Update on Q2 Earnings results…

Summary of Q2 earnings results for the S&P:

· Q2 EPS growth was -0.4% – this is better than the -2.7% expected.

· Revenue growth for Q2 was 4%. This is better than the 3.8% growth expected.

· Margins are down 50bps YoY for the S&P.

· Companies with higher international exposure are seeing lower growth because of strong dollar and weaker macro environment outside the US – see charts below.

· Percent of companies beating on revenue (56%) is well below average.

· % of companies issuing negative EPS guidance for Q3 is above average

· Highest earnings growth: health care and financials

· Biggest decline in earnings: materials and industrials. Within materials Metals & Mining earnings were down -76%. Within industrials Aerospace & Defense earnings were down -50%.

· Highest revenue growth: communication services and health care.

· Biggest revenue decline: materials.

· For CY 2019, analysts are projecting 1.5% earnings growth and 4.4% revenue growth.

· For CY 2020, analysts are projecting 10.7% earnings growth and 5.6% revenue growth.