) Heading into earnings season, the market was at extreme overbought levels, and companies are finding it difficult to see an increase in share prices even when their earnings reports blow away the numbers.

Some companies have managed to do well, however. In the first table below, we highlight all of the US companies that have gone up more than 5% on their earnings report days (S&P 500 companies are outlined in black). As shown, Lexmark (LXK) has seen the biggest gain at 15.91%, followed by Renaissance Learning (RLRN) (15.67%), Helen of Troy (HELE) (12.5%), Werner Enterprises (WERN) (12.38%), and Lufkin Industries (LUFK). Other notables on the list of big winners include Gannett (GCI), Tempur-Pedic (TPX), CSX, Bank of New York (BK), and Harley-Davidson (HOG).

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More companies have gone down more than 5% on their report days than have gone up more than 5%. Volterra Semi (VLTR) has had the worst reaction to its earnings report with a one-day decline of 18.42%. Boston Scientific (BSX), Great A&P Tea (GAP), McClatchy (MNI), MGIC (MTG), Brinker (EAT), Nokia (NOK), and Domino's Pizza (DPZ) have all gone down more than 10% on their report days this earnings season.

Comments

[BlueOkie:]

Revenues and EPS are two very important indicators. How they beat (cost cutting or rising sales) and what they see for future also effect stock price. Ofcourse, how good are the predictions?

Oct 22 08:18 AM

[John Gordon:]

We monitor the chain restaurant universe. In viewing research and press reports, we hope someday corporate earnings analytics can be improved by the following:

1. Less reliance on the prior year percentage change and more focus on the trend and the dollar change. The old saying, you take dollars to the bank and not percentages still rings true. For example, same store sales could be compared to the 2 year, 5 year, etc. compound annual growth rate (CAGR). All those numbers are available.

2. For retailers/restaurants with multiple units, dollar profit per company owned or franchised store would be an improvement. Companies may get credit in the business press for a revenue increase, while per store profit contribution could be falling.

All these are non-GAAP numbers that are available and could be reported.

John A. Gordon
Chain Restaurant Earnings and Economics Experts
pacificmanagementconsu...

Oct 22 09:08 AM