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.
Nike, FedEx, Adobe, Constellation and ConAgra are part of Zacks Earnings Preview
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 2, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Nike (NKE - Free Report) , FedEx (FDX - Free Report) , Adobe (ADBE - Free Report) , Constellation Brands (STZ - Free Report) and ConAgra (CAG - Free Report) .
Tech Earnings Impress in the Face of Economic Headwinds
Q3 Earnings Season Gets Underway
Rising treasury bond yields have become a major headwind for stocks. This issue took center stage following the latest Fed dot plot that appeared to push back the starting point of the central bank’s eventual unwinding of its monetary policy tightening.
As we have noted here before, we see the seemingly hawkish Fed posture as nothing more than an insurance policy for the central bank that will come in handy should the recent favorable momentum on the inflation front start stalling.
It is prudent on the Fed’s part to have complete confidence on the inflation question before changing course, though we remain of the view that the enduring trend on the inflation front remains favorable even as the macroeconomic backdrop remains far more resilient relative to earlier expectations.
The economy’s resilience has been showing up in the positive turn in the earnings outlook that we have been flagging in recent months. Specifically, the earnings estimates revisions trend notably stabilized in early April this year after steadily coming down for almost a year.
Had it not been for the Energy sector weakness, whose estimates had been steadily coming down this year before reversing course in recent days and going back up, aggregate earnings estimates would be modestly up since early April 2023.
Sectors enjoying positive estimate revisions in this time period include Tech, Construction, Autos, Consumer Discretionary, Industrial Products, and Retail.
We are seeing a similar revisions trend at play concerning estimates for 2023 Q3, whose advanced results have started coming out already.
The expectation currently is of S&P 500 earnings declining by -1.9% in Q3 from the same period last year on +0.9% higher revenues. This would follow the -7.1% decline on +1.1% higher revenues in 2023 Q2.
2023 Q3 is expected to be the last period of declining earnings for the index, with positive growth resuming from 2023 Q4 onwards. In fact, had it not been for the Energy sector drag, earnings growth in 2023 Q3 would already be positive.
Excluding the Energy sector, however, net margins would be modestly up from the year-earlier period.
One sector that has made significant progress on the margins front is the Tech sector, whose year-over-year comparison turned positive in the preceding period and is expected to expand further this quarter.
Look at current expectations for next year and the year after to understand the disconnect between the reality of current bottom-up aggregate earnings estimates and the seemingly never-ending worries about an impending economic downturn. That said, most economic analysts have been steadily lowering their recessionary odds in recent months.
This Week’s Notable Earnings Releases
The Q3 earnings season will really get going when the big banks start coming out with their quarterly numbers in mid-October. But the reporting cycle has actually gotten underway already, with results from 16 S&P 500 members out as of Friday, September 29th.
These 16 S&P 500 members include bellwethers like Nike, FedEx, Adobe and others. We have another 4 S&P 500 members on deck to report results this week, including Constellation Brands, ConAgra and others.
FedEx, Adobe, Nike, and all of these other early reporters are coming out with their fiscal August-quarter results, which we and other research organizations count as part of the Q3 tally. We will have seen roughly two dozen such August-quarter results by the time JPMorgan comes out with its quarterly results on October 13th.
For the 16 S&P 500 members that have reported already, total earnings and revenues are up +0.7% and +4.5% from the same period last year, with 87.5% beating EPS estimates and 75% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>What Can We Expect from Q3 Earnings?
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nike, FedEx, Adobe, Constellation and ConAgra are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – October 2, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Nike (NKE - Free Report) , FedEx (FDX - Free Report) , Adobe (ADBE - Free Report) , Constellation Brands (STZ - Free Report) and ConAgra (CAG - Free Report) .
Tech Earnings Impress in the Face of Economic Headwinds
Q3 Earnings Season Gets Underway
Rising treasury bond yields have become a major headwind for stocks. This issue took center stage following the latest Fed dot plot that appeared to push back the starting point of the central bank’s eventual unwinding of its monetary policy tightening.
As we have noted here before, we see the seemingly hawkish Fed posture as nothing more than an insurance policy for the central bank that will come in handy should the recent favorable momentum on the inflation front start stalling.
It is prudent on the Fed’s part to have complete confidence on the inflation question before changing course, though we remain of the view that the enduring trend on the inflation front remains favorable even as the macroeconomic backdrop remains far more resilient relative to earlier expectations.
The economy’s resilience has been showing up in the positive turn in the earnings outlook that we have been flagging in recent months. Specifically, the earnings estimates revisions trend notably stabilized in early April this year after steadily coming down for almost a year.
Had it not been for the Energy sector weakness, whose estimates had been steadily coming down this year before reversing course in recent days and going back up, aggregate earnings estimates would be modestly up since early April 2023.
Sectors enjoying positive estimate revisions in this time period include Tech, Construction, Autos, Consumer Discretionary, Industrial Products, and Retail.
We are seeing a similar revisions trend at play concerning estimates for 2023 Q3, whose advanced results have started coming out already.
The expectation currently is of S&P 500 earnings declining by -1.9% in Q3 from the same period last year on +0.9% higher revenues. This would follow the -7.1% decline on +1.1% higher revenues in 2023 Q2.
2023 Q3 is expected to be the last period of declining earnings for the index, with positive growth resuming from 2023 Q4 onwards. In fact, had it not been for the Energy sector drag, earnings growth in 2023 Q3 would already be positive.
Excluding the Energy sector, however, net margins would be modestly up from the year-earlier period.
One sector that has made significant progress on the margins front is the Tech sector, whose year-over-year comparison turned positive in the preceding period and is expected to expand further this quarter.
Look at current expectations for next year and the year after to understand the disconnect between the reality of current bottom-up aggregate earnings estimates and the seemingly never-ending worries about an impending economic downturn. That said, most economic analysts have been steadily lowering their recessionary odds in recent months.
This Week’s Notable Earnings Releases
The Q3 earnings season will really get going when the big banks start coming out with their quarterly numbers in mid-October. But the reporting cycle has actually gotten underway already, with results from 16 S&P 500 members out as of Friday, September 29th.
These 16 S&P 500 members include bellwethers like Nike, FedEx, Adobe and others. We have another 4 S&P 500 members on deck to report results this week, including Constellation Brands, ConAgra and others.
FedEx, Adobe, Nike, and all of these other early reporters are coming out with their fiscal August-quarter results, which we and other research organizations count as part of the Q3 tally. We will have seen roughly two dozen such August-quarter results by the time JPMorgan comes out with its quarterly results on October 13th.
For the 16 S&P 500 members that have reported already, total earnings and revenues are up +0.7% and +4.5% from the same period last year, with 87.5% beating EPS estimates and 75% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>What Can We Expect from Q3 Earnings?
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.
See Stocks Free >>
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/performance for information about the performance numbers displayed in this press release.