S&P 500 Q2 Earnings Season Update: July 28

To date, 57% of the companies in the S&P 500 have reported actual results for Q2 2017. In terms of earnings, more companies (73%) are reporting actual EPS above estimates compared to the five-year average. In aggregate, companies are reporting earnings that are 6.4% above the estimates, which is also above the five-year average. In terms of sales, more companies (73%) are reporting actual sales above estimates compared to the five-year average. In aggregate, companies are reporting sales that are 1.2% above estimates, which is also above the five-year average.

The blended (combines actual results for companies that have reported and estimated results for companies that have yet to report) earnings growth rate for the second quarter is 9.1% today, which is higher than the earnings growth rate of 7.1% last week. Upside earnings surprises reported by companies in multiple sectors (including Health Care and Information Technology) were mainly responsible for the increase in the earnings growth rate for the index during the past week. Overall, 10 sectors are reporting year-over-year earnings growth, led by the Energy, Information Technology, and Financials sectors. The only sector reporting a year-over-year decline in earnings is the Consumer Discretionary sector.

The blended sales growth rate for the second quarter is 5.2% today, which is above the sales growth rate of 4.8% last week. During the past week, upside sales surprises reported by companies in the multiple sectors (including Energy, Health Care, Industrials, and Information Technology) were mainly responsible for the increase in the revenue growth rate for the index during the past week.

Overall, 10 sectors are reporting year-over-year growth in revenues, led by the Energy sector. The only sector reporting a year-over-year decline in revenues is the Telecom Services sector.

During the upcoming week, 133 S&P 500 companies (including two Dow 30 components) are scheduled to report results for the second quarter.

For Q3 2017, 28 S&P 500 companies have issued negative EPS guidance and 26 S&P 500 companies have issued positive EPS guidance.

The forward 12-month P/E ratio is 17.7, which is above the five-year average and the ten-year average.