See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
JPMorgan Chase & Co. (JPM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JPMorgan Chase & Co. (JPM) - free report >>
Image: Bigstock
Taking Stock of the Earnings Picture After the Early Releases
The early Q3 earnings reports paint a relatively stable and reassuring picture of overall economy and particularly of consumer spending. We see this not only in the earnings reports from banks like JPMorgan (JPM - Free Report) and others, but also from consumer-facing operators like Pepsi (PEP - Free Report) , Delta Airlines (DAL - Free Report) and others.
In fact, the resilience of the U.S. economy has come as a pleasant surprise to the market, particularly given how well it has held up in the face of the Fed’s extraordinary tightening cycle.
We continue to believe that the U.S. economy’s solid fundamentals will allow it optimally navigate the coming period of ‘higher-for-longer’ interest rates. This constructive view of the economy is getting confirmed by trends in earnings estimate revisions, which continue to remain stable and appear to be starting to increase for a number of key sectors.
In terms of the Q3 earnings season scorecard, we now have results from 78 S&P 500 members or 15.6% of the index’s total membership. Total earnings for these 78 index members are up +1.6% from the same period last year on +5.7% higher revenues, with 80.8% beating EPS estimates and 62.8% beating revenue estimates.
This is a modestly better showing for this group companies relative to other recent periods, which is a notable positive given how Q3 estimates had barely budged ahead of the start of this reporting cycle.
For more details about the Q3 earnings season and the evolving revisions picture, please check out our weekly Earnings Trends report here >>>>> The Q3 Earnings Season Kicks Off Positively