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Corporate earnings have started growing again, with growth in the ongoing Q4 earnings season on track to reach its highest level in 8 quarters. Growth is still modest – the Q4 earnings growth is currently on track to reach +5.2% and the final growth tally for the quarter will at best be a couple of percentage points higher. But this is still a notable improvement over what we were experiencing in the recent past.
Please recall that earnings growth turned positive only in 2016 Q3, having declined in each of the preceding 5 quarters, as the chart below of year-over-year earnings growth for the S&P 500 index shows.
Positive surprises, particularly on the earnings front, are tracking below other historical periods at this stage. We will see if this trend continues this week as we enter the heart of the earnings season, with more 400 companies coming out with quarterly results, including 106 S&P 500 members.
Q4 Scorecard (as of January 27, 2017)
We have crossed the one-third mark in the Q4 reporting cycle, with results from 170 S&P 500 members, or 33.9% of the index’s total membership, already out. Total earnings for these 170 index members are up +6.0% on +3.1% higher revenues, with 64.1% beating EPS estimates and 54.7% coming ahead of top-line expectations.
The table below provides the current Q4 scorecard
The charts below provide a comparison of the results thus far with what we have seen from this same group of 170 S&P 500 members in other recent periods.
As you can see, the Q4 growth pace is notably tracking above what we had seen from the same group of 170 index members in other recent periods. But positive surprises (right-hand chart above) are tracking on the low side at this stage, particularly on the earnings front. The 64.1% proportion of Q4 companies beating EPS estimates compares to 81.2% in the preceding quarter, 76.3% as the 4-quarter average and 72.2% as the 12-quarter average. Positive revenue surprises are tracking below what we had seen from the same group of companies in Q3, but are roughly in-line with historical periods.
The chart below compares the proportion of companies reporting Q4 results that are beating both EPS and revenue estimates with what this same group of companies had reported in other recent periods.
Standout Sectors
Sectors with strong growth and better than expected results include the Finance, Technology, Construction, Industrial Products, Basic Materials and Consumer Discretionary sectors. Positive surprises for all of these sectors are tracking above the index level.
Finance: With results from 57.7% of the sector’s market cap in the S&P 500 index already out, total earnings for the sector are up +11.3% from the same period last year on +3.1% higher revenues, with +66.7% beating EPS estimates and +46.2% beating top-line estimates.
This is a better growth performance than we have seen from the sector in other recent periods, as the comparison charts below show. Please note that positive surprises are as hard to come by in the Finance sector as they are elsewhere.
Strong Finance sector growth is a big driver of the aggregate growth performance for the S&P 500 index as a whole. Excluding the Finance sector, the Q4 growth pace still compares favorably with other recent periods, but a lot less so, as the right-hand chart below shows.
Technology: For the Technology sector, we now have Q4 results from 59.6% of the sector’s total market cap. Total earnings for these companies are up +7.2% from the same period last year on +4.9% higher revenues, with 69% beating EPS estimates and 82.8% beating revenue estimates.
We will see what this week’s Apple (AAPL - Free Report) and Facebook reports bring, but the sector’s Q4 earnings and revenue growth is about in-line with what we saw from this same group of Tech companies in the preceding quarter (2016 Q3), though it is notably tracking above the 4-quarter and 12-quarter averages. With respect to positive surprises, Tech companies appear to be beating EPS estimates at a lower proportion than has historically been the case, though the proportion of positive earnings surprises remains above the index level. Revenue surprises, on the other hand, are tracking notably above historical periods.
Key Reports for the Week of January 30th
Tuesday – 1/31/2017: Monday has a relatively light reporting docket, but Tuesday is very busy with more than 90 companies reporting results, including 33 S&P 500 members (of which 22 are in the morning). The focus will be on Apple (AAPL - Free Report) , which reports after the market’s close. Exxon (XOM - Free Report) , Pfizer (PFE - Free Report) , Eli Lilly (LLY - Free Report) and Under Armour (UAA - Free Report) will be the key reports in the morning.
Apple is expected to report $3.22 in earnings on $76.2 billion in revenues, which compare to $3.28 on $75.9 billion in revenues in the year-earlier period. The stock is up +9.7% since November 8th vs. +7% for the S&P 500 index and +6.1% for the Zacks Technology sector. December quarter estimates have been stable in recent days, though they have come down for the March quarter.
Wednesday – 2/01/2017: Facebook is the most high profile of the 27 index members reporting results today (it will report after the market’s close). The focus will be on the social media giant’s ad revenues and daily active users, but the current Zacks Consensus EPS estimate is $1.13 on $8.4 billion in revenues. This compares to EPS of $0.59 on $5.8 billion in revenues in the year-earlier period. Estimates have modestly inched up in recent days. The stock has performed in-line with the Zacks Tech sector since November 8th, up +6.3% vs. +6.1%.
Thursday – 2/02/2017: On a busy reporting day with 35 index members coming out with Q4 results (23 in the morning & 12 after the market’s close), the notable reports are from CME Group (CME - Free Report) and International Paper (IP - Free Report) in the morning and Amazon (AMZN - Free Report) in the evening.
Amazon is expected to report $1.41 in earnings (up +41.5% year over year) on $44.8 billion in revenues (up +25.4% in revenues). Estimates have come down ahead of the earnings report, but Amazon has never really been an EPS story; it is all top-line growth, particularly gains in its cloud business, Amazon Web Services. Amazon, along with Microsoft (MSFT - Free Report) , which came out with impressive cloud numbers of its own, has staked a well-regarded claim to leadership in the fast-growing cloud business. The stock has been a strong performer over the past year, up +31.4% vs. +12.4% gain for the Zacks Retail sector.
Friday – 2/03/2017: AutoNation (AN - Free Report) and Hershey (HSY - Free Report) are the notable reports today, both in the morning.
Q4 Expectations As a Whole
For Q4 as a whole, combining the actual results from the 170 S&P 500 members that have reported with estimates for the still-to-come 330 companies, total earnings are expected to be up +5.2% from the same period last year on +4.0% higher revenues. This would follow the +3.8% growth in Q3 earnings on +2.3% higher revenues, the first instance of positive earnings growth for the index after five quarters of back-to-back declines. Comparisons for the Energy sector, a big driver of the earnings recession, turn positive in Q4, with the sector’s earnings growth turning positive for the first time after 8 quarters of declines.
The chart below shows the Q3 earnings growth contrasted with declines in the preceding 5 quarters. As you can see in the chart below, the growth pace is expected to ramp up in 2017.
