After disappointing results from many of the banks, with estimates for those that have yet to report continually dropping, and volatile oil prices causing downward revisions in the energy sector, S&P 500 expected growth has dropped significantly to 6.0%, from 8.0% earlier in the week.
Worse-than-expected results from the likes of JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C), and subsequent revisions to Goldman Sachs [(NYSE:GS) (reporting tomorrow)] and to a lesser degree Morgan Stanley [(NYSE:MS) (reporting Tuesday)] have caused the expected growth rate for financials to plunge. At the beginning of the season, estimated EPS growth for financials was around the 5% mark, the sector is now anticipated to post a decline of 2.4%. The main culprit is the banking industry, now pegged to come in at -5.0%, down from 3.0% earlier the quarter.
The energy sector has also fallen dramatically. At the start of the year profit growth was expected to come in at -10%, that number has since been revised downward to -17.5%.
After a day marked with dismal earnings and unfortunate economic data from the Philly Fed and jobless claims, we’re hoping for this afternoon’s Intel (NASDAQ:INTC) report to be a bit of a bright spot. The semiconductor company is expected to post EPS of $0.67, which would denote a 31% increase YoY, and revenues of $14.7B suggesting growth of 6.6%.
How are we doing?
Expectations for S&P 500 earnings growth for the fourth quarter stand at 6.0%. Revenues are anticipated to come in with 1.4% growth.
Health Care (22.1%). Notable industry: Biotechnology (60.2%)
Telecommunication Services (19.7%)
Information Technology (11.5%). Notable industry: Semiconductors (29.6%)
Health Care (7.9%). Notable industry: Biotech (37.3%)
Information Technology (7.5%). Notable industry: Semiconductors (15.0%)
Energy (-17.5%). Notable industry: Oil, Gas and Consumable Fuels (-19.0%)
Materials (-2.8%). Notable industry: Metals & Mining (-6.7%)
Financials (-2.4%). Notable industry: Banks (-5.0%)
Energy (-13.1%). Notable industry: Oil, Gas and Consumable Fuels (-15.4%).
Materials (-1.1%). Notable industry: Paper & Forest Products (-17.9%).
Earnings: With 30 S&P 500 companies reporting thus far, 52% have beaten the Estimize consensus, 35% have missed and 13% have met. This is compared to Wall Street estimates, of which 67% of companies have beat on the bottom-line, 17% have missed and 16% have met.
Revenue: 57% have beaten the Estimize consensus, while 43% have missed. For revenues, 63% of companies have beat the Wall Street estimate, while 37% have missed.