So far ~80% of the companies in the S&P 500 have reported earnings.
78% have beat on EPS. The 5-year average is 70%.
77% have beat on sales which is a record.
55% of companies have issued negative guidance which is well below the 5 yr average.
For EPS beats: consumer discretionary, tech and Energy have had the highest % surprise.
For revenue beats: REITs, Industrials and utilities have had the highest % surprise.
According to FactSet, the market is rewarding upside earnings surprises less than average and punishing downside earnings surprises more than average.
For all of 2018, analysts are projecting earnings growth of 19.5% and revenue growth of 7.2%.
Forward P/E Ratio is 16x – it was 16.4x at the beginning of the year. The 5-year average is 16.1x and the 10-Year average is 14.3x.
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109
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