The key earnings metrics for the week of February 20, 2017:
- Earnings Scorecard: As of today (with 92% of the companies in the S&P 500 reporting actual results for Q4 2016), 66% of S&P 500 companies have beat the mean EPS estimate and 52% of S&P 500 companies have beat the mean sales estimate.
- Earnings Growth: For Q4 2016, the blended earnings growth rate for the S&P 500 is 4.9%. The fourth quarter will mark the first time the index has seen year-over-year growth in earnings for two consecutive quarters since Q4 2014 and Q1 2015.
- Earnings Revisions: On December 31, 2016, the estimated earnings growth rate for Q4 2016 was 3.1%. Eight of the 11 sectors have higher growth rates today (compared to December 31) due to upside earnings surprises and upward revisions to earnings estimates, led by the Real Estate sector.
- Earnings Guidance: For Q1 2017, 67 S&P 500 companies have issued negative EPS guidance and 31 S&P 500 companies have issued positive EPS guidance.
- Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.7. This P/E ratio is based on Thursday’s closing price (2363.81) and forward 12-month EPS estimate ($133.73).