The backtest results reveal that MA has a 72.73% win rate at 3 and 30 days, rising to 81.82% at 10 days after earnings beats, with respective returns of 0.89%, 2.76%, and 3.70%. This indicates a consistently positive price reaction spanning from short to medium term following earnings surprises. The strongest upward movement peaks around day 57, suggesting a sustained bullish trend. Investors can leverage these insights by considering a holding period extending at least 10 to 30 days to capture optimal gains after MA's earnings beat events.

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The backtest results reveal that Financial Services Industry stocks showed minimal response following earnings beats, with a maximum return of only 0.85% observed 15 days after the event. This suggests that earnings beats do not significantly influence sector performance over the tested period.

The lack of notable impact may indicate that market participants already price in positive earnings surprises or that other factors dominate sector returns.

Investors might consider that relying on earnings beats alone in this industry offers limited advantage for short- to medium-term trading strategies.

The backtest results reveal that Mastercard's earnings beat leads to a positive impact on the Capital Markets industry, showing sustained gains over 34 days. Conversely, the Food Products industry experiences a prolonged negative impact over 44 days. This pattern reflects investor rotation toward growth and financial sectors amid strong consumer spending signals, while defensive sectors see reduced demand.

These results indicate a sector rotation effect driven by Mastercard's earnings surprises, benefiting financial markets but pressuring defensive staples.

Investors should consider overweighting Capital Markets and underweighting defensive sectors like Food Products following similar earnings beats.

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Backtest MA Earning Beats Expectations

Find all upcoming company earnings reports scheduled for jul 31 2025. Get details on which companies are reporting and their expected results.

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