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Zacks Earnings Trends Highlights: Target, Kohl???s and Wal-Mart
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For Immediate Release
Chicago, IL – May 24, 2018 – Zacks Director of Research Sheraz Mian says, “For full-year 2018, total earnings for the S&P 500 index are expected to be up +19.5% on +5.9% higher revenues."
Revisions Trend Fails to Impress
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:
• Results from the traditional retailers have been fairly strong, notwithstanding a few notable disappointments.
• With results from 93% of the Retail sector’s market cap in the S&P 500 out, earnings and revenue growth is on track to be notably above other historical periods, though positive revenue surprises are not as numerous as had been the trend in other recent periods.
• For the 474 S&P 500 members that have reported Q1 results already, total earnings are up +24.2% from the same period last year on +8.5% higher revenues, with 77.6% beating EPS estimates and 74.5% beating revenue estimates. The earnings season has ended for 11 of the 16 Zacks sectors.
• Except for the proportion of these 474 index members beating EPS and revenue estimates, which are tracking roughly in-line with the preceding quarter’s level, growth in Q1 is notably tracking above historical periods.
• Looking at Q1 as a whole, total earnings are expected to be up +24% from the same period last year on +8.5% higher revenues, the highest quarterly earnings growth pace in 7 years. Net Income margins for the quarter are on track to expand by 1.5 percentage points, with the strongest gains at the Finance, Technology and Energy sectors.
• Q1 Earnings growth is in double-digit territory from the year-earlier level for 13 of the 16 Zacks sectors, including the Technology and Finance sectors. The Auto sector has the weakest growth of all 16 sectors, with +0.3% earnings growth on +1.4% higher revenues.
• Energy sector earnings increased +75.7% from the same period last year on +14.2% higher revenues. Excluding the Energy sector, total S&P 500 earnings growth drops from +24.2% to +22.5%.
• For the small-cap S&P 600 index, we now have Q1 results from 89.7% of the index’s total membership. Total earnings for these companies are up +20.9% on +9.6% higher revenues, with 59% beating EPS estimates and 72% beating revenue estimates. In addition to earnings and revenue growth, revenue surprises are notably tracking above historical periods for the small caps.
• For the quarter as whole, total S&P 600 earnings are expected to be up +18.2% on +9.2% higher revenues. We have more details about small-cap data on page 28 of the full report.
• For full-year 2018, total earnings for the S&P 500 index are expected to be up +19.5% on +5.9% higher revenues. For full-year 2019, earnings are expected to be up +9.5% on +4.5% higher revenues.
• The implied ‘EPS’ for the index, calculated using current 2018 P/E of 17.4X and index close, as of May 22nd, is $156.19. Using the same methodology, the index ‘EPS’ works out to $170.98 for 2019 (P/E of 15.9X) and $187.74 for 2020 (P/E of 14.5X). The multiples for 2018 and 2019 have been calculated using the index’s total market cap and aggregate bottom-up earnings for each year.
Retail Sector Scorecard
With results from Target (TGT - Free Report) , Kohl’s (KSS - Free Report) , Wal-Mart (WMT - Free Report) and other traditional retailers out now, we have Q1 results from the equivalent of 93% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Retail sector companies that have reported results are up +21.6% from the same period last year on +9.5% higher revenues, with 72.4% beating EPS estimates and 65.5% 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/performance for information about the performance numbers displayed in this press release.
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Zacks Earnings Trends Highlights: Target, Kohl???s and Wal-Mart
For Immediate Release
Chicago, IL – May 24, 2018 – Zacks Director of Research Sheraz Mian says, “For full-year 2018, total earnings for the S&P 500 index are expected to be up +19.5% on +5.9% higher revenues."
Revisions Trend Fails to Impress
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:
• Results from the traditional retailers have been fairly strong, notwithstanding a few notable disappointments.
• With results from 93% of the Retail sector’s market cap in the S&P 500 out, earnings and revenue growth is on track to be notably above other historical periods, though positive revenue surprises are not as numerous as had been the trend in other recent periods.
• For the 474 S&P 500 members that have reported Q1 results already, total earnings are up +24.2% from the same period last year on +8.5% higher revenues, with 77.6% beating EPS estimates and 74.5% beating revenue estimates. The earnings season has ended for 11 of the 16 Zacks sectors.
• Except for the proportion of these 474 index members beating EPS and revenue estimates, which are tracking roughly in-line with the preceding quarter’s level, growth in Q1 is notably tracking above historical periods.
• Looking at Q1 as a whole, total earnings are expected to be up +24% from the same period last year on +8.5% higher revenues, the highest quarterly earnings growth pace in 7 years. Net Income margins for the quarter are on track to expand by 1.5 percentage points, with the strongest gains at the Finance, Technology and Energy sectors.
• Q1 Earnings growth is in double-digit territory from the year-earlier level for 13 of the 16 Zacks sectors, including the Technology and Finance sectors. The Auto sector has the weakest growth of all 16 sectors, with +0.3% earnings growth on +1.4% higher revenues.
• Energy sector earnings increased +75.7% from the same period last year on +14.2% higher revenues. Excluding the Energy sector, total S&P 500 earnings growth drops from +24.2% to +22.5%.
• For the small-cap S&P 600 index, we now have Q1 results from 89.7% of the index’s total membership. Total earnings for these companies are up +20.9% on +9.6% higher revenues, with 59% beating EPS estimates and 72% beating revenue estimates. In addition to earnings and revenue growth, revenue surprises are notably tracking above historical periods for the small caps.
• For the quarter as whole, total S&P 600 earnings are expected to be up +18.2% on +9.2% higher revenues. We have more details about small-cap data on page 28 of the full report.
• For full-year 2018, total earnings for the S&P 500 index are expected to be up +19.5% on +5.9% higher revenues. For full-year 2019, earnings are expected to be up +9.5% on +4.5% higher revenues.
• The implied ‘EPS’ for the index, calculated using current 2018 P/E of 17.4X and index close, as of May 22nd, is $156.19. Using the same methodology, the index ‘EPS’ works out to $170.98 for 2019 (P/E of 15.9X) and $187.74 for 2020 (P/E of 14.5X). The multiples for 2018 and 2019 have been calculated using the index’s total market cap and aggregate bottom-up earnings for each year.
Retail Sector Scorecard
With results from Target (TGT - Free Report) , Kohl’s (KSS - Free Report) , Wal-Mart (WMT - Free Report) and other traditional retailers out now, we have Q1 results from the equivalent of 93% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Retail sector companies that have reported results are up +21.6% from the same period last year on +9.5% higher revenues, with 72.4% beating EPS estimates and 65.5% 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/performance for information about the performance numbers displayed in this press release.