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Where Does the S&P 500 Stand a Week Into Earnings

Jan 22, 2019

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All Data and Information as of 1/18/2018 End Of Day

 

  • CY4Q2018 earnings are our focus today as 56 companies in the S&P 500, or 11.2% of constituents in the benchmark index, have reported quarterly financials. US stock earnings are under a microscope this season as analysts search for indicators of expected slowed global growth in some of the world’s largest companies.

S&P 500 CY4Q2018 Earnings Release Sector Breakdown

Sector Above Match Below Average Surprise Reported Index
Industrials 89% 0% 11% 6% 9 69
Financials 61% 4% 35% 1% 23 68
Information Technology 67% 17% 17% 4% 6 68
Consumer Discretionary 86% 14% 0% 8% 7 64
Health Care 100% 0% 0% 2% 1 62
Consumer Staples 83% 0% 17% 8% 6 33
Real Estate N/A N/A N/A N/A 0 32
Energy 0% 50% 50% -1% 2 30
Utilities N/A N/A N/A N/A 0 27
Materials 100% 0% 0% 5% 1 25
Communication Services 100% 0% 0% 25% 1 22
S&P 500 Total 71% 7% 21% 4% 56 500

Source: Capital IQ

 

  • On an aggregate basis, 71% of stocks in the S&P 500 to report earnings thus far have generated an earnings beat, surpassing analysts’ consensus by an average of 4%. 7% of companies in the S&P 500 to report earnings so far have met analyst expectations while 21% of the companies that have reported earnings have fallen short of analyst expectations.  
     
  • Additionally, 78.6% of the 56 stocks in the S&P 500 to report CY4Q2018 earnings have generated double-digit EPS growth while 1 company has recorded EPS growth better than 100%.

S&P 500 Sector Index Multiples, Yields, and Projected EPS Growth

  Fwd 12M P/E Ratio T12M P/E Ratio T12M EBIT/EV T12M FCF Yield FWD 12M EPS Growth (%) 3 Year Fwd EPS CAGR
S&P 500 INDUSTRIALS INDEX 14.38x 16.32x 5.00% 3.27% 13.56% 12.20%
S&P 500 FINANCIALS INDEX 11.29x 12.96x 8.67% 8.18% 14.81% 11.84%
S&P 500 INFO TECH INDEX 15.92x 18.34x 6.41% 5.73% 15.19% 10.83%
S&P 500 CONS DISCRET INDEX 18.82x 22.31x 4.78% 4.15% 18.57% 13.94%
S&P 500 HEALTH CARE INDEX 15.25x 20.24x 4.68% 4.48% 32.76% 16.78%
S&P 500 CONS STAPLES INDEX 17.02x 18.31x 5.76% 3.88% 7.55% 6.29%
S&P 500 ENERGY INDEX 16.56x 17.49x 5.48% 3.24% 5.60% 10.58%
S&P 500 UTILITIES INDEX 16.95x 17.24x 4.27% -1.51% 1.72% 4.04%
S&P 500 MATERIALS INDEX 14.35x 15.33x 5.78% 4.93% 6.83% 8.95%
S&P 500 COMM SVC INDEX 15.66x 19.14x 5.51% 4.30% 22.25% 14.64%

Source: Capital IQ

 

  • On a sector basis, S&P 500 industrials stocks appear to be posting the most consistent CY4Q2018 earnings beats with 89% of the 9 companies to report surpassing analysts’ consensus. These 9 industrials companies, which represent 13% of the total S&P 500 sector, have generated an average surprise of 6%.
     
  • Financials stocks lag other S&P 500 sectors so far in CY4Q2018 earnings season with only 61% of the 23 S&P 500 financials stocks beating analysts’ consensus EPS forecast. The S&P 500 financials sector is also the most reported on sector so far this earnings season with 33.8% of companies having reported CY4Q2018 earnings.
     
  • Consumer Staples stocks appear to be generating the widest earnings beats this season, recording an average EPS surprise of 8%.  83% of the 9 consumer staples companies to report CY4Q2018 earnings have surpassed analysts’ consensus expectations.

S&P 500 Sector Index ROE Dupont Breakdown

  T12M ROE T12M Operating Margin T12M Net Profit Margin T12M Sales / Assets Assets / Equity
S&P 500 INDUSTRIALS INDEX 18.27% 9.53% 6.43% 0.71x 3.87x
S&P 500 FINANCIALS INDEX 12.50% 22.79% 19.23% 0.07x 8.13x
S&P 500 INFO TECH INDEX 27.40% 23.87% 16.51% 0.59x 2.77x
S&P 500 CONS DISCRET INDEX 25.61% 8.38% 5.76% 1.01x 4.26x
S&P 500 HEALTH CARE INDEX 13.54% 9.45% 5.69% 0.85x 2.72x
S&P 500 CONS STAPLES INDEX 26.34% 9.37% 7.00% 1.12x 3.17x
S&P 500 ENERGY INDEX 11.93% 8.22% 8.14% 0.69x 1.93x
S&P 500 UTILITIES INDEX 10.32% 16.73% 11.43% 0.24x 3.56x
S&P 500 MATERIALS INDEX 13.51% 11.03% 9.12% 0.61x 2.27x
S&P 500 COMM SVC INDEX 22.53% 18.98% 19.94% 0.45x 2.47x

Source: Capital IQ

 


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