The 7 Best Large-Cap Earnings Reports This Summer

August 21, 2016 by Paul Ausick

Now that the summer 2016 earnings season is mostly behind us, it seems like a good time to look back and see which of the S&P 500 stocks posted the best earnings reports for the previous quarter.

Now “best” is a relative term and in this review we looked for stocks that got a sharp boost immediately after reporting quarterly earnings and then managed to hold on to or improve on those gains. In addition, the gain has to have been driven primarily by earnings, not improvements to the balance sheet, an acquisition, or a single successful/unsuccessful drug trial.

The best performing stock over the past 30 days has been NetApp Inc. (NASDAQ: NTAP), which saw its share price jump from $28.85 at Wednesday’s close to an intraday high of $33.90 on Thursday after reporting earnings per share (EPS) more than 27% higher than analysts were expecting. First fiscal quarter revenues came in below the year-ago quarter, but also beat expectations. The stock gained about 17.5% on Thursday and has gained nearly 31% in the past 30 days. For the past 90 days, shares are up nearly 46%.

Nordstrom Inc. (NYSE: JWN) stock has added more than 26% in the past month and nearly 18% since reporting earnings on August 11. Nordstrom posted $0.67 in EPS on $3.65 billion in revenue. The consensus estimates from Thomson Reuters had called for $0.56 in EPS on revenue of $3.68 billion. In the same period of last year, the retailer reported EPS of $0.93 and $3.7 billion in revenue. Over the past 90 days, the stock has gained 41.7%. Nordstrom also boosted its EPS estimate for the fiscal year from a prior range of $2.50 to $2.70 to a new range of $2.60 to $2.75.

When Urban Outfitters Inc. (NASDAQ: URBN) reported earnings on Wednesday, the teen retailer beat both top and bottom line estimates. The stock jumped more than 15% and tacked on a 52-week high on Friday, just for good measure. The company reported EPS of $0.66 on $890 million in revenue for its fiscal second quarter, which compares to consensus estimates of $0.56 in EPS and $886.84 million in revenue. A year ago, Urban Outfitters reported $0.52 in EPS and $867.46 million in revenue. Over the past 30 days shares have climbed nearly 24%, and the stock trades more than 31% higher than it did just three months ago.

GPS maker Garmin Ltd. (NASDAQ: GRMN) reported quarterly results on July 27 and the stock shot up 12% that day, and it has added nearly another 6% since. Revenues, gross margins and EPS were all higher. The largest percentage gain came in the company’s fitness division, where revenues rose 34%. Over the past 30 days, shares have gained nearly 20%, and the stock trades higher by more than 39% over the past 90 days.

Shares of financial services firm State Street Corp. (NYSE: STT) gained more than 12% when the company reported earnings on July 27. The company’s fee revenues rose sharply, as did the asset servicing business and asset management fees. Boosting results even higher were lower expenses and a settlement with federal authorities related to allegations of hidden markups on currency trades. Over the past 30 days, shares are up 19.5%, higher than the 90-day gain of about 14.5%.

Macy’s Inc. (NYSE: M) shares saw a gain of 17% when the retailer reported quarterly results on August 11. Over the past 30 days, Macy’s stock has risen 14% and is up nearly 32% for the past 90 days. Macy’s posted EPS of $0.54 on $5.87 billion in revenue last quarter. Consensus estimates had called for $0.45 in EPS on $5.74 billion in revenue.

Shares of packaging company Ball Corp. (NYSE: BLL) have risen 13.8% over the past 30 days, with a 12% gain on August 4 alone, the day the company reported quarterly results. Analysts at Jefferies added the company to its Franchise Picks list on August 8. While some of the stock’s gains may have come as short sellers raced for the exits, the share price has now topped $80 for 10 consecutive days. Over the past 90 days, shares have added 12.6%.

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