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alpha-DNA: Earnings Season is Off and Running

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Earnings season is picking up steam. This week and next week are the two busiest weeks with the most firms announcing earnings. Markets have been wary about the potential for weak earnings this cycle. However, so far, earnings have been a little stronger than expected. Many pundits have been forecasting slower earnings growth and potential signs of weakness. So far, those signs have been evident in pockets but mostly muted.

The stocks in our portfolio continue to show earnings strength. We have had 22 stocks in our bullish portfolio report thru July 26th. Of those 22, 18 of them have beaten on EPS. Only three have missed on EPS while one met exactly on expectations. On the Revenue expectations side, we had 11 have a material beat on Revenue. We had only 2 stocks have a material miss on Revenue expectations. The remaining 9 stocks were in line to expectations (ie, +/- 1%).

On forward guidance, we had 3 stocks provide positive guidance and 3 stocks provided downside guidance. We’d prefer this ratio to be a little higher but we are only 1/3rd of the way thru earnings season.

The markets are making all time highs while shaking off concerns about slowing growth. Hopefully, that trend will persist and our portfolio will benefit from finding the best out-performers!

As usual, you want to see green on the report as that indicates our bias towards the surprise was achieved.

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Alpha-DNA-Earnings_Reported_during_Q3_2019_thru_July_26_2019
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