The table below shows the summary picture Q4 contrasted with what was actually achieved in the preceding quarter.
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Our Best Private Investment Ideas
If you’d like to see specific recommendations to capitalize on current market conditions, there is a way you can follow all Zacks' private buys and sells in real time. Our experts cover everything from earnings surprises and insider buys to stocks under $10 and ETFs. Starting today, for the next month, you can have unrestricted access to all of our exclusive portfolios. Click here for Zacks' private trades >>
Here is a list of the 413 companies reporting this week, including 106 S&P 500 members.
Company
Ticker
Current Qtr
Year-Ago Qtr
Last EPS Surprise %
Report Day
Time
AFFIL MANAGERS
AMG
3.7
3.61
0.67%
Monday
BTO
ALLIANCE RES
ARLP
0.86
0.71
13.75%
Monday
BTO
BOOZ ALLEN HMLT
BAH
0.4
0.41
6.98%
Monday
BTO
CAPSTAR FIN HLD
CSTR
0.22
N/A
0.00%
Monday
BTO
ENTERPRISE PROD
EPD
0.32
0.35
0.00%
Monday
BTO
DORIAN LPG LTD
LPG
-0.18
0.87
-92.31%
Monday
BTO
ALLIANCE HLDGS
AHGP
0.77
0.96
10.96%
Monday
BTO
OPUS BANK
OPB
0.44
0.5
-18.03%
Monday
BTO
GENL GRWTH PPTY
GGP
0.43
0.43
0.00%
Monday
AMC
PRINCIPAL FINL
PFG
1.15
1.02
2.68%
Monday
AMC
LEGGETT & PLATT
LEG
0.58
0.64
8.06%
Monday
AMC
UDR INC
UDR
0.45
0.42
0.00%
Monday
AMC
GRACO INC
GGG
0.85
0.93
7.95%
Monday
AMC
BOFI HLDG INC
BOFI
0.48
0.44
0.00%
Monday
AMC
ADV ENERGY INDS
AEIS
0.77
0.28
4.29%
Monday
AMC
HERITAGE OAKS
HEOP
0.13
0.1
0.00%
Monday
AMC
SERVISFIRST BCS
SFBS
0.35
0.37
8.33%
Monday
AMC
WERNER ENTRPRS
WERN
0.26
0.51
0.00%
Monday
AMC
PACKAGING CORP
PKG
1.16
1.08
-0.76%
Monday
AMC
DHT HOLDINGS
DHT
0.12
0.31
-66.67%
Monday
AMC
ALEXANDRIA REAL
ARE
1.42
1.33
0.72%
Monday
AMC
CNX COAL RESRCS
CNXC
0.52
0.37
-22.22%
Monday
AMC
CORCEPT THERAPT
CORT
0.02
0.02
100.00%
Monday
AMC
HEARTLAND FINCL
HTLF
0.75
0.67
9.46%
Monday
AMC
REINSURANCE GRP
RGA
2.5
2.84
4.68%
Monday
AMC
RAMBUS INC
RMBS
0.13
0.16
20.00%
Monday
AMC
RAYONIER ADV MT
RYAM
0.18
0.32
62.96%
Monday
AMC
SANMINA CORP
SANM
0.59
0.55
-4.48%
Monday
AMC
TESSCO TECH INC
TESS
0.14
0.35
9.09%
Monday
AMC
TELEKOM AUSTRIA
TKAGY
N/A
0.19
76.92%
Monday
AMC
IDEX CORP
IEX
0.93
0.94
0.00%
Monday
AMC
CRANE CO
CR
0.98
1.12
5.94%
Monday
AMC
INTEGR DEVICE
IDTI
0.27
0.3
7.69%
Monday
AMC
BERKSHIRE HILLS
BHLB
0.57
0.54
3.64%
Monday
AMC
AMERISOURCEBRGN
ABC
1.24
1.27
6.56%
Tuesday
BTO
LILLY ELI & CO
LLY
0.99
0.78
-8.33%
Tuesday
BTO
NUCOR CORP
NUE
0.34
0.46
-2.22%
Tuesday
BTO
MASTERCARD INC
MA
0.85
0.79
10.20%
Tuesday
BTO
ZIMMER BIOMET
ZBH
2.11
2.09
0.00%
Tuesday
BTO
THERMO FISHER
TMO
2.37
2.12
3.05%
Tuesday
BTO
DANAHER CORP
DHR
1.03
1.27
4.82%
Tuesday
BTO
HCA HOLDINGS
HCA
1.78
1.69
12.59%
Tuesday
BTO
PACCAR INC
PCAR
0.87
0.98
-1.01%
Tuesday
BTO
PENTAIR PLC
PNR
0.73
1.13
6.85%
Tuesday
BTO
UTD PARCEL SRVC
UPS
1.68
1.57
0.70%
Tuesday
BTO
PFIZER INC
PFE
0.5
0.53
-1.61%
Tuesday
BTO
VALERO ENERGY
VLO
0.74
1.79
36.26%
Tuesday
BTO
EXXON MOBIL CRP
XOM
0.72
0.67
5.00%
Tuesday
BTO
NASDAQ INC
NDAQ
0.94
0.89
0.00%
Tuesday
BTO
SIMON PROPERTY
SPG
2.51
2.73
0.75%
Tuesday
BTO
UNDER ARMOUR-C
UA
0.25
N/A
N/A
Tuesday
BTO
UNDER ARMOUR-A
UAA
0.25
0.25
16.00%
Tuesday
BTO
COACH INC
COH
0.73
0.68
2.27%
Tuesday
BTO
HARLEY-DAVIDSON
HOG
0.31
0.22
1.59%
Tuesday
BTO
AETNA INC-NEW
AET
1.45
1.37
2.48%
Tuesday
BTO
XEROX CORP
XRX
0.25
0.32
0.00%
Tuesday
BTO
TAYLOR MORRISON
TMHC
0.58
0.53
6.52%
Tuesday
BTO
IMPERIAL OIL LT
IMO
0.27
0.09
