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Coca Cola, Cisco and Applied Materials are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – February 13, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Coca Cola (KO - Free Report) , Cisco (CSCO - Free Report) and Applied Materials (AMAT - Free Report) .
Do Earnings Revisions Support the Bullish Start to 2023?
With the bulk of the Q4 earnings season behind us, we can now say confidently that the overall picture that emerged from this reporting cycle is good enough; not great, but not bad either.
Not only has the feared earnings cliff been avoided once again, but we are starting to detect some early signs of stability and resilience in estimates for the current and coming periods.
The longstanding trend on the earnings revisions front still remains on the downside, with the outlook for a number of sectors on the weak side. But the more recent developments indicate a trend shift, likely suggesting that the worst of negative estimate revisions may now be behind us. Perhaps that's what the 'soft-landing' camp had been talking about all along.
Please note that while Q1 estimates are coming down, the pace and magnitude of cuts are notably below what we had seen ahead of the start of the last couple of earnings seasons.
The aforementioned stabilization in the revisions trend is more notable for full-year 2023 estimates for the S&P 500 index. Please note that the $1.918 trillion in expected aggregate earnings for the index in 2023 is approximate to an index 'EPS' of $216.09, down from $216.60 last week and the $216.45 tally we are on track to have seen in 2022.
We will see how the revisions trend unfolds as we go through the remainder of the 2022 Q4 reporting cycle.
Given the evolving macroeconomic environment, it is reasonable to not read too much into the revisions trend of the last few weeks. A definitive read on the revisions front will only emerge once we know for sure the end to the Fed's tightening cycle and the impact of the cumulative tightening on economic growth. That said, relative to pre-season doom-and-gloom worries, this is a fairly reassuring outcome.
2022 Q4 Earnings Season Scorecard
As of Friday, February 10th, we now have Q4 results from 346 S&P 500 members or 69.2% of the index's total membership. Total earnings for these 346 index members are down -6.2% from the same period last year on +5.6% higher revenues, with 71.1% beating EPS estimates and 69.7% beating revenue estimates.
With 60 index members on deck to report Q4 results this week, we will have seen results from more than 81% of all the index members by the end of the week. The notable companies reporting results this week are Coca Cola,Cisco, Applied Materials and others.
There is a notable deceleration in the growth trajectory, both for earnings as well as revenues. Please note that this decelerating growth trend doesn't change in any meaningful way whether we look at it on an ex-Finance or ex-Tech bases.
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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.
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Coca Cola, Cisco and Applied Materials are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – February 13, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Coca Cola (KO - Free Report) , Cisco (CSCO - Free Report) and Applied Materials (AMAT - Free Report) .
Do Earnings Revisions Support the Bullish Start to 2023?
With the bulk of the Q4 earnings season behind us, we can now say confidently that the overall picture that emerged from this reporting cycle is good enough; not great, but not bad either.
Not only has the feared earnings cliff been avoided once again, but we are starting to detect some early signs of stability and resilience in estimates for the current and coming periods.
The longstanding trend on the earnings revisions front still remains on the downside, with the outlook for a number of sectors on the weak side. But the more recent developments indicate a trend shift, likely suggesting that the worst of negative estimate revisions may now be behind us. Perhaps that's what the 'soft-landing' camp had been talking about all along.
Please note that while Q1 estimates are coming down, the pace and magnitude of cuts are notably below what we had seen ahead of the start of the last couple of earnings seasons.
The aforementioned stabilization in the revisions trend is more notable for full-year 2023 estimates for the S&P 500 index. Please note that the $1.918 trillion in expected aggregate earnings for the index in 2023 is approximate to an index 'EPS' of $216.09, down from $216.60 last week and the $216.45 tally we are on track to have seen in 2022.
We will see how the revisions trend unfolds as we go through the remainder of the 2022 Q4 reporting cycle.
Given the evolving macroeconomic environment, it is reasonable to not read too much into the revisions trend of the last few weeks. A definitive read on the revisions front will only emerge once we know for sure the end to the Fed's tightening cycle and the impact of the cumulative tightening on economic growth. That said, relative to pre-season doom-and-gloom worries, this is a fairly reassuring outcome.
2022 Q4 Earnings Season Scorecard
As of Friday, February 10th, we now have Q4 results from 346 S&P 500 members or 69.2% of the index's total membership. Total earnings for these 346 index members are down -6.2% from the same period last year on +5.6% higher revenues, with 71.1% beating EPS estimates and 69.7% beating revenue estimates.
With 60 index members on deck to report Q4 results this week, we will have seen results from more than 81% of all the index members by the end of the week. The notable companies reporting results this week are Coca Cola,Cisco, Applied Materials and others.
There is a notable deceleration in the growth trajectory, both for earnings as well as revenues. Please note that this decelerating growth trend doesn't change in any meaningful way whether we look at it on an ex-Finance or ex-Tech bases.
For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> A Steady Earnings Picture, Without a 'Cliff' in Sight
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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/performancefor information about the performance numbers displayed in this press release.