EC A Positive & Reassuring Earnings Picture In Q1

Comparing Q1 Results

The chart below provide a comparison of the growth performance thus far with what we have seen from this same group of 412 S&P 500 members in other recent periods.

As you can see, the Q1 growth pace is notably tracking above what we had seen from the same group of 412 index members in other recent periods. Importantly, the growth performance is broad-based and not narrowly concentrated. We got the leadership from the Finance space earlier in the reporting cycle, but the baton has since shifted to Tech and host of other areas, including Industrials, Basic Materials, and Energy.

Positive Revenue Surprises

The chart below compares the proportion of positive EPS and revenue surprises in Q1 thus far with what we had seen from the same group of 412 index members in other recent periods.

The proportion of Q1 companies beating EPS estimates is tracking above historical periods, with positive revenue surprises particularly coming out ahead of what we are used to seeing in the recent past. You can see the same in the chart below that compares the proportion of Q1 companies beating both EPS and revenue estimates with other recent periods.

Technology Sector Scorecard

For the Technology sector, we have Q1 results from 44 of the sector’s 62 operators in the S&P 500 index. Total earnings for these 44 Tech sector companies (accounting for 85.9% of the sector’s total market cap in the index) are up +16.5% from the same period last year on +6.4% higher revenues, with 77.3% beating EPS estimates and 79.5% beating revenue estimates.

The comparison charts below show how the sector’s Q1 results thus far compare with what we have been seeing from the same group of Tech companies in other recent periods.

 

As you can see, the sector’s growth performance is notably tracking above other recent periods, though the proportion of positive surprises is about in-line with recent history.

Expectations for Q1 As a Whole

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Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. In addition to this Earnings Preview ...

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