Overall, 201 companies in the S&P 500 have reported earnings and revenues to date for the first quarter. On the earnings side, 73% of the companies have reported actual EPS above the mean EPS estimate and 27% of the companies have reported actual EPS below the mean EPS estimate. The percentage of companies reporting EPS above the mean EPS estimate is equal to the 5-year (73%) average.
However, on the revenue side, 47% of the companies have reported actual sales above the mean sales estimate and 53% of companies have reported actual sales below the mean sales estimate. The percentage of companies reporting sales above estimates is below the 5-year average (58%).
In fact, if 47% is the final percentage for the quarter, it will mark the lowest percentage of companies reporting sales above estimates since Q1 2013 (also 47%). Since Q3 2008, the percentage of companies reporting sales above estimates has finished below 50% only six times.
Due in part to more companies missing sales estimates than beating sales estimates, the blended sales decline is larger today (-3.5%) compared to the start of the quarter (-2.6%). On the other hand, due in part to more companies beating EPS estimates than missing EPS estimates, the blended earnings decline is smaller today (-2.8%) compared to the start of the quarter (-4.6%).
Week Ahead: Apple
Apple is scheduled to report earnings for the first quarter on April 27. The current mean EPS estimate for Q1 2014 is $2.15, compared to year-ago actual EPS of $1.66.
Apple is currently expected to be the largest positive contributor to year-over-earnings growth for the Information Technology sector for Q1 2015 and the second largest positive contributor (after Bank of America) to year-over-year earnings for the entire S&P 500. The blended (combines actual results for companies that have reported and estimated results for companies yet to report) for the Information Technology sector is 0.7%. Excluding Apple, the blended earnings growth rate for the sector would fall to -5.1%. The blended earnings decline for the entire S&P 500 is -2.8%. Excluding Apple, the blended earnings decline for the S&P 500 would increase to -3.9%.