25.00%
Tuesday
BTO
STIFEL FINL
SF
0.63
0.51
16.95%
Tuesday
BTO
CONSOL ENERGY
CNX
-0.01
-0.11
-36.36%
Tuesday
BTO
SCOTTS MIRCL-GR
SMG
-1.27
-1.13
-15.38%
Tuesday
BTO
CNH INDUSTRIAL
CNHI
0.11
0.19
0.00%
Tuesday
BTO
POTLATCH CORP
PCH
0.3
0.09
-2.86%
Tuesday
BTO
ANIXTER INTL
AXE
1.23
0.88
2.99%
Tuesday
BTO
MIDSOUTH BANCRP
MSL
0.13
0.15
40.00%
Tuesday
BTO
SPRINT CORP
S
-0.08
-0.21
42.86%
Tuesday
BTO
MANPOWER INC WI
MAN
1.7
1.66
8.72%
Tuesday
BTO
CIT GROUP
CIT
0.79
1.13
-7.59%
Tuesday
BTO
WADDELL&REED -A
WDR
0.41
0.76
25.49%
Tuesday
BTO
AUDIOCODES LTD
AUDC
0.05
0.07
75.00%
Tuesday
BTO
BANCO SANT -ADR
BSAC
0.38
0.25
-2.50%
Tuesday
BTO
NETSCOUT SYSTMS
NTCT
0.47
0.5
0.00%
Tuesday
BTO
TWIN DISC
TWIN
-0.2
-0.18
17.24%
Tuesday
BTO
MAKEMYTRIP LTD
MMYT
-0.5
-0.47
-30.14%
Tuesday
BTO
NINTENDO LTD
NTDOY
0.13
0.25
-100.00%
Tuesday
BTO
NUSTAR ENERGY
NS
0.54
0.61
0.00%
Tuesday
BTO
1800FLOWERS.COM
FLWS
0.94
0.92
0.00%
Tuesday
BTO
G&K SVCS A
GK
0.99
0.92
-1.11%
Tuesday
BTO
HUBBELL INC
HUBB
1.23
1.31
8.67%
Tuesday
BTO
CAPITAL PRODUCT
CPLP
0.09
0.1
-12.50%
Tuesday
BTO
NUSTAR GP HLDGS
NSH
0.39
0.3
8.11%
Tuesday
BTO
ALLY FINANCIAL
ALLY
0.49
0.52
-5.08%
Tuesday
BTO
KYOCERA CP ADR
KYO
N/A
0.19
N/A
Tuesday
BTO
ANADARKO PETROL
APC
-0.51
-0.57
-56.14%
Tuesday
AMC
ARCONIC INC
ARNC
0.11
0.12
-5.88%
Tuesday
AMC
APPLE INC
AAPL
3.22
3.28
0.60%
Tuesday
AMC
CH ROBINSON WWD
CHRW
0.84
0.88
-7.22%
Tuesday
AMC
BOSTON PPTYS
BXP
1.5
1.28
-0.70%
Tuesday
AMC
ILLUMINA INC
ILMN
0.81
0.81
11.49%
Tuesday
AMC
EQUITY RESIDENT
EQR
0.79
0.92
0.00%
Tuesday
AMC
CHUBB LTD
CB
2.43
2.38
9.09%
Tuesday
AMC
ELECTR ARTS INC
EA
2.15
1.73
48.28%
Tuesday
AMC
FORTUNE BRD H&S
FBHS
0.69
0.56
2.56%
Tuesday
AMC
AFLAC INC
AFL
1.64
1.56
4.60%
Tuesday
AMC
UTD STATES STL
X
0.03
-0.23
-54.55%
Tuesday
AMC
ADV MICRO DEV
AMD
-0.04
-0.12
100.00%
Tuesday
AMC
BRANDYWINE RT
BDN
0.33
0.39
0.00%
Tuesday
AMC
OCLARO INC
OCLR
0.19
0
20.00%
Tuesday
AMC
VIAVI SOLUTIONS
VIAV
0.05
0.07
40.00%
Tuesday
AMC
WABASH NATIONAL
WNC
0.38
0.51
4.17%
Tuesday
AMC
BERKLEY (WR) CP
WRB
0.83
0.89
-1.12%
Tuesday
AMC
ALIGN TECH INC
ALGN
0.67
0.6
23.53%
Tuesday
AMC
ALLEGIANT TRAVL
ALGT
2.4
3.38
3.38%
Tuesday
AMC
SILGAN HOLDINGS
SLGN
0.48
0.48
-1.60%
Tuesday
AMC
RENAISSANCERE
RNR
1.42
3.07
-9.52%
Tuesday
AMC
TELENAV INC
TNAV
-0.17
-0.19
12.50%
Tuesday
AMC
ACCURAY INC
ARAY
-0.07
-0.08
-20.00%
Tuesday
AMC
MA-COM TECH SOL
MTSI
0.41
0.18
-4.35%
Tuesday
AMC
PLANTRONICS INC
PLT
0.61
0.67
13.79%
Tuesday
AMC
ACXIOM CORP
ACXM
0.06
0.08
100.00%
Tuesday
AMC
CREDIT ACCEPT
CACC
4.46
3.84
6.09%
Tuesday
AMC
MICROSTRATEGY
MSTR
2.57
3.38
38.32%
Tuesday
AMC
OLIN CORP
OLN
0.31
0.01
0.00%
Tuesday
AMC
KEY TRONIC
KTCC
0.16
0.1
-5.88%
Tuesday
AMC
NEWMARKET CORP
NEU
3.87
4.44
17.88%
Tuesday
AMC
BOOT BARN HLDGS
BOOT
0.4
0.45
0.00%
Tuesday
AMC
FAIR ISAAC INC
FICO
0.67
0.67
35.14%
Tuesday
AMC
MATCH GROUP INC
MTCH
0.24
0.18
25.00%
Tuesday
AMC
MANHATTAN ASOC
MANH
0.39
0.36
9.30%
Tuesday
AMC
FIBRIA CELULOSE
FBR
0.1
0.47
-29.63%
Tuesday
N/A
BANCO DE CHILE
BCH
N/A
1.2
0.75%
Tuesday
N/A
FIRST BK HAM NJ
FRBA
0.17
0.07
14.29%
Tuesday
N/A
NOMURA HLDG-ADR
NMR
N/A
0.08
N/A
Tuesday
N/A
RICOH LTD ADR
RICOY
N/A
0.19
N/A
Tuesday
N/A
FUJIFILM HLDGS
FUJIY
N/A
0.66
N/A
Tuesday
N/A
WEC ENERGY GRP
WEC
0.62
0.63
15.00%
Wednesday
BTO
AUTOMATIC DATA
ADP
0.81
0.72
11.69%
Wednesday
BTO
INGERSOLL RAND
IR
0.92
0.94
9.30%
Wednesday
BTO
ANTHEM INC
ANTM
1.59
1.14
-1.61%
Wednesday
BTO
BAXTER INTL
BAX
0.52
0.43
27.27%
Wednesday
BTO
