Earnings Recap - August 06, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$XYZ** - Block, Inc. reported strong Q2 results with earnings and revenue surpassing expectations. The company also raised its FY2026 EPS guidance, prompting multiple analysts including Susquehanna, Cantor Fitzgerald, and Needham to maintain or raise price targets to $95-$100. This optimism reflects confidence in Block’s turnaround and growth prospects, driving positive sentiment in the stock. **$DGII** - Digi International posted record revenue in Q3 2026, beating estimates. The strong top-line performance underscores robust demand for its connectivity solutions, supporting a positive market reaction. **$BBSI** - Barrett Business Services delivered better-than-expected Q2 results, with solid earnings and revenue growth. The company’s operational efficiency and backlog strength contributed to the upbeat report. **$AMKR** - Amkor Technology’s Q2 margin improvement was noted as a real breakthrough, even as the stock price had declined earlier. The earnings beat and margin expansion indicate improving profitability in the semiconductor packaging segment. **$HIMX** - Data not available. **$MCRY** - Mercury Systems showed signs of a turnaround with accelerated growth in Q2, beating earnings estimates. This suggests improving demand in defense electronics, which may support a positive stock reaction. **$KMP** - Kemper Corporation beat EPS estimates by $0.11 despite revenue falling short. The earnings beat helped offset concerns about top-line weakness. **$RCL** - Data not available. **$FSLY** - Fastly reported earnings beat by $0.06 and revenue topped estimates, reflecting resilience in cloud services despite broader tech sector challenges. **$GRAIL** - Data not available. **$AXON** - Axon Enterprise delivered a strong beat and raised guidance, though the stock declined post-earnings, possibly due to valuation concerns despite solid fundamentals. **$WDC** - Western Digital reported Q4 earnings with a beat, but the stock fell due to a weak revenue outlook, highlighting ongoing challenges in the storage market. **$SNDK** - Sandisk beat Q4 earnings and forecasted upbeat quarterly revenue driven by AI demand, but the stock declined as investors questioned the durability of growth. **$MELI** - MercadoLibre’s Q2 results showed strengthening momentum in Latin America, with revenue growth supporting the thesis of a robust regional e-commerce flywheel. **$RL** - Ralph Lauren beat earnings by $0.35 and topped revenue estimates, driven by a 24% surge in Asia sales, signaling strong international demand. **$WPP** - The advertising giant soared on record H1 profit and margin beats, reflecting successful turnaround efforts and operational leverage. **$HIMX** - Data not available. ### Misses & Negative Reactions **$CELH** - Celsius Holdings missed Q2 earnings expectations as sales of its namesake brand declined, leading to a stock slump. The miss highlights challenges in maintaining growth momentum in the competitive beverage sector. **$FISV** - Fiserv’s stock dropped after the company cut its 2026 guidance despite beating Q2 earnings, signaling a difficult reset period for the payments technology provider. **$DATADOG** - Datadog beat earnings but plunged on a weak revenue outlook, raising concerns about SaaS demand sustainability amid macro uncertainties. **$ONTR** - Onterris reported a Q2 profit miss and cut guidance due to weak emergency work, causing an 18% after-hours drop. The guidance cut overshadowed margin gains and weighed heavily on sentiment. **$BMBL** - Bumble missed earnings by $1.08 despite topping revenue estimates, indicating margin pressures and slowing growth in the online dating market. **$ROOT** - Root beat EPS by $0.03 but revenue fell short, reflecting mixed operational results and ongoing challenges in scaling profitably. **$XRX** - Xeris Pharmaceuticals missed EPS by $0.19 despite revenue beating estimates, suggesting cost pressures or R&D expenses impacting profitability. **$BIOTE** - biote Corp missed earnings by $0.25 and revenue fell short, signaling operational difficulties. **$MNTN** - Data not available. **$ONTR** - See above. **$CELH** - See above. **$SNDK** - Despite earnings beat, Sandisk’s stock fell on concerns about sustainability of AI-driven demand. **$WDC** - See above. **$DATADOG** - See above. **$AMP** - Data not available. ## Reporting Today Companies expected to report earnings today: - **$ABNB** - Before market open - Analysts expect $1.25 EPS and $3.58 billion revenue. Watch for how Airbnb navigates travel demand trends and margin pressures amid a mixed analyst outlook. - **$RL** - Before market open - Key metrics include EPS beat by $0.35 and strong Asia sales growth of 24%. Investors will focus on international expansion and margin sustainability. - **$WPP** - Before market open - After record H1 profit and margin beats, guidance updates and advertising spend trends will be critical. - **$FSLY** - Before market open - Earnings beat noted; focus on revenue growth and cloud services demand. - **$KMP** - Before market open - EPS beat by $0.11 but revenue miss; margin trends and guidance will be key. - **$MCRY** - Before market open - Turnaround signs with accelerated growth; watch for updated outlook. - **$DGII** - Before market open - Record revenue reported; monitor demand trends in connectivity solutions. - **$BBSI** - Before market open - Solid earnings and revenue growth; operational efficiency updates expected. - **$AMKR** - Before market open - Margin improvement highlighted; focus on semiconductor packaging demand. - **$XYZ** - Before market open - Block’s strong Q2 and raised guidance set a positive tone. - **$CELH** - Before market open - Earnings miss and brand sales decline; watch for management commentary on turnaround plans. - **$FISV** - Before market open - Guidance cut despite earnings beat; investors will scrutinize reset strategy. - **$DATADOG** - Before market open - Revenue outlook weak despite earnings beat; SaaS demand sustainability in focus. - **$ONTR** - Before market open - Profit miss and guidance cut; margin and emergency work trends critical. - **$BMBL** - Before market open - Earnings miss; margin pressures and growth outlook key. - **$ROOT** - Before market open - Mixed results; scaling and profitability challenges to watch. - **$XRX** - Before market open - EPS miss; cost structure and pipeline updates important. - **$BIOTE** - Before market open - Earnings and revenue miss; operational challenges expected to be addressed. ## Earnings Themes - Revenue trends show a mixed picture with strong growth in tech-related companies like Block, Digi International, and MercadoLibre, while consumer discretionary names such as Celsius and Bumble face softness. - Margin pressures persist in several sectors, notably in payments (Fiserv), SaaS (Datadog), and consumer brands (Bumble, Celsius), although some semiconductor-related firms like Amkor and Mercury Systems report margin expansion. - Guidance sentiment is cautious overall, with companies like Fiserv and Onterris lowering outlooks amid macro uncertainties, while Block and WPP raise guidance reflecting confidence in their business models and market positioning. ## Earnings Trade Ideas 1. **Block, Inc. ($XYZ)** – With strong Q2 results and raised FY2026 EPS guidance, Block appears well-positioned for a turnaround and growth story. The consensus among analysts to raise price targets to $95-$100 supports a bullish stance. Investors might consider exposure to Block ahead of its continued execution on payments and fintech expansion. 2. **Amkor Technology ($AMKR)** – The margin breakthrough in Q2 combined with improving semiconductor demand suggests a potential value opportunity. Despite recent price weakness, the company’s operational improvements and sector tailwinds could support a rebound, making it an attractive trade idea for those seeking semiconductor exposure with improving fundamentals.