Earning Season Update – February 8, 2019

To date, 66% of the companies in the S&P 500 have reported actual results for Q4 2018

 

In terms of earnings, the percentage of companies reporting actual EPS above estimates (71%) is equal to the five-year average. In aggregate, companies are reporting earnings that are 4.0% above the estimates, which is below the five-year average. Ten of the 11 sectors are reporting year-over-year earnings growth. Five sectors are reporting double-digit earnings growth, led by the Energy, Communication Services, and Industrials sectors.

In terms of revenues, the percentage of companies reporting actual revenues above estimates (62%) is above the five-year average. In aggregate, companies are reporting revenues that are 1.2% above the estimates, which is also above the five-year average. All 11 sectors are reporting year-over-year growth in revenues. Three sectors are reporting double-digit growth in revenues: Communications Services, Energy, and Real Estate.

Looking ahead, analysts predict a decline in earnings for the first quarter of 2019 and low single-digit growth in earnings for the second and third quarters of 2019.The forward 12-month P/E ratio is 15.8, which is below the five-year average but above the 10-year average.

During the week of the 11th, 65 S&P 500 companies (including two Dow 30 components) are scheduled to report results for the fourth quarter.

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