MARATHON PETROL
MPC
0.26
0.79
-25.64%
Wednesday
BTO
JOHNSON CONTRLS
JCI
0.51
0.44
18.63%
Wednesday
BTO
DOMINION RES VA
D
1
0.7
9.62%
Wednesday
BTO
ALTRIA GROUP
MO
0.67
0.67
1.23%
Wednesday
BTO
PPL CORP
PPL
0.51
0.43
6.78%
Wednesday
BTO
AVERY DENNISON
AVY
0.93
0.85
1.00%
Wednesday
BTO
PITNEY BOWES IN
PBI
0.58
0.48
-8.33%
Wednesday
BTO
MERITOR INC
MTOR
0.19
0.33
13.33%
Wednesday
BTO
AB ELECTROLUX
ELUXY
N/A
-0.32
N/A
Wednesday
BTO
VANTIV INC-A
VNTV
0.69
0.62
7.69%
Wednesday
BTO
CELANESE CP-A
CE
1.51
1.25
3.73%
Wednesday
BTO
MDC HLDGS
MDC
0.68
0.44
-14.29%
Wednesday
BTO
LITTELFUSE INC
LFUS
1.52
1.21
0.00%
Wednesday
BTO
NATUS MEDICAL
BABY
0.52
0.51
8.33%
Wednesday
BTO
INVEST TECH-NEW
ITG
0.11
-0.07
38.46%
Wednesday
BTO
SANDVIK AB
SDVKY
N/A
-0.01
-110.00%
Wednesday
BTO
SPIRIT AEROSYS
SPR
1.02
0.95
8.41%
Wednesday
BTO
MPLX LP
MPLX
0.21
-0.14
23.53%
Wednesday
BTO
USG CORP
USG
0.36
0.42
2.22%
Wednesday
BTO
ENERGIZER HLDGS
ENR
1.25
1.16
8.00%
Wednesday
BTO
SPIRE INC
SR
1.07
1.04
-3.23%
Wednesday
BTO
DOMINION MIDSTR
DM
0.25
0.32
-3.23%
Wednesday
BTO
CGI GRP INC -A
GIB
0.67
0.63
-1.45%
Wednesday
BTO
MALIBU BOATS-A
MBUU
0.32
0.29
0.00%
Wednesday
BTO
SILICON LAB INC
SLAB
0.45
0.36
42.86%
Wednesday
BTO
MONRO MUFFLER
MNRO
0.52
0.51
-5.36%
Wednesday
BTO
CEVA INC
CEVA
0.21
0.11
13.33%
Wednesday
BTO
OMNOVA SOLUTION
OMN
0.14
0.13
-17.65%
Wednesday
BTO
EVERCORE PARTNR
EVR
1.34
1.22
24.49%
Wednesday
BTO
GRAHAM CORP
GHM
0.09
0.13
40.00%
Wednesday
BTO
MERITAGE HOMES
MTH
1.19
1.26
2.33%
Wednesday
BTO
BROOKFIELD INFR
BIP
0.66
0.03
1.49%
Wednesday
BTO
VOLVO AB-B
VLVLY
0.23
N/A
-16.67%
Wednesday
BTO
BANCO BILBAO VZ
BBVA
N/A
0.15
N/A
Wednesday
BTO
TUPPERWARE BRND
TUP
1.37
1.35
8.75%
Wednesday
BTO
TRACTOR SUPPLY
TSCO
0.92
0.82
1.52%
Wednesday
AMC
HOLOGIC INC
HOLX
0.51
0.46
4.00%
Wednesday
AMC
FACEBOOK INC-A
FB
1.13
0.59
14.29%
Wednesday
AMC
LINCOLN NATL-IN
LNC
1.7
1.54
12.96%
Wednesday
AMC
TORCHMARK CORP
TMK
1.12
1.05
2.68%
Wednesday
AMC
UNUM GROUP
UNM
0.98
0.95
4.21%
Wednesday
AMC
EDWARDS LIFESCI
EW
0.71
0.63
0.00%
Wednesday
AMC
ALLSTATE CORP
ALL
1.61
1.6
1.61%
Wednesday
AMC
AVALONBAY CMMTY
AVB
2.09
1.99
-0.47%
Wednesday
AMC
QORVO INC
QRVO
1.06
0.82
-8.40%
Wednesday
AMC
XL GROUP LTD
XL
0.41
0.65
4.76%
Wednesday
AMC
AMERIPRISE FINL
AMP
2.43
2.47
-4.98%
Wednesday
AMC
METLIFE INC
MET
1.35
1.23
12.28%
Wednesday
AMC
SYMANTEC CORP
SYMC
0.21
0.22
0.00%
Wednesday
AMC
MID-AMER APT CM
MAA
1.49
1.45
0.00%
Wednesday
AMC
NIC INC
EGOV
0.14
0.13
33.33%
Wednesday
AMC
MDU RESOURCES
MDU
0.29
0.25
4.65%
Wednesday
AMC
LANDSTAR SYSTEM
LSTR
0.87
0.88
6.17%
Wednesday
AMC
PAREXEL INTL CP
PRXL
0.83
0.9
-11.63%
Wednesday
AMC
EASTGROUP PPTYS
EGP
1.07
0.94
0.00%
Wednesday
AMC
TETRA TECH NEW
TTEK
0.47
0.39
0.00%
Wednesday
AMC
AGNC INVESTMENT
AGNC
0.64
0.54
16.36%
Wednesday
AMC
LANNETT INC
LCI
0.83
0.95
10.00%
Wednesday
AMC
SEACOAST BKNG A
SBCF
0.29
0.19
3.70%
Wednesday
AMC
AMER FINL GROUP
AFG
1.62
1.52
-1.31%
Wednesday
AMC
BLACK HILLS COR
BKH
0.99
0.71
14.29%
Wednesday
AMC
INTEVAC INC
IVAC
0.07
-0.12
71.43%
Wednesday
AMC
BLUE CAP REINSR
BCRH
0.32
0.62
80.95%
Wednesday
AMC
SHUTTERFLY INC
SFLY
2.73
3.57
10.42%
Wednesday
AMC
UNIVL TECH INST
UTI
-0.1
-0.03
55.17%
Wednesday
AMC
WEATHERFORD INT
WFT
-0.32
-0.13
-62.50%
Wednesday
AMC
NXP SEMICONDUCT
NXPI
1.41
0.84
-20.44%
Wednesday
AMC
MANITOWOC INC
MTW
-0.17
0.43
-7.69%
Wednesday
AMC
BLACK KNGHT FIN
BKFS
0.29
0.25
-3.45%
Wednesday
AMC
OWENS-ILLINOIS
OI
0.47
0.4
3.03%
Wednesday
AMC
