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As the earnings season nears its end and we begin adding up the numbers, things seem to be improving for corporate results as a whole. Though both earnings and revenues continue to decline year-over-year, results have improved from the preceding quarter. If one excludes energy companies, both earnings and revenues have increased on a yearly basis.
Overall, results have come in above expectations. Even the battered finance sector, weighed down by a regime of low interest rates, has surprise markets on this count. Markets have also gained during this season, on many instances due to a flurry of encouraging earnings results.
Results Improve from Q1
As of Aug 10, 454 S&P 500 members had posted their results. Taken together, they make up more than 92% of the index’s market cap, which means that they are more or less indicative of the entire earnings picture. Earnings of these companies have declined by 3.7% year-on-year even as earnings have fallen 0.7% over the same period. Of these 454 companies, 52.9% have exceeded revenue estimates while 71.1% have beaten earnings estimates.
Results have shown an improvement over the first quarter, even though this may not be apparent at first glance. Despite the fact that earnings continued to decline on a yearly basis, they did so at a slower rate, however small. In the first quarter, earnings fell by 4.7%, at a faster clip than current quarter results. Similarly, revenues continued to fall on a yearly basis, but the pace of this decline had slackened.
Auto Sector Earnings Grow, Tech Earnings Fall
Conglomerates, auto companies and utilities exhibited the fastest rate of earnings growth during the second quarter. Results from auto companies were particularly notable, since their earnings also came in better than expected. Of the total auto companies which have posted results 81.8% exceeded earnings estimates while 72.27% had beaten revenue estimates.
Meanwhile, nearly all of the S&P 500’s tech companies have released earnings numbers, since they make up 88.4% of the sector’s total market cap within the index. Earnings have declined 1.2% year-over-year while revenues have increased by 2.5%. However, the sector’s earnings growth remains a matter of concern even if we include Apple’s (AAPL - Free Report) disappointing results. At the same time, positive earnings surprises remain above their historical averages.
4 Largest Gainers
Earnings numbers have shown an improvement during the second quarter, however miniscule. Additionally, though third quarter estimates have declined, in keeping with the existing trend, second quarter results show that estimates were not too wide of the actual numbers.
Overall, most companies have received a considerable fillip from second quarter results. Shares of several of them have gained substantially during the earnings season. Below we present four of these, with relatively larger market capitalizations which have gained appreciably during this period. Additionally, these stocks are either Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy).
Exact Sciences Corporation (EXAS - Free Report) uses applied genomics to develop effective, patient-friendly screening technologies for use in the detection of cancer.
Exact Sciences has a Zacks Rank #2 (Buy) and has gained 59.7% over the last four weeks. The earnings surprise experienced for the quarter ending June was 16.4%.
Amkor Technology, Inc. (AMKR - Free Report) is the world's largest independent provider of semiconductor packaging and test services.
Amkor Technology has a Zacks Rank #1 (Strong Buy) and has gained 49.3% over the last four weeks. The earnings surprise experienced for the quarter ending June was 125%.
Puma Biotechnology, Inc. (PBYI - Free Report) is a biopharmaceutical company focused on the development and commercialization of innovative products that enhance cancer care.
Puma Biotechnology has a Zacks Rank #2 and has gained 48.5% over the last four weeks. The earnings surprise experienced for the quarter ending June was 6.8%.
The Chemours Company (CC - Free Report) is a provider of performance chemicals and has three operating segments, Fluoroproducts, Titanium Technologies and Chemical Solutions.
Chemours has a Zacks Rank #1 and has gained 34.1% over the last four weeks. The earnings surprise experienced for the quarter ending June was 107.7%.
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4 Biggest Winners from This Earnings Season
As the earnings season nears its end and we begin adding up the numbers, things seem to be improving for corporate results as a whole. Though both earnings and revenues continue to decline year-over-year, results have improved from the preceding quarter. If one excludes energy companies, both earnings and revenues have increased on a yearly basis.
Overall, results have come in above expectations. Even the battered finance sector, weighed down by a regime of low interest rates, has surprise markets on this count. Markets have also gained during this season, on many instances due to a flurry of encouraging earnings results.
Results Improve from Q1
As of Aug 10, 454 S&P 500 members had posted their results. Taken together, they make up more than 92% of the index’s market cap, which means that they are more or less indicative of the entire earnings picture. Earnings of these companies have declined by 3.7% year-on-year even as earnings have fallen 0.7% over the same period. Of these 454 companies, 52.9% have exceeded revenue estimates while 71.1% have beaten earnings estimates.
Results have shown an improvement over the first quarter, even though this may not be apparent at first glance. Despite the fact that earnings continued to decline on a yearly basis, they did so at a slower rate, however small. In the first quarter, earnings fell by 4.7%, at a faster clip than current quarter results. Similarly, revenues continued to fall on a yearly basis, but the pace of this decline had slackened.
Auto Sector Earnings Grow, Tech Earnings Fall
Conglomerates, auto companies and utilities exhibited the fastest rate of earnings growth during the second quarter. Results from auto companies were particularly notable, since their earnings also came in better than expected. Of the total auto companies which have posted results 81.8% exceeded earnings estimates while 72.27% had beaten revenue estimates.
Meanwhile, nearly all of the S&P 500’s tech companies have released earnings numbers, since they make up 88.4% of the sector’s total market cap within the index. Earnings have declined 1.2% year-over-year while revenues have increased by 2.5%. However, the sector’s earnings growth remains a matter of concern even if we include Apple’s (AAPL - Free Report) disappointing results. At the same time, positive earnings surprises remain above their historical averages.
4 Largest Gainers
Earnings numbers have shown an improvement during the second quarter, however miniscule. Additionally, though third quarter estimates have declined, in keeping with the existing trend, second quarter results show that estimates were not too wide of the actual numbers.
Overall, most companies have received a considerable fillip from second quarter results. Shares of several of them have gained substantially during the earnings season. Below we present four of these, with relatively larger market capitalizations which have gained appreciably during this period. Additionally, these stocks are either Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy).
Exact Sciences Corporation (EXAS - Free Report) uses applied genomics to develop effective, patient-friendly screening technologies for use in the detection of cancer.
Exact Sciences has a Zacks Rank #2 (Buy) and has gained 59.7% over the last four weeks. The earnings surprise experienced for the quarter ending June was 16.4%.
Amkor Technology, Inc. (AMKR - Free Report) is the world's largest independent provider of semiconductor packaging and test services.
Amkor Technology has a Zacks Rank #1 (Strong Buy) and has gained 49.3% over the last four weeks. The earnings surprise experienced for the quarter ending June was 125%.
Puma Biotechnology, Inc. (PBYI - Free Report) is a biopharmaceutical company focused on the development and commercialization of innovative products that enhance cancer care.
Puma Biotechnology has a Zacks Rank #2 and has gained 48.5% over the last four weeks. The earnings surprise experienced for the quarter ending June was 6.8%.
The Chemours Company (CC - Free Report) is a provider of performance chemicals and has three operating segments, Fluoroproducts, Titanium Technologies and Chemical Solutions.
Chemours has a Zacks Rank #1 and has gained 34.1% over the last four weeks. The earnings surprise experienced for the quarter ending June was 107.7%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>