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Amazon, Disney, PayPal and D.R. Horton are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – November 8, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon.com, Inc. (AMZN - Free Report) , The Walt Disney Company (DIS - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and D.R. Horton, Inc. (DHI - Free Report) .
Are Earnings Estimates Going Down?
Earnings and revenue growth has come down in the ongoing Q3 earnings season from the first-half’s breakneck speed, but it is still very high.
The unfavorable comparison to the first half of the year isn’t only with respect to the growth rates, as the proportion of these companies beating EPS and revenue estimates is also tracking below what we had seen from this same group earlier in the year.
The decelerated growth pace notwithstanding, aggregate Q3 earnings for the S&P 500 index are on track to reach a new all-time quarterly record, surpassing the record set in the preceding quarter. The 2021 Q3 aggregate total stands at $475.8 billion.
The one notable disconcerting development this earnings season is on the revisions front, with estimates for the current period (2021 Q4) turning modestly lower over the last few days.
This is in contrast to the persistent positive revisions trend that we have been seeing since the Summer of 2020. While the magnitude of negative revisions in the aggregate to Q4 estimates is fairly modest, it is relatively more pronounced for the Retail and Transportation sectors.
A case in point is Amazon, part of the Zacks Retail sector, whose Q4 consensus EPS estimate has dropped from $12.13 a few weeks back to $5.11 at present.
Partly offsetting these estimate cuts are rising estimates for the Energy sector, which have been steadily going up lately.
While estimates for 2021 Q4 have modestly come down, we are seeing the opposite for next year’s estimates. Earnings estimates for full-year 2022 have gone up +24.8% since January 2020 and +10% since the start of October.
Sectors enjoying the strongest positive estimate revisions include Consumer Discretionary, Autos, Transportation, Aerospace, Energy, Construction, Business Services and Finance.
The bottom line on the revisions front is that it still remains positive, with estimates for next year going up even though they have trended down modestly for the current period (2021 Q4).
Q3 Earnings Season Scorecard
Including all the results that came out through Friday, November 5th, we now have Q3 results from 445 S&P 500 members or 89.2% of the index’s total membership. Total earnings (or aggregate net income) for these companies are up +42.9% from the same period last year on +18.6% lower revenues, with 80.2% beating EPS estimates and 74.4% beating revenue estimates. The proportion of these companies beating both EPS and revenue estimates is 62.9%, the blended beats percentage.
This week brings Q3 results from more than 850 companies, including 13 S&P 500 members. The notable index members reporting results this week include Disney, PayPal and DR Horton.
For the Technology sector, we now have Q3 results from 82.5% of the sector’s market capitalization in the S&P 500 index. Total Q3 earnings for these Tech companies are up +35.8% from the same period last year on +17.3% higher revenues, with 86.4% beating EPS estimates and 71.2% beating revenue estimates.
The proportion of Tech companies beating revenue estimates has been clearly on the low side this earnings season.
Expectations for Q3 & Beyond
Looking at the quarter as a whole, combining the actual results that have come out with estimates for the still-to-come companies, total Q3 earnings for the S&P 500 index are expected to be up +39.7% from the same period last year on +16.5% higher revenues.
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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Amazon, Disney, PayPal and D.R. Horton are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – November 8, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon.com, Inc. (AMZN - Free Report) , The Walt Disney Company (DIS - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and D.R. Horton, Inc. (DHI - Free Report) .
Are Earnings Estimates Going Down?
Earnings and revenue growth has come down in the ongoing Q3 earnings season from the first-half’s breakneck speed, but it is still very high.
The unfavorable comparison to the first half of the year isn’t only with respect to the growth rates, as the proportion of these companies beating EPS and revenue estimates is also tracking below what we had seen from this same group earlier in the year.
The decelerated growth pace notwithstanding, aggregate Q3 earnings for the S&P 500 index are on track to reach a new all-time quarterly record, surpassing the record set in the preceding quarter. The 2021 Q3 aggregate total stands at $475.8 billion.
The one notable disconcerting development this earnings season is on the revisions front, with estimates for the current period (2021 Q4) turning modestly lower over the last few days.
This is in contrast to the persistent positive revisions trend that we have been seeing since the Summer of 2020. While the magnitude of negative revisions in the aggregate to Q4 estimates is fairly modest, it is relatively more pronounced for the Retail and Transportation sectors.
A case in point is Amazon, part of the Zacks Retail sector, whose Q4 consensus EPS estimate has dropped from $12.13 a few weeks back to $5.11 at present.
Partly offsetting these estimate cuts are rising estimates for the Energy sector, which have been steadily going up lately.
While estimates for 2021 Q4 have modestly come down, we are seeing the opposite for next year’s estimates. Earnings estimates for full-year 2022 have gone up +24.8% since January 2020 and +10% since the start of October.
Sectors enjoying the strongest positive estimate revisions include Consumer Discretionary, Autos, Transportation, Aerospace, Energy, Construction, Business Services and Finance.
The bottom line on the revisions front is that it still remains positive, with estimates for next year going up even though they have trended down modestly for the current period (2021 Q4).
Q3 Earnings Season Scorecard
Including all the results that came out through Friday, November 5th, we now have Q3 results from 445 S&P 500 members or 89.2% of the index’s total membership. Total earnings (or aggregate net income) for these companies are up +42.9% from the same period last year on +18.6% lower revenues, with 80.2% beating EPS estimates and 74.4% beating revenue estimates. The proportion of these companies beating both EPS and revenue estimates is 62.9%, the blended beats percentage.
This week brings Q3 results from more than 850 companies, including 13 S&P 500 members. The notable index members reporting results this week include Disney, PayPal and DR Horton.
For the Technology sector, we now have Q3 results from 82.5% of the sector’s market capitalization in the S&P 500 index. Total Q3 earnings for these Tech companies are up +35.8% from the same period last year on +17.3% higher revenues, with 86.4% beating EPS estimates and 71.2% beating revenue estimates.
The proportion of Tech companies beating revenue estimates has been clearly on the low side this earnings season.
Expectations for Q3 & Beyond
Looking at the quarter as a whole, combining the actual results that have come out with estimates for the still-to-come companies, total Q3 earnings for the S&P 500 index are expected to be up +39.7% from the same period last year on +16.5% higher revenues.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Looking At Margins in the Face of Inflationary and Logistical Issues
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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.