Earnings Review · 16 October 2026
The print
Revenue n/a. EPS $2.37 vs $2.26 expected.
How the market took it
On 2026-10-15 the shares closed at $142.09, +3.2% against the prior close of $137.64 (opening +1.6% from the prior close).
What changed versus going in
Earnings came in at $2.37 a share against $2.26 expected, a beat of 5% (+$0.11 a share).
Did the flow confirm the move?
Underlying money flow reads as distribution (21-day Chaikin Money Flow -0.05, five-day price change -0.6%, as of 2026-10-12, desk flow model).
Give the business its due
The business itself is genuinely strong: revenue growing about 13%, net margins near 29%, a narrow competitive moat, backed by a 14% return on equity.
Levels that matter
At $142.09 the shares sit 14% below the 52-week high of $165.84 and 38% above the low of $103.11 (62% of the way up the range).
The valuation lens
The shares trade close to our fair-value estimate (+10% margin of safety): fairly priced, little cushion for a miss. Fair value lands near $158 against a $142.09 share price, a margin of safety of about 10%. The trailing multiple sits around 17 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Excluded industry: Banks – Diversified. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
There is no direct compliant equivalent in the same industry on our screen, the honest answer is to screen a step wider rather than reach for a false substitute.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. One quarter, strong or soft, does not decide whether a holding is suitable.
This is analysis, not financial advice. Always manage your risk.