AMERIGAS PARTNR
APU
1.08
0.83
-2.13%
Wednesday
AMC
CABOT CORP
CBT
0.69
0.51
6.38%
Wednesday
AMC
CELADON GROUP
CGI
0.03
0.24
-242.86%
Wednesday
AMC
LEGG MASON INC
LM
0.64
1.45
8.62%
Wednesday
AMC
AXIS CAP HLDGS
AXS
0.93
1.23
63.30%
Wednesday
AMC
AMDOCS LTD
DOX
0.84
0.79
0.00%
Wednesday
AMC
WEST CORP
WSTC
0.65
0.7
0.00%
Wednesday
AMC
AXCELIS TECH
ACLS
0.1
0.04
75.00%
Wednesday
AMC
BROOKS AUTOMATN
BRKS
0.2
0.02
46.67%
Wednesday
AMC
CAVIUM INC
CAVM
0.18
0.05
-214.29%
Wednesday
AMC
CADENCE DESIGN
CDNS
0.2
0.25
27.78%
Wednesday
AMC
EXPONENT INC
EXPO
0.34
0.36
16.67%
Wednesday
AMC
EXTREME NETWRKS
EXTR
0.03
0.05
100.00%
Wednesday
AMC
UGI CORP
UGI
0.75
0.64
0.00%
Wednesday
AMC
PC CONNECTION
CNXN
0.51
0.51
0.00%
Wednesday
AMC
FNF GROUP
FNF
0.62
0.55
-8.00%
Wednesday
AMC
CIRRUS LOGIC
CRUS
1.53
0.7
30.53%
Wednesday
AMC
CSG SYS INTL
CSGS
0.51
0.73
42.22%
Wednesday
AMC
BOTTOMLINE TECH
EPAY
0.06
0.17
-50.00%
Wednesday
AMC
EXAR CORP
EXAR
0.02
0.05
-16.67%
Wednesday
AMC
KIMBALL ELECTRN
KE
0.2
0.16
33.33%
Wednesday
AMC
POWER INTGRATIO
POWI
0.43
0.49
15.22%
Wednesday
AMC
CBL&ASSOC PPTYS
CBL
0.67
0.71
0.00%
Wednesday
AMC
CACI INTL A
CACI
1.43
1.6
54.76%
Wednesday
AMC
QIAGEN NV
QGEN
0.39
0.32
7.41%
Wednesday
AMC
MELLANOX TECH
MLNX
0.52
0.5
-5.00%
Wednesday
AMC
CONMED CORP
CNMD
0.56
0.52
0.00%
Wednesday
AMC
IAC/INTERACTIV
IAC
0.79
0.71
20.41%
Wednesday
AMC
ALLIED WORLD AS
AWH
0.63
0.47
-4.62%
Wednesday
AMC
HOULIHAN LOKEY
HLI
0.51
0.47
2.78%
Wednesday
AMC
KIRBY CORP
KEX
0.52
0.94
3.51%
Wednesday
AMC
REXNORD CORP
RXN
0.24
0.38
0.00%
Wednesday
AMC
MURPHY USA INC
MUSA
1.03
0.69
-26.11%
Wednesday
AMC
HILLENBRAND INC
HI
0.4
0.41
1.75%
Wednesday
AMC
HITACHI
HTHIY
0.48
1.33
263.33%
Wednesday
N/A
ELECTRO SCI IND
ESIO
-0.32
-0.14
-11.11%
Wednesday
N/A
COLOPLAST AS AD
CLPBY
N/A
N/A
N/A
Wednesday
N/A
SIEMENS AG-ADR
SIEGY
1.88
1.95
-3.68%
Wednesday
N/A
ROCHE HLDG LTD
RHHBY
N/A
N/A
N/A
Wednesday
N/A
CME GROUP INC
CME
1.08
0.92
0.96%
Thursday
BTO
EQT CORP
EQT
-0.09
-0.06
40.91%
Thursday
BTO
INTL PAPER
IP
0.7
0.87
-3.19%
Thursday
BTO
XCEL ENERGY INC
XEL
0.44
0.41
3.45%
Thursday
BTO
HARRIS CORP
HRS
1.38
1.49
2.96%
Thursday
BTO
BOSTON SCIENTIF
BSX
0.29
0.26
0.00%
Thursday
BTO
EATON CORP PLC
ETN
1.1
1.17
0.88%
Thursday
BTO
BECTON DICKINSO
BDX
2.11
1.96
1.44%
Thursday
BTO
DELPHI AUTO PLC
DLPH
1.6
1.39
5.63%
Thursday
BTO
ESTEE LAUDER
EL
1.16
1.22
6.33%
Thursday
BTO
PARKER HANNIFIN
PH
1.4
1.52
2.55%
Thursday
BTO
CIGNA CORP
CI
1.74
1.87
1.57%
Thursday
BTO
CONOCOPHILLIPS
COP
-0.39
-0.9
4.35%
Thursday
BTO
MARSH &MCLENNAN
MMC
0.84
0.71
0.00%
Thursday
BTO
MERCK & CO INC
MRK
0.88
0.93
9.18%
Thursday
BTO
BALL CORP
BLL
0.86
0.8
4.35%
Thursday
BTO
IDEXX LABS INC
IDXX
0.51
0.48
5.08%
Thursday
BTO
PHILIP MORRIS
PM
1.13
0.81
1.63%
Thursday
BTO
RYDER SYS
R
1.4
1.66
1.21%
Thursday
BTO
SNAP-ON INC
SNA
2.4
2.22
3.26%
Thursday
BTO
CMS ENERGY
CMS
0.28
0.38
16.67%
Thursday
BTO
RALPH LAUREN CP
RL
1.65
2.27
11.76%
Thursday
BTO
XYLEM INC
XYL
0.65
0.6
1.89%
Thursday
BTO
MIX TELEMATICS
MIXT
0.07
0.03
133.33%
Thursday
BTO
OM ASSET MGMT
OMAM
0.32
0.3
6.67%
Thursday
BTO
BEACON ROOFING
BECN
0.44
0.41
-3.30%
Thursday
BTO
MAGELLAN MDSTRM
MMP
0.94
0.86
3.41%
Thursday
BTO
KENNAMETAL INC
KMT
0.22
0.14
-21.43%
Thursday
BTO
GROUP 1 AUTO
GPI
1.69
1.51
-5.77%
Thursday
BTO
GARTNER INC -A
IT
0.96
0.92
16.00%
Thursday
BTO
MKS INSTRUMENTS
MKSI
1
0.34
12.82%
Thursday
BTO
INGREDION INC
INGR
1.63
1.42
12.00%
Thursday
BTO
TELENOR ASA-ADS
TELNY
N/A
-0.17
145.45%
