Post-COVID Earnings Triple Plays

Earnings season continues to chug along, and so far this season there have been a total of 18 triple plays. Triple plays are essentially the cream of the crop on earnings, in which a company beats EPS and revenue estimates, in addition to raising guidance. Below is a list of the 18 triple plays so far this season, along with how their share prices performed on the day they reported the triple play.

On average, triple plays have gained 3.7% on their earnings reaction days this season, which is still strong, but it’s slightly less than they’ve normally gained throughout history.

Given the massive changes to the economy due to the coronavirus, one might not expect more cyclical names to report strong quarters, but that has not necessarily been the case. The biggest representation has come from the Technology space. Half of the triple plays so far this earnings season have been technology companies.

Five of these —Teradyne (TER), Silicon Motion (SIMO), Monolithic Power (MPWR), M/A Com Tech (MTSI), and NeoPhotonics (NPTN) — are semiconductor names. Additionally, Prologis (PLD), which was the first triple play of earnings season, reported a solid quarter despite the REIT’s business primarily being exposed to logistics and supply chain facilities.

Aegion (AEG) and S&P Global (SPGI), from the cyclical Industrial and Financial sectors, also reported strong quarters in spite of COVID-19. Other triple plays come from areas of the economy that are unsurprisingly holding up in the COVID economy, including a couple of Health Care names —USANA (USNA) and Anthem (ANTM) — and consumer staples stocks like Keurig Dr Pepper (KDP).

Perhaps the most expected triple play so far this season has come from the cleaning product manufacturer Clorox (CLX).

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Moon Kil Woong 6 months ago Contributor's comment

I think earning from now on will play out negative for most companies per earnings releases so far which are the stronger in a lot of ways than most other companies. Even good news will have the pall of next quarters forecasts baked into them. One can't look at the regular historicals for a good read on this.