Investors and analysts alike weren’t too excited going into this earnings season. The expectation was for no growth in earnings.
However, things have been going much better than expected.
Of the 106 S&P 500 companies that have announced Q1 earnings, a whopping 83 per cent have beaten analysts’ estimates. This is the highest beat rate in three years. This is according to data compiled by FactSet.
On average, companies are beating expectations by 6.3 per cent, which is above the 5.1 per cent average in the last four quarters.
The best part: analysts are now expecting earnings growth of 2.2 per cent! It doesn’t sound like much, but it’s better than nothing.
Here’s a sector-by-sector break down of beat rates so far.
And here’s an updated break down of earnings growth expectations by sector.
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