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Positive Start to Q1 Earnings Season

Sheraz Mian

We are off to a good start in the Q1 earnings season, with earnings and revenue growth and positive surprises tracking above what we have been seeing in other recent periods. That said, it is still relatively early going in the reporting cycle, with the results thus far weighted more towards the Finance sector. By the end of this week, we will have a more representative sample of results to draw firm conclusions from.

Including all of today’s results, we now have Q1 results from 31 S&P 500 members. Total earnings for these 31 index members are up +10.2% from the same period last year on +4.2% higher revenues, with 77.4% beating EPS estimates and 54.8% beating revenue expectations.

For Q1 as a whole, combining the actual results from the 31 index members that have reported results with estimates for the still-to-come 469 companies, total earnings are expected to be up +7.6% from the same period last year on +6.2% higher revenues. This would follow the +7.4% earnings growth in 2016 Q4 on +4.8% growth in total revenues.

For the Finance sector, we now have Q1 results 22.1% of the sector’s total market capitalization in the S&P 500 index. Total earnings for these Finance sector companies that have reported results, which includes the major banks like JPMorgan (JPM), Citigroup (C ) and Wells Fargo (WFC) are up +10.8%  from the same period last year on +3.1% higher revenues, with 100% of the sector companies beating EPS estimates and 60% beating revenue estimates.

For more details about the Q1 earnings season and the Finance sector’s results thus far, check out our weekly Earnings Preview report.

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