Thursday
BTO
COLFAX CORP
CFX
0.45
0.51
11.43%
Thursday
BTO
SMITH (AO) CORP
AOS
0.46
0.45
4.44%
Thursday
BTO
OLD DOMINION FL
ODFL
0.86
0.85
6.19%
Thursday
BTO
VALERO EGY PTNR
VLP
0.73
0.66
16.67%
Thursday
BTO
EQT MIDSTRM PTR
EQM
1.38
1.26
-1.60%
Thursday
BTO
SIRIUS XM HLDGS
SIRI
0.04
0.03
0.00%
Thursday
BTO
SENSATA TECHNOL
ST
0.74
0.66
0.00%
Thursday
BTO
AUTOLIV INC
ALV
1.82
2.08
18.12%
Thursday
BTO
PRESTIGE BRANDS
PBH
0.56
0.53
3.28%
Thursday
BTO
CDK GLOBAL INC
CDK
0.56
0.44
13.21%
Thursday
BTO
CARPENTER TECH
CRS
0.06
0.24
-136.36%
Thursday
BTO
EQT GP HOLDINGS
EQGP
0.22
0.17
5.26%
Thursday
BTO
MSCI INC-A
MSCI
0.76
0.66
5.48%
Thursday
BTO
MOBILE MINI INC
MINI
0.37
0.41
-18.42%
Thursday
BTO
MSG NETWORKS
MSGN
0.52
0.45
22.73%
Thursday
BTO
BANCO BRADESCO
BBD
0.23
0.22
8.70%
Thursday
BTO
DSP GROUP INC
DSPG
0.03
0.03
85.71%
Thursday
BTO
GAMING AND LEIS
GLPI
0.75
0.68
4.05%
Thursday
BTO
KEMET CORP
KEM
0.06
0.02
175.00%
Thursday
BTO
KULICKE & SOFFA
KLIC
0.11
0
25.00%
Thursday
BTO
LAZARD LTD
LAZ
0.99
0.92
11.84%
Thursday
BTO
NATL FUEL GAS
NFG
0.85
0.78
26.92%
Thursday
BTO
TRIUMPH GRP INC
TGI
1.24
1.39
-14.53%
Thursday
BTO
BROOKFLD RENWBL
BEP
-0.03
-0.09
7.69%
Thursday
BTO
MITEK SYSTEMS
MITK
-0.02
0.01
25.00%
Thursday
BTO
NY TIMES A
NYT
0.23
0.37
20.00%
Thursday
BTO
ROYAL DTCH SH-A
RDS.A
0.69
0.58
29.63%
Thursday
BTO
INTRAWEST RESRT
SNOW
-0.65
-0.6
-5.66%
Thursday
BTO
SURMODICS
SRDX
0.09
0.38
188.89%
Thursday
BTO
TELEDYNE TECH
TDY
1.37
1.41
16.92%
Thursday
BTO
ASSA ABLOY AB
ASAZY
0.1
0.11
-8.33%
Thursday
BTO
ATTUNITY LTD
ATTU
-0.06
-0.05
-600.00%
Thursday
BTO
DASSAULT SY-ADR
DASTY
0.62
0.77
10.53%
Thursday
BTO
KELLY SVCS A
KELYA
0.52
0.88
2.33%
Thursday
BTO
PANASONIC CORP
PCRFY
0.13
0.17
-25.00%
Thursday
BTO
SWEDBANK AB-ADR
SWDBY
N/A
0.4
24.39%
Thursday
BTO
UNITIL CORP
UTL
0.72
0.67
78.57%
Thursday
BTO
HARMONY GOLD
HMY
N/A
0.01
N/A
Thursday
BTO
ING GROEP-ADR
ING
N/A
0.23
N/A
Thursday
BTO
VODAFONE GP PLC
VOD
N/A
N/A
N/A
Thursday
BTO
SALLY BEAUTY CO
SBH
0.45
0.43
-2.38%
Thursday
BTO
NOKIA CP-ADR A
NOK
0.08
0.17
0.00%
Thursday
BTO
ENTEGRIS INC
ENTG
0.21
0.2
0.00%
Thursday
BTO
BELDEN INC
BDC
1.41
1.63
2.38%
Thursday
BTO
NOVO-NORDISK AS
NVO
0.51
0.47
3.57%
Thursday
BTO
BCE INC
BCE
0.57
0.53
1.45%
Thursday
BTO
ROYAL GOLD INC
RGLD
0.39
0.23
9.52%
Thursday
BTO
LEE ENTRPRS
LEE
0.15
0.22
100.00%
Thursday
BTO
SKF AB
SKFRY
0.28
0.22
N/A
Thursday
BTO
PENN NATL GAMNG
PENN
-0.15
N/A
88.89%
Thursday
BTO
EDGEWELL PERSNL
EPC
0.66
0.68
10.42%
Thursday
BTO
SUBURB PROPANE
SPH
0.67
0.27
-17.86%
Thursday
BTO
VIRTU FINL INC
VIRT
0.21
0.16
-42.86%
Thursday
BTO
HARTFORD FIN SV
HIG
0.95
1.07
11.58%
Thursday
AMC
VISA INC-A
V
0.78
0.69
6.85%
Thursday
AMC
AMGEN INC
AMGN
2.78
2.61
8.24%
Thursday
AMC
ESSEX PPTY TR
ESS
2.82
2.63
1.81%
Thursday
AMC
KIMCO REALTY CO
KIM
0.38
0.37
123.53%
Thursday
AMC
MOTOROLA SOLUTN
MSI
1.8
1.5
14.04%
Thursday
AMC
CHIPOTLE MEXICN
CMG
0.54
2.17
-50.00%
Thursday
AMC
PERKINELMER INC
PKI
0.86
0.86
3.03%
Thursday
AMC
HANESBRANDS INC
HBI
0.57
0.44
0.00%
Thursday
AMC
APARTMENT INVT
AIV
0.6
0.58
-1.79%
Thursday
AMC
METTLER-TOLEDO
MTD
5.11
4.65
6.58%
Thursday
AMC
AMAZON.COM INC
AMZN
1.41
1
-38.82%
Thursday
AMC
BRISTOW GROUP
BRS
-0.47
0.67
32.69%
Thursday
AMC
CENTRAL GARDEN
CENT
0.03
0.01
160.00%
Thursday
AMC
VALIDUS HOLDING
VR
0.78
1.24
-1.92%
Thursday
AMC
ACETO CORP
ACET
0.34
0.36
-3.45%
Thursday
AMC
DCT INDUSTRIAL
DCT
0.57
0.53
10.91%
Thursday
AMC
PENNYMAC MORTGE
PMT
0.41
0.21
28.95%
