Early second quarter EPS results have been better than headlines make them out to be writes UBS strategist Jonathan Golub in his latest note.
9 of 13 companies who have already reported Q2 results have had positive surprises on EPS. Overall companies have had an aggregate beat of 1.8 percent. Revenue however has come pretty much in line with expectations.
On the back of weak economic data inn the U.S. and European macro concerns, consensus EPS estimates have declined 2.6 percent since March 31.
"This decline is similar to that experienced in the past few quarters," according to Golub. "Notably, results have come in ahead of expectations in each of these past earnings seasons and have not disappointed since the start of the recovery."
Here's a chart from UBS that shows the positive and negative EPS surprises from S&P500's early earnings reports:
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