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Facebook, Netflix and Apple are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – July 30, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Facebook , Netflix (NFLX - Free Report) and Apple (AAPL - Free Report) .
Earnings Season Shows Strong Revenue Momentum
We are in the heart of the Q2 earnings season, with almost a thousand companies on the docket to come out with results this week, including 139 S&P 500 members. With more than half of S&P 500 results already out, we will have seen results from more than 80% of the large-cap index’s total membership by the end of this week.
A few high profile negative surprises from the likes of Facebook and Netflix notwithstanding, the Q2 earnings season has sustained the positive momentum in place over the last few quarters. Overall growth is steadily moving towards the Q1 level, with all around positive surprises and plenty of momentum on the revenues side. Importantly, while estimates for Q3 have nudged down a bit in recent days, they are holding up nicely.
The blended Q2 earnings growth (blending the reported with the unreported) at present of +23.6% is below the preceding quarter’s +24.6% level. But given the momentum we have seen from the 265 S&P 500 members that have reported already, both in terms of growth as well as positive surprises, we can see Q2 earnings growth moving past the Q1 level as the remainder of this earnings season unfolds.
Let me share one standout feature the Q2 results thus far before we get into the scorecard. This standout feature pertains to revenues, both in terms of growth rates as well as the proportion of companies beating revenue estimates. On the revisions front, estimates for Q3 have come down a bit but otherwise remain stable.
Q2 Earnings Season Scorecard (as of July 27th, 2018)
We now have Q2 results from 265 S&P 500 members that combined account for 66.2% of the index’s total market capitalization, with total earnings for these 265 companies up +23.6% from the same period last year on +10.1% higher revenues, with 80.8% of the companies beating EPS estimates, and 72.1% surpassing revenue estimates.
The earnings growth pace is a tad bit below the prior-quarter’s level, but revenue growth pace is clearly tracking higher.
For the Tech sector, we now have results from 65.5% of the sector’s total market capitalization in the S&P 500 index. Total earnings for these Tech sector companies are up +35.3% from the same period last year on +12% higher revenues, with 90% beating EPS estimates and 87.1% revenue estimates.
We will get the sector’s complete picture after the Apple report this week, but the results thus far are clearly tracking above the sector’s performance in other recent periods.
Overall Expectations for 2018 Q2
Looking at Q2 as a whole, combining the actual results from the 265 index members with estimates from the still-to-come 235 companies, total earnings are expected to be up +23.6% from the same period last year on +8.8% higher revenues, with double-digit earnings growth for 12 of the 16 Zacks sectors. This would follow +24.6% earnings growth in 2018 Q1 on +8.6%, the highest growth in almost 7 years.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Facebook, Netflix and Apple are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – July 30, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Facebook , Netflix (NFLX - Free Report) and Apple (AAPL - Free Report) .
Earnings Season Shows Strong Revenue Momentum
We are in the heart of the Q2 earnings season, with almost a thousand companies on the docket to come out with results this week, including 139 S&P 500 members. With more than half of S&P 500 results already out, we will have seen results from more than 80% of the large-cap index’s total membership by the end of this week.
A few high profile negative surprises from the likes of Facebook and Netflix notwithstanding, the Q2 earnings season has sustained the positive momentum in place over the last few quarters. Overall growth is steadily moving towards the Q1 level, with all around positive surprises and plenty of momentum on the revenues side. Importantly, while estimates for Q3 have nudged down a bit in recent days, they are holding up nicely.
The blended Q2 earnings growth (blending the reported with the unreported) at present of +23.6% is below the preceding quarter’s +24.6% level. But given the momentum we have seen from the 265 S&P 500 members that have reported already, both in terms of growth as well as positive surprises, we can see Q2 earnings growth moving past the Q1 level as the remainder of this earnings season unfolds.
Let me share one standout feature the Q2 results thus far before we get into the scorecard. This standout feature pertains to revenues, both in terms of growth rates as well as the proportion of companies beating revenue estimates. On the revisions front, estimates for Q3 have come down a bit but otherwise remain stable.
Q2 Earnings Season Scorecard (as of July 27th, 2018)
We now have Q2 results from 265 S&P 500 members that combined account for 66.2% of the index’s total market capitalization, with total earnings for these 265 companies up +23.6% from the same period last year on +10.1% higher revenues, with 80.8% of the companies beating EPS estimates, and 72.1% surpassing revenue estimates.
The earnings growth pace is a tad bit below the prior-quarter’s level, but revenue growth pace is clearly tracking higher.
For the Tech sector, we now have results from 65.5% of the sector’s total market capitalization in the S&P 500 index. Total earnings for these Tech sector companies are up +35.3% from the same period last year on +12% higher revenues, with 90% beating EPS estimates and 87.1% revenue estimates.
We will get the sector’s complete picture after the Apple report this week, but the results thus far are clearly tracking above the sector’s performance in other recent periods.
Overall Expectations for 2018 Q2
Looking at Q2 as a whole, combining the actual results from the 265 index members with estimates from the still-to-come 235 companies, total earnings are expected to be up +23.6% from the same period last year on +8.8% higher revenues, with double-digit earnings growth for 12 of the 16 Zacks sectors. This would follow +24.6% earnings growth in 2018 Q1 on +8.6%, the highest growth in almost 7 years.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.