Fra Factset:
Q4 2015 Earnings Season: By the Numbers Overview With 15% of the companies in the S&P 500 reporting actual results for Q4 to date, more companies are reporting actual EPS above estimates (73%) compared to the 5-year average, while fewer companies are reporting sales above estimates (49%) relative to the 5-year average.
In aggregate, companies are reporting earnings that 2.6% above the estimates. The blended (combines actual results for companies that have reported and estimated results for companies yet to report) earnings decline for Q4 2015 is now -6.0%. At the sector level, the Energy and Materials sectors are reporting the largest year over-year decreases in earnings of all ten sectors, while the Telecom Services sector is reporting the highest earnings growth for the quarter.
The blended revenue decline for Q4 2015 is now -3.5%. At the sector level, the Energy and Materials sectors are reporting the largest year-over-year decreases in sales of all ten sectors. On the other hand, the Telecom Services and Health Care sectors are reporting the highest growth in sales for the quarter. During the Q4 earnings season, the market will likely be watching for comments from companies regarding the impact on earnings and revenues of lower oil and gas prices, the stronger U.S. dollar, and slower global economic growth.
Looking at future quarters, analysts do not currently project revenue growth to return until Q1 2016 and earnings growth to return until Q2 2016. Analysts also expect net profit margins for Q4 2015 to be below the levels reported for Q3 2015 and Q2 2015 (based on per-share estimates). The forward 12-month P/E ratio is now 14.9, which is still above the 5-year and 10-year averages.
During the upcoming week, 136 S&P 500 companies (including 12 DJIA components) are scheduled to report results for the fourth quarter.
