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FedEx, Oracle and Nike are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – March 19, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes FedEx (FDX - Free Report) , Oracle (ORCL - Free Report) and Nike (NKE - Free Report) .
It is too early to start talking about the 2018 Q1 earnings season, as we are almost a month away from the big banks kicking-off the latest reporting cycle. That’s when everyone in the market will start paying attention to the Q1 earnings season. Unfortunately for us, we don’t have the luxury to wait that long as we are responsible for maintaining the ‘books’ on every earnings season.
While we haven’t (officially) closed the books on the 2017 Q4 earnings season yet (we have results from 499 S&P 500 members at this stage), the 2018 Q1 earnings season has actually gotten underway already.
The bulk of 2018 Q1 results will be comprised of companies coming out with fiscal March-quarter results. But as we all know, fiscal and calendar quarters don’t match for all companies, as is the case with Adobe, AutoZone and Costco whose fiscal quarters ended in February. We club such fiscal February-quarter results as part of our March-quarter tally.
It is in this context that the 2018 Q1 earnings season has gotten underway for us already. We have another 10 S&P 500 members with fiscal quarters ending in February on deck to report such 2018 Q1 results this week, which includes a number of industry leaders like FedEx, Oracle, Nike and others.
The fact is that by the time the big banks come around to report March-quarter results (Alcoa thankfully no longer has this honor), we will have seen Q1 results from almost two dozen S&P 500 members.
Expectations for 2018 Q1
The strong momentum we saw in the preceding earnings season is expected to continue this reporting cycle as well, with total earnings for the S&P 500 index expected to be up +15.5% from the same period last year on +7.2% higher revenues. This would follow the +13.5% earnings growth on +8.5% revenue growth in the 2017 Q4 earnings season, the best quarterly performance in more than 6 years.
There were two aspects of the preceding earning season that really stood out and put that reporting cycle in a category of its own. It will be interesting to see to what extent we see a repeat performance on those two counts in the 2018 Q1 earnings season.
These two standout features of the 2017 Q4 earnings season were the very strong momentum on the revenue front and impressive turnaround on the estimate revisions front.
The revenue momentum likely reflected a combination of the synchronized global growth environment and a favorable foreign exchange backdrop. With both of those factors still very much in play in Q1 as well, we can reasonably expect to see the revenue momentum trend continue this earnings season as well.
Earnings growth expectations for 2018 Q1 moved up significantly since mid-December 2017. This represented a major trend shift relative to what we have been seeing over the last many years when estimates would actually be moving in the opposite direction. To be fair, the revisions trend had stabilized in the preceding quarters as well, with estimates for 2017 Q4 essentially remaining unchanged in the three months ahead of the start of that reporting cycle.
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/performance for information about the performance numbers displayed in this press release.
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FedEx, Oracle and Nike are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – March 19, 2018 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes FedEx (FDX - Free Report) , Oracle (ORCL - Free Report) and Nike (NKE - Free Report) .
To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Q1 Earnings Season to Show Growth Acceleration
It is too early to start talking about the 2018 Q1 earnings season, as we are almost a month away from the big banks kicking-off the latest reporting cycle. That’s when everyone in the market will start paying attention to the Q1 earnings season. Unfortunately for us, we don’t have the luxury to wait that long as we are responsible for maintaining the ‘books’ on every earnings season.
While we haven’t (officially) closed the books on the 2017 Q4 earnings season yet (we have results from 499 S&P 500 members at this stage), the 2018 Q1 earnings season has actually gotten underway already.
The bulk of 2018 Q1 results will be comprised of companies coming out with fiscal March-quarter results. But as we all know, fiscal and calendar quarters don’t match for all companies, as is the case with Adobe, AutoZone and Costco whose fiscal quarters ended in February. We club such fiscal February-quarter results as part of our March-quarter tally.
It is in this context that the 2018 Q1 earnings season has gotten underway for us already. We have another 10 S&P 500 members with fiscal quarters ending in February on deck to report such 2018 Q1 results this week, which includes a number of industry leaders like FedEx, Oracle, Nike and others.
The fact is that by the time the big banks come around to report March-quarter results (Alcoa thankfully no longer has this honor), we will have seen Q1 results from almost two dozen S&P 500 members.
Expectations for 2018 Q1
The strong momentum we saw in the preceding earnings season is expected to continue this reporting cycle as well, with total earnings for the S&P 500 index expected to be up +15.5% from the same period last year on +7.2% higher revenues. This would follow the +13.5% earnings growth on +8.5% revenue growth in the 2017 Q4 earnings season, the best quarterly performance in more than 6 years.
There were two aspects of the preceding earning season that really stood out and put that reporting cycle in a category of its own. It will be interesting to see to what extent we see a repeat performance on those two counts in the 2018 Q1 earnings season.
These two standout features of the 2017 Q4 earnings season were the very strong momentum on the revenue front and impressive turnaround on the estimate revisions front.
The revenue momentum likely reflected a combination of the synchronized global growth environment and a favorable foreign exchange backdrop. With both of those factors still very much in play in Q1 as well, we can reasonably expect to see the revenue momentum trend continue this earnings season as well.
Earnings growth expectations for 2018 Q1 moved up significantly since mid-December 2017. This represented a major trend shift relative to what we have been seeing over the last many years when estimates would actually be moving in the opposite direction. To be fair, the revisions trend had stabilized in the preceding quarters as well, with estimates for 2017 Q4 essentially remaining unchanged in the three months ahead of the start of that reporting cycle.
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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/performance for information about the performance numbers displayed in this press release.