'It's the most wonderful time of the year'...
I'm talking of course about earnings season. This is always an
exciting time here at Zacks since earnings reports are often the
catalysts for significant estimate revisions from analysts, which
in turn determines the Zacks Rank for a stock.
So far, a healthy amount of companies are beating earnings
expectations in Q1. According to Zacks Director of Research
Sheraz Mian in his daily
Ahead of Wall Street
piece, 69% of companies have beaten earnings expectations, which
is slightly better than the last few earnings seasons. The
revenue picture, however, is not as bright. Less than 1-in-3
companies have delivered positive surprises on the top-line so
Approximately 16% of companies in the S&P 500 have
reported first quarter earnings, so we're still early in the
Future Zacks Rank #1's?
Companies that beat expectations on both the top and bottom
lines are good candidates for future Zacks Rank #1 (Strong Buy)
or Zacks Rank #2 (Buy) stocks. The key will be to watch the
direction of earnings estimate revisions from analysts in the
Listed below are companies that delivered solid earnings and
sales suprises on Thursday, April 18:
EPS Surprise: +25.0%
Sales Surprise: +1.0%
Sandy Spring Bancorp
EPS Surprise: +13.5%
Sales Surprise: +1.0%
Fifth Third Bancorp
EPS Surprise: +12.8%
Sales Surprise: +2.8%
EPS Surprise: +7.9%
Sales Surprise: +2.0%
There were a few negative surprises today too. These companies
each reported misses on both the top and bottom lines on
EPS Surprise: -2.0%
Sales Surprise: -4.4%
EPS Surprise: -5.7%
Sales Surprise: -1.6%
Virginia Commerce Bancorp
EPS Surprise: -10.0%
Sales Surprise: -3.6%
(If you want to see the full list of earnings and sales
surprises throughout earnings season,
be sure to visit this page
Sold on Q1 Earnings Season So Far?
Although just 16% of S&P 500 companies have reported so
far, a solid 69% of those have beaten earnings expectations, as I
noted above. Is that enough to convince you that this earnings
season will be fine? Or is it still too early to tell?
And how concerned are you about the lack of revenue beats?
Chime in below.
AUTONATION INC (AN): Free Stock Analysis
FIFTH THIRD BK (FITB): Free Stock Analysis
PRIVATEBANCORP (PVTB): Free Stock Analysis
SANDY SPRING (SASR): Free Stock Analysis
SONOCO PRODUCTS (SON): Free Stock Analysis
ULTRATECH STEP (UTEK): Free Stock Analysis
VIRGINIA COMMRC (VCBI): Free Stock Analysis
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