So far in this earnings season, with over half of companies having reported, the energy sector has experienced the biggest earnings surprise. Earnings have come in almost 23% ahead of analyst estimates, nearly double the surprise of the consumer discretionary sector.
Digging into industry groups, with 6 out of 7 companies in the S&P 500 having reported so far, the Energy Equipment and Services industry has experienced an almost 40% earnings surprise factor.
Stone House Capital Partners returned 4.1% for September, bringing its year-to-date return to 72% net. The S&P 500 is up 14.3% for the first nine months of the year. Q3 2021 hedge fund letters, conferences and more Stone House follows a value-based, long-long term and concentrated investment approach focusing on companies rather than the market Read More
In reviewing the components of the industry, 5 out 6 companies reported earnings surprises, with Baker Hughes trouncing estimates by 81%.
Among constituents of the Oil, Gas and Consumable Fuels industry, 9 out of 10 companies reported positive earnings surprises.
Chevron was a particularly high profile earnings beat. Cash flow after dividends is back in the black, rising to $900M.
Compared to a year ago, where the company lost $725M, first quarter earnings were $2.682B.