Earnings Day Gains Wiped Out, And Then Some

by: Bespoke Investment Group

Over at Bespoke Premium, we have just published our multi-page earnings season wrap-up report. In the report we highlighted that the average stock declined 0.47% on its report day this past earnings season, which is a pretty negative reading. Even more depressing is how poorly stocks have done since they reported. The average stock is now down 8.07% since the close on its report day. And it's not like just the companies that had bad reports have gone down. Even the companies that had the best reports have cratered.

Below is a list of the 42 S&P 500 stocks that went up more than 5% on their report days this season. For each stock, we also show how it has done since its close following its 5%+ move. As shown, the average stock that gained more than 5% on its report day has averaged a decline of 10% since then! So all of the good news has been completely wiped out and then some.

Apple (NASDAQ:AAPL) is a prime example. The company reported blowout numbers above and beyond all expectations and then rallied 8.87% on the day. But since that day, it is down 13.05%.

Xilinx (NASDAQ:XLNX) is another example. On April 26th, the stock went up 6.77% after it beat earnings estimates, beat revenue estimates and raised guidance. The stock hasn't had an up day since! XLNX is currently down 16 days in a row for a decline of 14.57%, which is the worst losing streak in the Russell 1,000.

From Whole Foods (WFM) to Intuitive Surgical (NASDAQ:ISRG) to Harley Davidson (NYSE:HOG) to Boeing (NYSE:BA), big name companies that had very positive earnings reports have given up all of their post earnings gains and then some. Talk about ugly.