The Q4 2013 estimated earnings growth rate for the S&P 500 (INDEXSP:.INX) is pegged at 6.3% by FactSet.
The financial information systems provider however believes the estimated earnings growth is less than the 9.6% projected on September 30.
Financials to exhibit highest earnings growth
John Butters, Senior Earnings Analyst at FactSet believes the financial sector is projected to have the highest earnings growth rate for Q4 2013, while the energy sector is projected to have the lowest earnings growth rate for the quarter.
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As can be deduced from the following graph, the financials sector is set to grow at 24.2% followed by industrial sectors at 14.1%.
Interestingly, on September 30, the earnings growth rate for Q4 2013 was 9.6%.
As can be seen from the above graph, all ten sectors have recorded a decrease in earnings growth rates over this time frame, led by the energy sector.
Information technology to post highest revenue growth
Turning focus towards revenue, FactSet analyst points out that information technology is projected to have the highest revenue growth followed by healthcare. This is evident from the following graph:
John Butters of FactSet points out that of the 19 companies that have reported earnings to date for Q4 2013, 63% have reported earnings above the mean estimate and 58% have reported sales above the mean estimate.
S&P 500 EPS guidance
FactSet analyst notes for Q4 2013, 94 companies have issued negative EPS guidance, while 13 companies have issued positive EPS guidance. The following graph reveals both the negative and positive EPS guidance issued by various industries:
The analyst points out that the current 12-month forward P/E ratio is 15.4, based on Thursday’s closing price of 1842.02.
The following table highlights sector-level forward 12-month P/E ratios:
As can be seen from the following graph, the forward 12-month EPS estimate is pegged at $119.66.
The following graph highlights sector-level forward 12-month P/E ratios: