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Has the Profit Cycle Bottomed?

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The Q3 earnings reports continue to be better than expected even as we see the final phase of the reporting cycle through quarterly results from the likes of Walmart (WMT - Free Report) , Target (TGT - Free Report) and other conventional retailers.

Overall earnings growth is on track to be positive for Q3, the first year-over-year earnings growth after three back-to-back quarters of declining earnings.

In terms of the current scorecard, we now have results from 468 S&P 500 members or 93.6% of the index’s total membership. Total Q3 earnings for these companies are up +1.5% from the same period last year on +1.8% higher revenues, with 81.6% beating EPS estimates and 62% beating revenue estimates.

Looking at Q3 as a whole, combining the actuals the actuals that have come out with estimates for the still-to-come companies, total S&P 500 earnings are on track to increase +2.8% from the same period last year on +1.9% higher revenues.

Excluding the Energy sector drag, Q3 earnings for the rest of the index would be up +8% from the same period last year.

For more details about the Q3 earnings season and the evolving revisions picture, please check out our weekly Earnings Trends report here >>>>> Earnings Estimates Moving Lower as Growth MOderate

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