See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Apple Inc. (AAPL) - free report >>
Advanced Micro Devices, Inc. (AMD) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Apple Inc. (AAPL) - free report >>
Advanced Micro Devices, Inc. (AMD) - free report >>
Image: Bigstock
Has Earnings Growth Peaked Already?
The market has been unforgiving of companies that miss consensus expectations, with negative surprises on the guidance front particularly producing major stock market reactions. We saw this companies like Caterpillar (CAT - Free Report) , Advanced Micro Devices (AMD - Free Report) and many others. Weak guidance feeds into the market’s worries about consensus expectations for the coming quarters that remain at risk of downward revisions given economic weakness in emerging economies and Europe, the impact of trade tariffs and the strong U.S. dollar.
Including all of this morning’s releases, we now have Q3 results from 279 S&P 500 members or 55.8% of the index’s total membership. Total earnings for these companies are up +22.3% from the same period last year on +8.4% higher revenues, with 76.7% beating EPS estimates and 59.9% beating revenue estimates. The proportion of these 279 companies beating both EPS and revenue estimates is 50.5%.
While overall Q3 results are about in-line with historical periods, trends on the revenue front are on the weak side, as the charts below show.
You can see in the chart above that companies are finding it difficult to beat revenue estimates. In fact, the proportion of positive revenue surprises is the lowest since 2016 Q4.
For more details about the Q3 earnings season and the overall earnings picture, please check our weekly Earnings Preview report >>>> The Market’s Exaggerated Earnings Worries
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>