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Disney, Chipotle and Michael Kors are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – February 5, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Disney (DIS - Free Report) , Chipotle (CMG - Free Report) and Michael Kors .
The picture emerging from the Q4 earnings season is one of all around strength and momentum. Not only is an above average proportion of companies beating top- and bottom-line expectations, but estimates for the current period are also materially going up.
We are at the halfway mark in the Q4 reporting season for the S&P 500 index, with results from 251 index members already out and another 92 on deck to release results this week. We are not quite that further along in the reporting cycle for the small-cap S&P 600 index, with results from only 26% of the index’s members out.
We have a pretty good sense of the large-cap results already, with only retail and other consumer oriented operators still to report results. We will start seeing these consumer oriented reports week, with media operators like Disney, restaurant players like Chipotle and other consumer facing players like Michael Kors on deck to report results. We will know for sure only after seeing these quarterly results, but the odds are high that these consumer companies did as good in the last quarter of the year as we have been seeing from all the other sectors this earnings season.
We will discuss details of the Q4 earnings season in detail below, but I want to focus on the very impressive revisions trend that we are seeing for the current and coming quarters.
Regular readers will recall that estimates for the Q4 earnings season had held up unusually better in the run up to the start of this earnings season. But what we are witnessing with estimates for the current and following quarters is extremely positive.
The typical pattern over the last few years has been that estimates for the quarter will start coming down as we will get closer to the reporting season for that quarter. The opposite is the case with the current (and following) quarter(s), with estimates starting to go up in a notable way.
Estimates for 2018 Q1 have gone up for 15 of the 16 Zacks sectors, with the Conglomerates sector as the only whose estimates have come down. In terms of the dollar increase in Q1 estimates, the Finance sector takes the lead, followed the Energy, Technology, Medical and other sectors.
Q4 Earnings Season Scorecard (as of Friday, February 2, 2018)
Total earnings for the 251 S&P 500 members that have reported results already are up +16% from the same period last year on +10.5% higher revenues, with 80.5% beating EPS estimates and 78.1% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 64.9%.
Any way you look at these results, the Q4 earnings season is on track to be very good. Not only is growth tracking above what we had seen from the same group of 251 index members, but a record proportion are beating EPS and revenue estimates.
Expectations for Q4 As a Whole
Total Q4 earnings are expected to be up +13% from the same period last year on +7.7% higher revenues. This would follow +6.7% earnings growth in 2017 Q3 on +5.9% growth in revenues.
Q4 earnings growth expectations contrast with what is expected in the following three quarters and actual results in the preceding 5 quarters. The growth pace is expected to pick up in Q4 after dipping in the preceding quarter and continue accelerating going forward.
The Small-Cap Scorecard
For the S&P 600 index, we now have Q4 results from 156 index members or 26% of the index’s total membership. Total earnings for these 156 index members are up +12.7% from the same period last year on +10.3% higher revenues, with 67.3% beating EPS estimates and 68.6% beating revenue estimates.
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Disney, Chipotle and Michael Kors are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – February 5, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Disney (DIS - Free Report) , Chipotle (CMG - Free Report) and Michael Kors .
To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Earnings Estimates Going Higher
The picture emerging from the Q4 earnings season is one of all around strength and momentum. Not only is an above average proportion of companies beating top- and bottom-line expectations, but estimates for the current period are also materially going up.
We are at the halfway mark in the Q4 reporting season for the S&P 500 index, with results from 251 index members already out and another 92 on deck to release results this week. We are not quite that further along in the reporting cycle for the small-cap S&P 600 index, with results from only 26% of the index’s members out.
We have a pretty good sense of the large-cap results already, with only retail and other consumer oriented operators still to report results. We will start seeing these consumer oriented reports week, with media operators like Disney, restaurant players like Chipotle and other consumer facing players like Michael Kors on deck to report results. We will know for sure only after seeing these quarterly results, but the odds are high that these consumer companies did as good in the last quarter of the year as we have been seeing from all the other sectors this earnings season.
We will discuss details of the Q4 earnings season in detail below, but I want to focus on the very impressive revisions trend that we are seeing for the current and coming quarters.
Regular readers will recall that estimates for the Q4 earnings season had held up unusually better in the run up to the start of this earnings season. But what we are witnessing with estimates for the current and following quarters is extremely positive.
The typical pattern over the last few years has been that estimates for the quarter will start coming down as we will get closer to the reporting season for that quarter. The opposite is the case with the current (and following) quarter(s), with estimates starting to go up in a notable way.
Estimates for 2018 Q1 have gone up for 15 of the 16 Zacks sectors, with the Conglomerates sector as the only whose estimates have come down. In terms of the dollar increase in Q1 estimates, the Finance sector takes the lead, followed the Energy, Technology, Medical and other sectors.
Q4 Earnings Season Scorecard (as of Friday, February 2, 2018)
Total earnings for the 251 S&P 500 members that have reported results already are up +16% from the same period last year on +10.5% higher revenues, with 80.5% beating EPS estimates and 78.1% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 64.9%.
Any way you look at these results, the Q4 earnings season is on track to be very good. Not only is growth tracking above what we had seen from the same group of 251 index members, but a record proportion are beating EPS and revenue estimates.
Expectations for Q4 As a Whole
Total Q4 earnings are expected to be up +13% from the same period last year on +7.7% higher revenues. This would follow +6.7% earnings growth in 2017 Q3 on +5.9% growth in revenues.
Q4 earnings growth expectations contrast with what is expected in the following three quarters and actual results in the preceding 5 quarters. The growth pace is expected to pick up in Q4 after dipping in the preceding quarter and continue accelerating going forward.
The Small-Cap Scorecard
For the S&P 600 index, we now have Q4 results from 156 index members or 26% of the index’s total membership. Total earnings for these 156 index members are up +12.7% from the same period last year on +10.3% higher revenues, with 67.3% beating EPS estimates and 68.6% beating revenue estimates.
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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.