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 individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Earnings Trends Highlights: Netflix, General Electric, and HCA Holdings
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 5, 2022 – Zacks Director of Research Sheraz Mian says, "Looking at Q1 as a whole, total S&P 500 earnings for the period are expected to be up +8.9% from the same period last year on +12.8% higher revenues."
Breaking Down Q1 Earnings Season So Far
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
· Excluding the -16.3% decline in Finance sector earnings, Q1 earnings for the rest of the index members that have reported would be up +15.4%.
· On the flip side, the +202.1% increase in Energy sector earnings is boosting the aggregate growth picture. Excluding the Energy sector, Q1 earnings growth drops to +2.6%.
· Looking at Q1 as a whole, total S&P 500 earnings for the period are expected to be up +8.9% from the same period last year on +12.8% higher revenues. Earnings growth for the quarter drops to +3.0% on an ex-Energy basis, but improves to +16.3% on an ex-Finance basis.
While the Q1 earnings season has been fairly good and reassuring in most respects, we have nevertheless been struck by major companies' inability to beat consensus estimates.
The punishment inflicted on Netflix (NFLX - Free Report) may have been one of a kind, but we have since seen many others getting punished for coming up short, though none to the same extent as the streaming giant. General Electric (GE - Free Report) , HCA Holdings (HCA - Free Report) and a number of others fall in that category.
The aggregate beats percentages reflected a preponderance of negative surprises relative to the recent past earlier in the reporting cycle, but they have since moved into 'normal' ranges. You can see this in the EPS and revenue beats percentages for the 370 S&P 500 members that have reported Q1 results already.
Positive beats were notably hard to come by for the Finance sector, which likely had a bearing on the aggregate trend since the sector was so dominant earlier on in the reporting cycle. But the beats percentages have since improved to within 'normal' ranges.
That said, it is fair to infer that analysts, as well as management teams, are struggling with pinning down the impact of inflation and logistical bottlenecks. We have already seen plenty of references to these headwinds from the companies that have reported Q1 results so far.
Looking at Q1 as a whole, total S&P 500 earnings are expected to be up +8.9% on +12.8% higher revenues. This is a significant deceleration from what we have been seeing in the preceding quarters.
There is a rising degree of uncertainty about the outlook, being driven by a lack of macroeconomic visibility in a backdrop of Fed monetary policy tightening.
The Ukraine situation is exacerbating pre-existing supply-chain issues, which combined with its impact on oil prices, is weighing on the inflation situation in hard-to-predict ways. The evolving earnings revisions trend will reflect this macro backdrop.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Earnings Trends Highlights: Netflix, General Electric, and HCA Holdings
For Immediate Release
Chicago, IL – May 5, 2022 – Zacks Director of Research Sheraz Mian says, "Looking at Q1 as a whole, total S&P 500 earnings for the period are expected to be up +8.9% from the same period last year on +12.8% higher revenues."
Breaking Down Q1 Earnings Season So Far
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
· Excluding the -16.3% decline in Finance sector earnings, Q1 earnings for the rest of the index members that have reported would be up +15.4%.
· On the flip side, the +202.1% increase in Energy sector earnings is boosting the aggregate growth picture. Excluding the Energy sector, Q1 earnings growth drops to +2.6%.
· Looking at Q1 as a whole, total S&P 500 earnings for the period are expected to be up +8.9% from the same period last year on +12.8% higher revenues. Earnings growth for the quarter drops to +3.0% on an ex-Energy basis, but improves to +16.3% on an ex-Finance basis.
While the Q1 earnings season has been fairly good and reassuring in most respects, we have nevertheless been struck by major companies' inability to beat consensus estimates.
The punishment inflicted on Netflix (NFLX - Free Report) may have been one of a kind, but we have since seen many others getting punished for coming up short, though none to the same extent as the streaming giant. General Electric (GE - Free Report) , HCA Holdings (HCA - Free Report) and a number of others fall in that category.
The aggregate beats percentages reflected a preponderance of negative surprises relative to the recent past earlier in the reporting cycle, but they have since moved into 'normal' ranges. You can see this in the EPS and revenue beats percentages for the 370 S&P 500 members that have reported Q1 results already.
Positive beats were notably hard to come by for the Finance sector, which likely had a bearing on the aggregate trend since the sector was so dominant earlier on in the reporting cycle. But the beats percentages have since improved to within 'normal' ranges.
That said, it is fair to infer that analysts, as well as management teams, are struggling with pinning down the impact of inflation and logistical bottlenecks. We have already seen plenty of references to these headwinds from the companies that have reported Q1 results so far.
Looking at Q1 as a whole, total S&P 500 earnings are expected to be up +8.9% on +12.8% higher revenues. This is a significant deceleration from what we have been seeing in the preceding quarters.
There is a rising degree of uncertainty about the outlook, being driven by a lack of macroeconomic visibility in a backdrop of Fed monetary policy tightening.
The Ukraine situation is exacerbating pre-existing supply-chain issues, which combined with its impact on oil prices, is weighing on the inflation situation in hard-to-predict ways. The evolving earnings revisions trend will reflect this macro backdrop.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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/performancefor information about the performance numbers displayed in this press release.