Third Quarter Earnings Season Winds Down

The third quarter earnings season for companies in the S&P 500 officially comes to an end over the next week. The final six companies in the index will report throughout this week and next Monday. This week, we get results from Brown-Forman (BF-B), Avago Technologies (AVGO) and PVH Corp on Wednesday, Kroger (KR) and Dollar General (DG) on Thursday, and lastly H&R Block reports on Monday, December 8. Just as soon as the third quarter reporting season ends, Autozone (AZO) will be the first company to release it’s fourth quarter results next Tuesday.

How Are We Doing?

Expectations for S&P 500 earnings growth for the third quarter stand at 11.6%. Revenues are anticipated to come in with 4.8% growth. All 10 sectors are anticipated to post positive YoY growth on both the earnings and revenue front.

Leaders

Earnings:

Energy (14.3%). Notable industry: Oil, Gas and Consumable Fuels (14.8%)

Health Care (13.9%). Notable industry: Biotechnology (45.1%)

Consumer Discretionary (13.3%). Notable industry: Internet Retailers (25.3%)

Revenues:

Health Care (12.2%). Notable industry: Biotech (39.0%).

Information Technology (7.0%). Notable industry: Software (15.8%)

Laggards

Earnings:

Utilities (2.6%). Notable industry: Gas Utilities (-8.3%).

Telecommunication Services (1.4%): All five companies are within Diversified Telecom Services. Only Verizon posted yoy growth.

Revenues:

Energy (1.1%). Notable industry: Oil, Gas and Consumable Fuels (0.4%).

Materials (2.4%). Notable industry: Paper & Forest Products (-18.3%).

Beat/Miss/Match

Earnings: With 99% of the S&P 500 reporting thus far, 56% have beaten the Estimize consensus, 34% have missed and 10% have met. This is compared to Wall Street estimates, of which 72% of companies have beat on the bottom-line, 20% have missed and 8% have met.

Revenue: 53% have beaten the Estimize consensus, 47% have missed, and 0% have met. For revenues, 60% of companies have beat the Wall Street estimate, while 40% have missed.