Thursday
AMC
SKYWEST INC
SKYW
0.51
0.49
11.11%
Thursday
AMC
EPLUS INC
PLUS
1.63
1.4
30.00%
Thursday
AMC
SELECT INS GRP
SIGI
0.75
0.81
-19.48%
Thursday
AMC
XPLORE TECH CP
XPLR
0.01
0.07
100.00%
Thursday
AMC
CALLAWAY GOLF
ELY
-0.17
-0.33
45.45%
Thursday
AMC
HUB GROUP INC-A
HUBG
0.47
0.63
-1.82%
Thursday
AMC
DECKERS OUTDOOR
DECK
4.24
4.78
3.36%
Thursday
AMC
PAYLOCITY HLDG
PCTY
-0.08
-0.01
42.86%
Thursday
AMC
FORTINET INC
FTNT
0.08
0.03
133.33%
Thursday
AMC
ATHENAHEALTH IN
ATHN
0.27
0.45
66.67%
Thursday
AMC
GOPRO INC-A
GPRO
0.09
-0.21
-29.63%
Thursday
AMC
NATURAL GROCERS
NGVC
0.14
0.17
-22.22%
Thursday
AMC
TABLEAU SOFTWAR
DATA
-0.37
-0.57
-14.29%
Thursday
AMC
DEVRY EDUCATION
DV
0.73
0.68
9.76%
Thursday
AMC
PIXELWORKS INC
PXLW
-0.03
-0.11
42.86%
Thursday
AMC
RUDOLPH TECH
RTEC
0.18
0.13
-7.41%
Thursday
AMC
MINERAL TECH
MTX
1.07
1
0.86%
Thursday
AMC
ULTRATECH STEP
UTEK
0.12
-0.27
29.41%
Thursday
AMC
ENOVA INTL INC
ENVA
0.21
0.13
33.33%
Thursday
AMC
AMER MOVIL-ADR
AMX
-0.04
0.28
-82.35%
Thursday
AMC
M/I HOMES INC
MHO
1.06
0.59
0.00%
Thursday
AMC
SENSUS HEALTHCR
SRTS
-0.03
N/A
100.00%
Thursday
AMC
HANOVER INSURAN
THG
1.59
1.82
2.81%
Thursday
AMC
COMP SCIENCE
CSC
0.71
0.71
27.08%
Thursday
AMC
CROWN HLDGS INC
CCK
0.71
0.7
2.31%
Thursday
AMC
KITE REALTY GRP
KRG
0.51
0.5
0.00%
Thursday
AMC
MUELLER WATER
MWA
0.05
0.04
-5.56%
Thursday
AMC
FIREEYE INC
FEYE
-0.49
-0.73
32.35%
Thursday
AMC
CYPRESS SEMICON
CY
0.07
0.06
-12.50%
Thursday
AMC
GIGAMON INC
GIMO
0.18
0.12
23.08%
Thursday
AMC
POST HOLDINGS
POST
0.54
0.52
41.86%
Thursday
AMC
ESTERLINE TECHN
ESL
0.46
0.62
23.27%
Thursday
AMC
PENNYMAC FIN SV
PFSI
0.77
0.58
20.45%
Thursday
AMC
OPEN TEXT CORP
OTEX
0.29
0.49
67.35%
Thursday
AMC
SIMPSON MFG INC
SSD
0.4
0.3
10.71%
Thursday
AMC
DEUTSCHE BK AG
DB
N/A
-1.14
N/A
Thursday
N/A
INFINEON TECH
IFNNY
0.19
N/A
-8.00%
Thursday
N/A
EISAI CO LTD
ESALY
N/A
N/A
N/A
Thursday
N/A
FERRARI NV
RACE
0.53
0.31
22.22%
Thursday
N/A
DANSKE BANK A/
DNKEY
N/A
N/A
22.58%
Thursday
N/A
DNB ASA
DNHBY
N/A
N/A
N/A
Thursday
N/A
KOBE STEEL-ADR
KBSTY
N/A
-0.31
N/A
Thursday
N/A
MITSUBIS CP-ADR
MSBHY
N/A
0.88
N/A
Thursday
N/A
OLYMPUS CORP
OCPNY
N/A
0.57
N/A
Thursday
N/A
DENSO CORP
DNZOY
0.36
0.41
N/A
Thursday
N/A
KAO CORP ADR
KCRPY
N/A
N/A
N/A
Thursday
N/A
LYONDELLBASEL-A
LYB
2.09
2.2
0.43%
Friday
BTO
CLOROX CO
CLX
1.22
1.14
-4.23%
Friday
BTO
PHILLIPS 66
PSX
0.38
1.31
17.98%
Friday
BTO
WEYERHAEUSER CO
WY
0.15
0.24
4.55%
Friday
BTO
AUTONATION INC
AN
0.96
0.96
-2.63%
Friday
BTO
HERSHEY CO/THE
HSY
1.08
1.08
9.32%
Friday
BTO
HONDA MOTOR
HMC
0.49
0.57
64.41%
Friday
BTO
STORA ENSO -ADR
SEOAY
0.17
0.85
5.56%
Friday
BTO
APOLLO GLOBAL-A
APO
0.77
0.08
13.73%
Friday
BTO
WISDOMTREE INV
WETF
0.06
0.15
0.00%
Friday
BTO
BERRY PLASTICS
BERY
0.45
0.35
23.73%
Friday
BTO
PHILLIPS 66 PTR
PSXP
0.77
0.61
0.00%
Friday
BTO
ADIENT PLC
ADNT
2.09
N/A
N/A
Friday
BTO
SAIA INC
SAIA
0.43
0.41
8.00%
Friday
BTO
MADISON SQUAR-A
MSG
2.06
1.74
0.00%
Friday
BTO
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Earnings Growth Returns, Will it Continue?
Corporate earnings have started growing again, with growth in the ongoing Q4 earnings season on track to reach its highest level in 8 quarters. Growth is still modest – the Q4 earnings growth is currently on track to reach +5.2% and the final growth tally for the quarter will at best be a couple of percentage points higher. But this is still a notable improvement over what we were experiencing in the recent past.
