Constellation Energy $CEG just released another blockbuster earnings report.
The company exceeded the top end of its guidance range for the second consecutive year.
In addition, they are returning money to shareholders at a rapid clip. Last year, they repurchased $1B in common stock.
Moreover, CEG increased the annual dividend by 25% last year and plans to grow the dividend by another 10% this year.
For the 11th consecutive year, they were the United States' largest producer of emissions-free energy.
It's safe to say that Constellation is the Nvidia of "AI Utilities." It's a fantastic company!
Let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
As you can see, Entergy had the best earnings reaction on Tuesday, and Medtronic had the worst.
Constellation Energy was the largest company to report. It reported mixed results and rallied 2.6% with a reaction score of 0.3. It was muted.
Now, let's dig into the data and talk about some of the best and worst earnings reactions 👇
CEG is flirting with new highs after its earnings report:
Since Constellation Energy went public in early 2022, the stock has rallied nearly 1,000%.
Along the way, it has made a ton of new all-time highs. We think it's about to make more.
If CEG rallies 6% (which could happen in a heartbeat), the stock will be at new all-time highs. All eyes are on the pivot highs from last month.
EXPD had its best earnings reaction since Q4 2022:
Expeditors International reported a double beat and rallied nearly 4% with a reaction score of 2.8. It was a great report.
The company grew revenues by 30% Y/Y, primarily driven by strong Asian demand (China). They haven't grown like this in years.
As you can see, the stock has been in a chopsolidation for years. The price action has been yucky!
However, new highs are approaching after this report sparked some upside momentum above a key retracement level.
If EXPD is above 118, the path of least resistance points to new all-time highs.
GPC looks vulnerable here:
Genuine Parts reported a double beat but fell by 2.6%, with a reaction score of -1.9. This came after the stock's worst earnings reaction ever in Q4 2024.
The company's earnings declined 50% Y/Y, and their margins are collapsing. It's a disaster.
In addition, they issued weak guidance for 2025. This was like adding fuel to the fire.
As you can see, the stock is flirting with the resolution of a multi-year distribution pattern. It looks ready to break lower.
If and when GPC closes below 115, the path of least resistance will shift from sideways to lower.
MDT had its worst earnings reaction since Q4 2016:
Medtronic reported mixed results and fell 7.3% with a reaction score of -6.6. It was a terrible reaction.
The surgical segment's revenues and earnings declined for the first time in years. This surprised the market terribly.
In addition, the company issued weaker-than-expected guidance. The market didn't like it one bit.
We expect MDT to continue trading below 92 in a range for the foreseeable future.
