S&P 500 Q2 2016 EPS & Growth Rate by Lindsey Bell, S&P Global Market Intelligence
S&P 500 Consensus Earnings Report
Q2 Earnings for S&P 500 In Early Stages
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
- Aggregate Q2 2016 S&P 500 earnings are estimated at $28.24, representing a decline of 5.2% year-over-year, for the fourth quarterly decline in a row.
- Walgreens Boots Alliance reported better than expected earnings as synergy goals were met with three months to spare. Retail sales lagged, but were offset by strength in the pharmacy business. Management raised it’s full year guidance by $0.10 at the low end to $4.45-$4.55.
- Only four of 10 S&P sectors are projected to have positive earnings growth for Q2, with consumer discretionary (9.6%), industrials (7.4%), utilities (3.3%), and healthcare (3.0%) leading.
- The energy sector (-80.8%) once again is expected to post the largest decline in growth, though the decline is an improvement from first quarter results.
- Other sectors with large declines in growth are financials (-8.0%), materials (-7.8%), and information technology (-5.3%).
- Excluding the energy sector drag, S&P 500 EPS growth would still decline 0.7% in Q2.
- The earnings beat rate in the first quarter is currently 55%, below the historic average of 66%, though only 22 companies have reported results thus far.
- From a valuation perspective, the S&P 500 is trading at 17.3x on a forward 12 month price-to-earnings ratio, a premium to the fifteen year average.
S&P Euro 350 CY 2016 & 2017 Earnings Expectations
- Analysts currently expect earnings growth for calendar year 2016 and 2017 to come in at -4.9% and 14.2%, respectively. Since last Wednesday, growth estimates improved by 10 bps for 2016 but contracted by 20 bps for 2017. These growth rates correspond to earnings per share of €86.49 and €98.77, respectively.
- Three of 10 sectors within the S&P Euro 350 are expecting earnings growth in 2016, with healthcare (2.6%) leading, followed by consumer discretionary (1.7%) and telecommunications (1.4%). Energy (-26.1%) and financials (-15.6%) are expected to have the largest contractions in growth.
See full PDF below.