With Earnings Season Coming to a Close; What’s the Grade?

With about 80% of companies in the S&P 500 reporting this quarter, we thought it a good time to review the results.

According to Thompson Reuters,  about 80% of companies have beat their 90 day treadmill number/quarterly earnings, with the remaining companies missing.

Care to guess which Sector of companies did the best or the worst thus far?

(Here’s a quick list of the Sectors: Consumer Discretionary, Consumer Staples, Energy, Finanicals, Health Care, Industrials, Info Technology, Materials, Telecom, Utilities) 

The Sector/area of the economy that had the best performance compared to their respective analyst were Finanicals. With the volatility over the latest two years, it might not come as a surprise.

Care to guess which had the worst?

Telecom led the laggards with the worst performance against their respective analyst estimates. One caveat on this sector, it is a small percentage of the S&P 500 and therefore a few companies can greatly affect the averages.

All in all, we give this earnings season a good grade, and look towards the eventually increase in headcount by companies, and therefore lowering of the unemployment rate in the US.

Have a Good Day!

JK