S&P 500 Companies See Negative Price Reaction to Positive EPS Surprises in Q4

Overall, 83% of the companies in the S&P 500 have reported actual results for Q4 2020 to date. Of these companies, 79% have reported actual EPS above estimates, which is above the five-year average of 74%. If 79% is the final percentage for the quarter, it will mark the third-highest percentage of S&P 500 companies reporting a positive EPS surprise since FactSet began tracking this metric in 2008. In aggregate, companies are reporting earnings that are 14.6% above the estimates, which is also above the five-year average of 6.3%. If 14.6% is the final percentage for the quarter, it will mark the fourth-largest earnings surprise percentage reported by the index since FactSet began tracking this metric in 2008. Due to these positive EPS surprises, the index is now reporting year-over-year growth in earnings of 3.2% today compared to an estimated year-over-year decline in earnings of -9.3% back on December 31.