Earnings Recap - February 22, 2026 (Morning)

 ## Overnight Earnings Movers ### Beats & Positive Reactions **$HBHL** - Herbalife - Reported a significant revenue increase to $1.3 billion, up 7% year-over-year, driven by strong demand for its Pro2col product endorsed by Cristiano Ronaldo. The positive reception from the market reflects confidence in the brand's turnaround strategy. **$HBM** - Hudbay Minerals - Achieved record results with Q3 earnings of $0.45 per share, exceeding estimates by $0.15. The production ramp-up and cost efficiencies contributed to a positive market reaction, as investors anticipate further upside from operational improvements. ### Misses & Negative Reactions **$WDC** - Western Digital - Reported Q1 earnings of $0.30 per share, missing estimates by $0.10. The company cited ongoing pricing pressures in the storage market and a downgrade in its revenue outlook, leading to a decline in stock price as investors reassess the growth potential. **$ESAB** - ESAB Corp - Missed EPS estimates by $0.53, reporting disappointing results due to higher input costs and supply chain disruptions, which overshadowed a slight revenue beat. The stock faced a negative response as investors expressed concerns regarding margin pressures. ## Reporting Today - **$RUN** - After market - Key metrics to watch include revenue guidance and customer acquisition costs as the company continues to expand its virtual power plant initiatives. - **$TTD** - After market - Focus on revenue growth and customer retention metrics amid a challenging ad environment, as analysts expect insights into the company's strategy moving forward. ## Earnings Themes - **Revenue Trends**: Many companies are reporting solid revenue growth, particularly in sectors that are adapting to consumer demand shifts, such as health and wellness. - **Margin Pressures**: Companies like **$ESAB** and **$WDC** highlight ongoing challenges with input costs and pricing pressures affecting margins, which could influence investor sentiment across sectors. - **Guidance Sentiment**: There is a mixed sentiment regarding future guidance, with some companies raising expectations while others, like **$WDC**, are lowering forecasts, reflecting the uncertain macroeconomic environment. ## Earnings Trade Ideas - Consider buying shares of **$HBHL** after its strong earnings report and positive market reaction, as the turnaround momentum appears sustainable with new product endorsements. - For a speculative play, look at **$RUN** ahead of its earnings report; if guidance is strong, the stock could see significant upside given the expanding interest in renewable energy solutions.