Featured Image

Both Bricks and Clicks S&P 500 Retailers Reporting Double-Digit Earnings Growth for Q1

Companies and Earnings

By John Butters  |  May 14, 2018

Since the start of the year (December 31), the S&P 500 Retailing industry group has recorded an 18.4% increase in price, compared to a 1.8% increase for the S&P 500 as a whole. The next few weeks will be focus weeks for retail earnings for the S&P 500, as 17 of the 46 remaining companies in the index that have yet to report actual results for the first quarter are retailers. As of today, which retailers in the S&P 500 are reporting (or are expected to report) the highest and lowest year-over-year earnings growth for the first quarter? Which retailers in the index have seen the largest changes to earnings numbers for Q1 since March 31?

In terms of year-over-year earnings growth, all 13 retail sub-industries in the S&P 500 are reporting (or are expected to report) earnings growth for the first quarter. Ten of these 13 retail sub-industries are reporting (or are expected to report) double-digit earnings growth, led by the Internet & Direct Marketing Retail (72%) sub-industry. However, excluding the Internet & Direct Marketing Retail sub-industry, the remaining 12 retail sub-industries in the S&P 500 are reporting (aggregate) earnings growth of 14.0%. Thus, both “bricks” and “clicks” retailers are reporting double-digit earnings growth for the first quarter.

Q1 Retail Earnings GrowthIn terms of upward changes to earnings, seven sub-industries have recorded an increase in earnings growth since March 31, led by the Internet & Direct Marketing Retail (to 72.2% from -3.0%) and Food Distributors (to 29.5% from 23.5%) sub-industries. In the Internet & Direct Marketing Retail sub-industry, the positive EPS surprise reported by Amazon.com ($3.27 vs. $1.24) was the largest contributor to the increase in earnings growth for this sub-industry during this period. In the Food Distributors sub-industry, the positive EPS surprise reported by Sysco ($0.67 vs. $0.63) was the largest contributor to the increase in earnings growth for this sub-industry over this period.

In terms of downward changes to earnings, five sub-industries have recorded a decrease in earnings growth since March 31, led by the Distributors (to 14.6% from 20.9%) and Automotive Retail sub-industries. In the Distributors sub-industry, the negative EPS surprises reported by both Genuine Parts Company ($1.27 vs. $1.32) and LKQ Corporation ($0.55 vs. $0.59) caused the decrease in earnings growth for this sub-industry over this period. In the Automotive Retail sub-industry, the negative EPS surprise reported by CarMax ($0.67 vs. $0.87) was the largest contributor to the decrease in earnings growth reported by this sub-industry during this period.

Download the latest Earnings Insight

John Butters

Senior Earnings Analyst

John’s weekly research report, Earnings Insight provides analysis and commentary on trends in corporate earnings data for the S&P 500, including revisions to estimates, year-over-year growth, performance relative to expectations, and valuations. He is a widely used source for the media and has appeared on CNBC, Fox Business News, and the Business News Network. In addition, he has been cited by numerous print and online publications such as The Wall Street Journal, Financial Times, The New York Times, MarketWatch, and Yahoo! Finance.

Comments

Info

We use cookies to personalize content and ads and to analyze our traffic.

We also share information about your use of our site with our advertising and analytics partners. See details.