Big Day For Triple Plays

Since last night’s close, there have been five triple plays. A triple play is when a company reports quarterly earnings with EPS and sales above analyst estimates and raised guidance. Typically this is a healthy sign for a company’s fundamentals with price reacting accordingly. 

Of the five that reported in the past day, Teradyne (TER) has seen the best response, up over 20% on the day as of this writing. TER has been forming an ascending triangle with this recent move leading to a breakout. TER has also been a strong company on earnings with both EPS and sales beats for every quarter since 2013.  Last night’s 4 cent EPS beat and $27.3 mm revenue beat marked the ninth triple play in that time. On average, each of these triple plays was responded to with a 2.8% gain, but today’s performance has left this average in the dust. Additionally, the company commented that the growth of 5G was a key factor in the strong quarter, similar to the first triple plays of this earnings season.

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Also out last night, reporting its second straight triple play was Manhattan Associates (MANH). MANH has consistently reported strong quarters with the last EPS miss being back in 2009. Additionally, it is no stranger to triple plays with ten prior occurrences. EPS for the most recent quarter came in at $0.42 versus estimates of $0.35 while revenues were at $154.3 million, $8.3 million above estimates. Ahead of this report, the software and services company reached a 52-week high; also bringing it to extremely overbought levels.In reaction today, the stock has continued to move deeper into overbought territory with a 19% gain.

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Ahead of Facebook’s (FB) quarter out later today, another social media giant, Snapchat (SNAP), reported last night. Though EPS was still negative (-$0.06), it was also the second smallest loss to date and the second largest revenue per quarter at $388.02 million.SNAP has been in a downtrend since its IPO but earlier this year the stock managed to break out of this downtrend. The 16% gain today has brought the stock further away from this downtrend. Of the ten quarterly reports for SNAP, today is only the third time that the stock has experienced a positive full-day change.

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