Pathlight President, Adrian Larson, discuses the continued earnings momentum as the 2Q18 reporting season for S&P 500 companies comes to a close.
Earnings are in, and growth is continuing
As of August 10th, 454 of the 500 S&P 500 companies have reported their second quarter 2018 earnings and the results have continued to show momentum. According to Thomson Reuters, 79% of companies have beaten EPS estimates, and 71% have beaten revenue estimates, both metrics well above historical averages.
Posted growth figures are impressive, with earnings growing roughly 24% year-over-year and reported revenues growing at 9.3% versus 2Q2017.
See the full earnings scorecard at http://lipperalpha.financial.thomsonreuters.com/2018/08/sp-500-17q1-earnings-dashboard/
Recent market weakness is based on non-earnings related issues
We just can’t seem to have an earnings season that doesn’t get tainted with some other new story and this time is no different. We’ve had a few high profile earnings misses, Facebook (FB) and Netflix (NFLX), and we are also now dealing with risks associated with the Turkish currency, the Lira.
But these headline issues are a distraction from the strength U.S. companies are reporting, and we believe you should do your best to tune out the noise around these stories. Let the data guide you in your investment decisions. In this case, the data are strong.
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