Less than impressive earnings results from
) after the close cap a busy earnings day that otherwise saw solid
earnings reports from
Johnson & Johnson
). While it's still relatively early with only 53 S&P 500
results (as of Tuesday, October 16th), we are seeing a repeat
performance of what we saw in the previous quarter when companies
were finding it difficult to achieve revenue growth.
Here is an update of how the third quarter earnings season is
shaping up (all data is as of the end of reports on Tuesday,
• Total earnings for the 53 S&P 500 companies
that have already reported results are up 6.9% from the same period
last year, with 60.4% of the companies beating expectations with a
median surprise of 2.4%.
• Total revenues for these same companies are
up 5.6%, but only 37.5% of the companies have come ahead of revenue
• The earnings growth rate for these companies
is better than what these same companies in the second quarter -
total earnings for these 53 companies were down 2.1% in the second
• The early reports are predominantly weighted
towards the large banks in the Finance sector, such as
). And earnings growth rates for the banks were all along expected
be the best in the index.
• Total earnings for the 12.7% of Finance
companies that have reported results are up 22.2% from the same
period last year. Please note that earnings from these 12.7% of
Finance companies account for almost 40% of all third quarter
earnings from the Finance sector.
• Excluding Finance, total earnings for the
companies that have already reported results will be down 1.3% from
the same period last year.
Wednesday will be a busy reporting day as well, with more than 60
companies reporting results. The list includes 23 S&P 500
The table below provides a summary of the companies still to report
results in the coming days. Total earnings for these 447 companies,
or 89.4% of the S&P members, are expected to be down 4.9% from
the same period last year. Excluding Finance, total earnings are
expected to be down 7.3%.
Each quarter, we see a majority of companies easily beat
expectations on the earnings front. And the third quarter earnings
season appears to be on track to be not much different from the
norm on that count either, though it is running a shade lower
relative to the last few quarters.
AMER EXPRESS CO (AXP): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
CSX CORP (CSX): Free Stock Analysis Report
EBAY INC (EBAY): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
MATTEL INC (MAT): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis
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