So far 84 percent of the companies in S&P 500 have reported their earnings. Let’s take a look at the key takeaways,
- So far, 72 percent of the companies that reported actual results, reported better than expected earnings which are by an average 6.3 percent higher than the estimates. Only 17 percent of the companies reported worse than estimated earnings. Average earnings growth rate so far is 10.1 percent. Ten sectors have reported earnings growth with energy sector leading the way.
- 70 percent of the companies reported higher sales than estimated.
- Best performing sector has been information technology, where 85 percent of the companies reported better than expected earnings, followed by Healthcare (84 percent), Utilities (81 percent), Industrials (78 percent), Financials (78 percent), and Real Estate (74 percent).
- The worst performers have been Telecom and the Energy sector, where only 50 percent and 53 percent of the companies have beaten EPS estimates. However, earnings growth was biggest for the energy sector due to rise in oil price.
- In terms of sales, best performing sector has been Telecom, where all companies have beaten their sales estimates, followed by Information technology (83 percent), and Materials (82 percent).
- The worst performer was Utilities where only 44 percent of the companies have beaten sales estimates.
- On an aggregate, companies beat revenue estimates by 0.5 percent. The Financials (+2.0%) and Energy (+1.5%) sectors are reporting the largest upside aggregate differences between actual sales and estimated sales, while the Utilities (-0.5%) sector is reporting the largest downside aggregate difference between actual sales and estimated sales.
Better than expected earnings have pushed all three, S&P 500, Dow Jones Industrial Average, and NASDAQ to all-time highs. S&P 500 is currently trading at 2475, while DOW is at 22092, and NASDAQ at 6351.
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