Please recall that earnings growth turned positive only in 2016 Q3, having declined in each of the preceding 5 quarters, as the chart below of year-over-year earnings growth for the S&P 500 index shows.
Positive surprises, particularly on the earnings front, are tracking below other historical periods at this stage. We will see if this trend continues this week as we enter the heart of the earnings season, with more 400 companies coming out with quarterly results, including 106 S&P 500 members.
Q4 Scorecard (as of January 27, 2017)
We have crossed the one-third mark in the Q4 reporting cycle, with results from 170 S&P 500 members, or 33.9% of the index’s total membership, already out. Total earnings for these 170 index members are up +6.0% on +3.1% higher revenues, with 64.1% beating EPS estimates and 54.7% coming ahead of top-line expectations.
The table below provides the current Q4 scorecard
The charts below provide a comparison of the results thus far with what we have seen from this same group of 170 S&P 500 members in other recent periods.
As you can see, the Q4 growth pace is notably tracking above what we had seen from the same group of 170 index members in other recent periods. But positive surprises (right-hand chart above) are tracking on the low side at this stage, particularly on the earnings front. The 64.1% proportion of Q4 companies beating EPS estimates compares to 81.2% in the preceding quarter, 76.3% as the 4-quarter average and 72.2% as the 12-quarter average. Positive revenue surprises are tracking below what we had seen from the same group of companies in Q3, but are roughly in-line with historical periods.
The chart below compares the proportion of companies reporting Q4 results that are beating both EPS and revenue estimates with what this same group of companies had reported in other recent periods.
Standout Sectors
Sectors with strong growth and better than expected results include the Finance, Technology, Construction, Industrial Products, Basic Materials and Consumer Discretionary sectors. Positive surprises for all of these sectors are tracking above the index level.
Finance: With results from 57.7% of the sector’s market cap in the S&P 500 index already out, total earnings for the sector are up +11.3% from the same period last year on +3.1% higher revenues, with +66.7% beating EPS estimates and +46.2% beating top-line estimates.
This is a better growth performance than we have seen from the sector in other recent periods, as the comparison charts below show. Please note that positive surprises are as hard to come by in the Finance sector as they are elsewhere.
Strong Finance sector growth is a big driver of the aggregate growth performance for the S&P 500 index as a whole. Excluding the Finance sector, the Q4 growth pace still compares favorably with other recent periods, but a lot less so, as the right-hand chart below shows.
Technology: For the Technology sector, we now have Q4 results from 59.6% of the sector’s total market cap. Total earnings for these companies are up +7.2% from the same period last year on +4.9% higher revenues, with 69% beating EPS estimates and 82.8% beating revenue estimates.
We will see what this week’s Apple (AAPL - Free Report) and Facebook reports bring, but the sector’s Q4 earnings and revenue growth is about in-line with what we saw from this same group of Tech companies in the preceding quarter (2016 Q3), though it is notably tracking above the 4-quarter and 12-quarter averages. With respect to positive surprises, Tech companies appear to be beating EPS estimates at a lower proportion than has historically been the case, though the proportion of positive earnings surprises remains above the index level. Revenue surprises, on the other hand, are tracking notably above historical periods.
Key Reports for the Week of January 30th
Tuesday – 1/31/2017: Monday has a relatively light reporting docket, but Tuesday is very busy with more than 90 companies reporting results, including 33 S&P 500 members (of which 22 are in the morning). The focus will be on Apple (AAPL - Free Report) , which reports after the market’s close. Exxon (XOM - Free Report) , Pfizer (PFE - Free Report) , Eli Lilly (LLY - Free Report) and Under Armour (UAA - Free Report) will be the key reports in the morning.
Apple is expected to report $3.22 in earnings on $76.2 billion in revenues, which compare to $3.28 on $75.9 billion in revenues in the year-earlier period. The stock is up +9.7% since November 8th vs. +7% for the S&P 500 index and +6.1% for the Zacks Technology sector. December quarter estimates have been stable in recent days, though they have come down for the March quarter.
Wednesday – 2/01/2017: Facebook is the most high profile of the 27 index members reporting results today (it will report after the market’s close). The focus will be on the social media giant’s ad revenues and daily active users, but the current Zacks Consensus EPS estimate is $1.13 on $8.4 billion in revenues. This compares to EPS of $0.59 on $5.8 billion in revenues in the year-earlier period. Estimates have modestly inched up in recent days. The stock has performed in-line with the Zacks Tech sector since November 8th, up +6.3% vs. +6.1%.
Thursday – 2/02/2017: On a busy reporting day with 35 index members coming out with Q4 results (23 in the morning & 12 after the market’s close), the notable reports are from CME Group (CME - Free Report) and International Paper (IP - Free Report) in the morning and Amazon (AMZN - Free Report) in the evening.
Amazon is expected to report $1.41 in earnings (up +41.5% year over year) on $44.8 billion in revenues (up +25.4% in revenues). Estimates have come down ahead of the earnings report, but Amazon has never really been an EPS story; it is all top-line growth, particularly gains in its cloud business, Amazon Web Services. Amazon, along with Microsoft (MSFT - Free Report) , which came out with impressive cloud numbers of its own, has staked a well-regarded claim to leadership in the fast-growing cloud business. The stock has been a strong performer over the past year, up +31.4% vs. +12.4% gain for the Zacks Retail sector.
Friday – 2/03/2017: AutoNation (AN - Free Report) and Hershey (HSY - Free Report) are the notable reports today, both in the morning.
Q4 Expectations As a Whole
For Q4 as a whole, combining the actual results from the 170 S&P 500 members that have reported with estimates for the still-to-come 330 companies, total earnings are expected to be up +5.2% from the same period last year on +4.0% higher revenues. This would follow the +3.8% growth in Q3 earnings on +2.3% higher revenues, the first instance of positive earnings growth for the index after five quarters of back-to-back declines. Comparisons for the Energy sector, a big driver of the earnings recession, turn positive in Q4, with the sector’s earnings growth turning positive for the first time after 8 quarters of declines.
The chart below shows the Q3 earnings growth contrasted with declines in the preceding 5 quarters. As you can see in the chart below, the growth pace is expected to ramp up in 2017.
The table below shows the summary picture Q4 contrasted with what was actually achieved in the preceding quarter.
For a complete analysis of the Q4 earnings season, please check out our weekly Earnings Trends report - 3 Takeaways from the Q4 Earnings Season
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Here is a list of the 413 companies reporting this week, including 106 S&P 500 members.