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Disney, Michael Kors, Ralph Lauren and Eli Lilly are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – October 5, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Disney (DIS - Free Report) , Michael Kors , Ralph Lauren (RL - Free Report) and Eli Lilly (LLY - Free Report) .
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here.
There is plenty to like in the picture emerging from the Q3 earnings season, the bulk of which is now behind us. The earnings and revenue growth pace is very impressive, with Q3 growth on track to be in the vicinity of the record level we saw in the first half of the year.
There is no shortage of strong and reassuring results from bellwether operators in a variety of sectors, but some areas of weakness have emerged as well, with companies struggling to beat revenue estimates and a number of leading companies providing underwhelming guidance. The guidance issue is a key component of the market’s ‘disappointment’ with the otherwise strong companies we’ve already seen report.
This weakness on the revenue and guidance fronts feeds into the narrative of skepticism about the longevity of the current economic cycle and earnings expectations for the coming periods. Many of the companies guiding lower have blamed some combination of rising input costs, the strong U.S. dollar, and moderating international economic growth. This has started showing up in estimates already.
Q3 Earnings Season Scorecard(as of Friday, November 2nd)
We now have Q3 results from 376 S&P 500 members or 75.2% of the index’s total membership that combined account for 81.2% of the index’s total market capitalization. Total earnings for these 376 companies are up +25.4% from the same period last year on +9.3% higher revenues, with 78.2% beating EPS estimates and 64.1% beating revenue estimates.
The proportion of these companies beating both EPS and revenue estimates is 53.7%.
Here are the four takeaways:
· Q3 earnings growth for these 376 index members at +25.4% represents an improvements of what we had seen from the same group of companies in other recent periods.
· Revenue growth for these 376 index members at +9.3% is tracking below what we had seen in the preceding period, but represents an improvement over other recent periods.
· EPS beats at 78.2% is below what we had seen from the same group of 376 index members in the preceding period, but is in-line with historical periods.
· Revenue beats at 64.1% is tracking below historical periods, as pointed out earlier.
We have a very busy reporting docket this week, with more than 1100 companies reporting Q3 results, including 77 S&P 500 members. The Retail sector is the only that still has a sizable number of reports still to come, though most of them aren’t on deck to report results this week. This week’s notable reports include Disney, Michael Kors, Ralph Lauren, Eli Lilly and others.
Sector Focus
The Tech and Energy sectors have been in focus lately. For the Tech sector, we now have Q3 results from 82.7% of the sector’s total market cap in the S&P 500 index. Total earnings for these Tech companies are up +28.9% from the same period last year on +13.7% higher revenues, with 90.9% beating EPS estimates and 65.9% beating revenue estimates.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Disney, Michael Kors, Ralph Lauren and Eli Lilly are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – October 5, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Disney (DIS - Free Report) , Michael Kors , Ralph Lauren (RL - Free Report) and Eli Lilly (LLY - Free Report) .
To see more earnings analysis, visit https://at.zacks.com/?id=3207.
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here.
There is plenty to like in the picture emerging from the Q3 earnings season, the bulk of which is now behind us. The earnings and revenue growth pace is very impressive, with Q3 growth on track to be in the vicinity of the record level we saw in the first half of the year.
There is no shortage of strong and reassuring results from bellwether operators in a variety of sectors, but some areas of weakness have emerged as well, with companies struggling to beat revenue estimates and a number of leading companies providing underwhelming guidance. The guidance issue is a key component of the market’s ‘disappointment’ with the otherwise strong companies we’ve already seen report.
This weakness on the revenue and guidance fronts feeds into the narrative of skepticism about the longevity of the current economic cycle and earnings expectations for the coming periods. Many of the companies guiding lower have blamed some combination of rising input costs, the strong U.S. dollar, and moderating international economic growth. This has started showing up in estimates already.
Q3 Earnings Season Scorecard(as of Friday, November 2nd)
We now have Q3 results from 376 S&P 500 members or 75.2% of the index’s total membership that combined account for 81.2% of the index’s total market capitalization. Total earnings for these 376 companies are up +25.4% from the same period last year on +9.3% higher revenues, with 78.2% beating EPS estimates and 64.1% beating revenue estimates.
The proportion of these companies beating both EPS and revenue estimates is 53.7%.
Here are the four takeaways:
· Q3 earnings growth for these 376 index members at +25.4% represents an improvements of what we had seen from the same group of companies in other recent periods.
· Revenue growth for these 376 index members at +9.3% is tracking below what we had seen in the preceding period, but represents an improvement over other recent periods.
· EPS beats at 78.2% is below what we had seen from the same group of 376 index members in the preceding period, but is in-line with historical periods.
· Revenue beats at 64.1% is tracking below historical periods, as pointed out earlier.
We have a very busy reporting docket this week, with more than 1100 companies reporting Q3 results, including 77 S&P 500 members. The Retail sector is the only that still has a sizable number of reports still to come, though most of them aren’t on deck to report results this week. This week’s notable reports include Disney, Michael Kors, Ralph Lauren, Eli Lilly and others.
Sector Focus
The Tech and Energy sectors have been in focus lately. For the Tech sector, we now have Q3 results from 82.7% of the sector’s total market cap in the S&P 500 index. Total earnings for these Tech companies are up +28.9% from the same period last year on +13.7% higher revenues, with 90.9% beating EPS estimates and 65.9% beating revenue estimates.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Click to subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.