Earnings (General News) 02 (Oct 16 - Dec 25)

[winston]

1Q 2017 Earnings

As of Friday, 58% of S&P 500 companies had reported. The overall earnings growth rate continues to look better as more companies report.

Earnings grew in the first quarter at 12.5%. That's almost three times better than the fourth quarter. It's the first double digit earnings growth since 2011.

We've talked about the importance of revenue growth finally picking up, showing a pulse in demand. With that, 68% of the companies that have reported have beat on revenue estimates.

As we know, earnings estimates are set to be beaten. According to FactSet, over the past five years the average percentage of companies that beat earnings estimates is 68%.

We have 77% beating in the first quarter. And analysts are dialing down estimate downgrades for the second quarter at the smallest rate in five years.

Add to this, in the ultra-low rate environment, corporate America has been restructuring debt. So their ability to service debt is as good as it's been in a long time.

Bottom line: The performance and health of major publicly traded companies is as good as it's been since the financial crisis erupted nearly ten years ago. And a significant corporate tax rate is the "low hanging fruit" on the Trump agenda. That keeps stocks in an upward trajectory.

Source: Forbes

[winston]

Corporate profits just posted their biggest jump in five years

by Jeff Cox

Profits for S&P 500 companies are up nearly 15 percent, the best period since the third quarter of 2011.

The best sectors have been cyclicals, which speaks well for the economy's direction.

With close to 90 percent of S&P 500 firms reporting, about 72 percent have topped Wall Street estimates, according to S&P Capital IQ.

That's even better than the usual 66 percent that post beats and the second-best quarter in terms of exceeding estimates in the past six years.

Cyclical sectors led the way, with technology, financials and materials the best of the index's 11 major sectors.

Source: CNBC.com

http://www.cnbc.com/2017/05/12/corporat ... yptr=yahoo

[behappyalways]

earnings-party-fades-for-stock-market-in-second-quarter
https://www.bloomberg.com/gadfly/articl ... nd-quarter

[winston]

Goldman Sachs: 5 Trends to Watch in 2Q Earnings

By Mark Kolakowski

1. Slowing earnings growth,
2. Flat sales growth,
3. The impact of a tight labor market,
4. Downside risk in oil and
5. Continued leadership from big tech companies.

Source: Investopedia

http://www.investopedia.com/news/goldma ... z4miAwYeT3

[winston]

Four key sectors to watch closely this earnings season

Companies must report earnings growth to justify lofty stock prices after the major indexes have set repeated records this year

There are headwinds, including the strong dollar, a regular bugbear for companies that generate a lot of revenue overseas, and lower inflation, which gives companies less pricing power.

There is also the uncertainty surrounding many of President Donald Trump administration’s promised policy moves, notably on health care and tax reform.

1. Energy will rebound, but outlook is unclear
2. The FAANG factor
3. Banking on financials
4. The retail wreck

Source: MarketWatch

http://www.marketwatch.com/story/four-k ... yptr=yahoo

[winston]

Among firms in the S&P 500 index, 77 have reported earnings and 81 percent had results that exceeded expectations.

Source: The Standard

[winston]

2Q Earnings Above Expectations

More than halfway through reporting season, S&P 500 companies are on track to increase earnings by 10.8 percent, according to Thomson Reuters I/B/E/S.

Investors were also digesting data showing the U.S. economy accelerated in the second quarter as consumers ramped up spending and businesses invested more on equipment.

Source: Reuters

http://www.reuters.com/article/us-usa-s ... r%20Update

[winston]

The US quarterly earnings report was encouraging

With 419 members of the S&P 500 reporting results, 77 percent beat earnings estimates, mostly in the financial and technology sectors, while the energy sector underperformed.

Source: The Standard

[winston]

2Q Earnings

With results from 350 S&P 500 members already out, total earnings are up +11% from the same period last year on +5.9% higher revenues, with 74% beating EPS estimates and 68% beating revenue estimates.

For Q2 as a whole, combining the actual results with estimates for the still-to-come companies, total earnings are expected to be up +9.7% from the same period last year on +5.4% higher revenues.

This would be coming after +13.6% earnings growth on +7% higher revenues in Q1.

Source: Zack's

[winston]

2Q Earnings

With 95% of companies having reported second-quarter earnings, the estimate is for 12% growth over last year; revenues have increased by 5%.

Looking ahead, there could be a slight dip in earnings growth to the high single-digits, but they are expected to return to double-digit growth through the first quarter of 2019 as revenue averages 5% year-over-year growth in the same time frame.

Source: investor Place