87% of the Way Through Earnings
The number of S&P 500 companies reporting positive earnings surprises continues to rise, as 87% of S&P companies have now reported.
Of these companies, 75% have reported actual EPS above estimates, bringing the average after last week up from 73%. In aggregate, companies are reporting earnings that are 3.5% above estimates.
In terms of revenues, 70% of S&P 500 companies that have reported, have reported actual revenues above estimates. In line with last week. In aggregate, companies are reporting revenues that are 3.5% above the estimates, up from 2.5% last week.
"If 3.5% is the final percentage for the quarter, it will mark the third-highest revenue surprise percentage reported by the index since FactSet began tracking this metric in 2008."
"If 13.6% is the actual growth rate for the quarter, it will mark the sixth-straight quarter of year-over-year revenue growth above 10% for the index. All 11 sectors are reporting year-over-year growth in revenues, led by the Energy sector."
"Looking ahead, analysts expect earnings growth of 5.8% for Q3 2022 and 6.1% for Q4 2022. For CY 2022, analysts are predicting earnings growth of 8.9%.
The forward 12-month P/E ratio is 17.5, which is below the five-year average (18.6) but above the 10-year average (17.0). It is also above the forward P/E ratio of 15.8 recorded at the end of the second quarter (June 30), as the price of the index has increased while the forward EPS estimate has decreased since June 30.
During the upcoming week, 23 S&P 500 companies (including one Dow 30 component) are scheduled to report results for the second quarter."
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