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Small-Cap Earnings are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – August 23, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises.
Taking Stock of Small-Cap Earnings
Our overall take on the Q2 earnings season, which is now in its final phase, has consistently been very positive. The notable positives in the earnings story include broad-based growth, material momentum on the revenue side and continued positive revisions to estimates for the current period (2021 Q3).
Please note that when we are discussing corporate earnings in the aggregate, we are using the S&P 500 (SPY - Free Report) index as the handy proxy. The thinking behind this assumption is that the breadth and diversity of this large-cap index allows us to capture all business trends across all industries and sectors.
This is a fair assumption, but we should keep in mind that there are aspects of smaller and younger companies that are different from larger and more mature companies.
We provide plenty of coverage for what's happening with the large-cap earnings picture, the latest being this week's Earnings Trends report >>>> Strong Retail Sector Earnings
This note takes a look at the 2021 Q2 earnings season and the evolving earnings picture for the current and coming quarters for the small-cap S&P 600 (SPSM - Free Report) index to see if the aforementioned view makes sense.
Q2 Earnings Season Scorecard
For the S&P 600 index, we now have Q2 results from 561 companies or 93.3% of the index's total membership. Total earnings for these companies are up +205.5% from the same period last year on +35.2% higher revenues, with 69.3% beating EPS estimates and 80.7% beating revenue estimates. The proportion of these 561 S&P 600 members that have beaten both EPS and revenue estimates is 61.3%.
The comparison charts below put the Q2 performance in a historical context. For reference, we have also provided the corresponding comparisons for the large-cap S&P 500 index.
The EPS and revenue beats percentages for the S&P 600 index.
What we see from this comparison is that most small-cap companies beat estimates as well, but the percentages for the large-cap index are effectively in record territory, while the small-cap index figures are merely good.
This variance is even clearer when we compare the Q2 blended beats percentages, the proportion of these companies beating both EPS and revenue estimates, to other recent periods.
Looking at Q2 as a whole for the small-cap index, combining the actual results that have come out with estimates for the still-to-come companies, total S&P 600 earnings are on track to be up +250.5% on +32.8% higher revenues.
A big part of this year's growth is a result of easy comparisons to last year's Covid impacted results. But as you can see in the chart below, 2021 earnings are on track to be up +29% from the pre-Covid 2019 level.
For more details about the Q2 earnings season and the evolving picture for 2021 Q3 and beyond, please check out our weekly Earnings Trends report >>>Strong Retail Sector Earnings
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Small-Cap Earnings are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – August 23, 2021 – Zacks.com releases the list of companies likely to issue earnings surprises.
Taking Stock of Small-Cap Earnings
Our overall take on the Q2 earnings season, which is now in its final phase, has consistently been very positive. The notable positives in the earnings story include broad-based growth, material momentum on the revenue side and continued positive revisions to estimates for the current period (2021 Q3).
Please note that when we are discussing corporate earnings in the aggregate, we are using the S&P 500 (SPY - Free Report) index as the handy proxy. The thinking behind this assumption is that the breadth and diversity of this large-cap index allows us to capture all business trends across all industries and sectors.
This is a fair assumption, but we should keep in mind that there are aspects of smaller and younger companies that are different from larger and more mature companies.
We provide plenty of coverage for what's happening with the large-cap earnings picture, the latest being this week's Earnings Trends report >>>> Strong Retail Sector Earnings
This note takes a look at the 2021 Q2 earnings season and the evolving earnings picture for the current and coming quarters for the small-cap S&P 600 (SPSM - Free Report) index to see if the aforementioned view makes sense.
Q2 Earnings Season Scorecard
For the S&P 600 index, we now have Q2 results from 561 companies or 93.3% of the index's total membership. Total earnings for these companies are up +205.5% from the same period last year on +35.2% higher revenues, with 69.3% beating EPS estimates and 80.7% beating revenue estimates. The proportion of these 561 S&P 600 members that have beaten both EPS and revenue estimates is 61.3%.
The comparison charts below put the Q2 performance in a historical context. For reference, we have also provided the corresponding comparisons for the large-cap S&P 500 index.
The EPS and revenue beats percentages for the S&P 600 index.
What we see from this comparison is that most small-cap companies beat estimates as well, but the percentages for the large-cap index are effectively in record territory, while the small-cap index figures are merely good.
This variance is even clearer when we compare the Q2 blended beats percentages, the proportion of these companies beating both EPS and revenue estimates, to other recent periods.
Looking at Q2 as a whole for the small-cap index, combining the actual results that have come out with estimates for the still-to-come companies, total S&P 600 earnings are on track to be up +250.5% on +32.8% higher revenues.
A big part of this year's growth is a result of easy comparisons to last year's Covid impacted results. But as you can see in the chart below, 2021 earnings are on track to be up +29% from the pre-Covid 2019 level.
For more details about the Q2 earnings season and the evolving picture for 2021 Q3 and beyond, please check out our weekly Earnings Trends report >>>Strong Retail Sector Earnings
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.