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.
Zacks Earnings Trends Highlights: Wells Fargo and JPMorgan
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 26, 2018 – Zacks Director of Research Sheraz Mian says, "Total Q1 earnings for the S&P 500 index are expected to be up +15.9% from the same period last year on +7.3% higher revenues."
Handicapping Q1 Earnings Season
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
• Total Q1 earnings for the S&P 500 index are expected to be up +15.9% from the same period last year on +7.3% higher revenues. This would follow +13.5% earnings growth on +8.5% revenue growth in the preceding period.
• Earnings growth is expected to be in double-digit territory from the year-earlier level for 11 of the 16 Zacks sectors, including the Technology and Finance sectors. Only two sectors (Autos & Conglomerates) are expected to show earnings declines in Q1.
• Energy sector earnings are expected to be up +60.8% from the same period last year on +15.7% higher revenues. Excluding the Energy sector, total S&P 500 earnings growth drops from +15.8% to +14.4%.
• The Q1 earnings season wouldn’t take the spotlight till the big banks come out with results in mid-April, but the reporting cycle has actually got underway already, with results from 13 S&P 500 members with fiscal quarters ending in February have reported results already.
• Earnings estimates for Q1 and the following quarters have gone up in a notable way, with tax law changes as the most notable reason for the positive revisions. The positive revisions are broad-based, with estimates for 13 of the 16 Zacks sectors going up.
• In percentage terms, estimates have gone up the most for the Basic Materials, Energy, Industrials and Aerospace sectors. In absolute terms, the positive revisions to the Finance and Technology sectors account for more than half of all estimate upgrades since the quarter got underway.
• This positive revisions trend is the most drastic change on the earnings scene in recent years and will be closely watched whether estimates for Q2 would follow a similar favorable trend as the Q1 earnings season unfolds.
• For the S&P 600 index, total Q1 earnings are expected to be up +13.8% from the same period last year on +7.2% higher revenues. This would follow +15.2% earnings growth on +6.8% revenue growth in the preceding quarter.
• For full-year 2018, total earnings for the S&P 500 index are track to be up +18% on +5.6% higher revenues, with full-year 2019 earnings and revenues for the index expected to be up +9.5% and +4.1%, respectively.
• The implied ‘EPS’ for the index, calculated using current 2018 P/E of 18.1X and index close, as of March 22nd, is $160. Using the same methodology, the index ‘EPS’ works out to $175.32 for 2019 (P/E of 15.1X). The multiples for 2018 and 2019 have been calculated using index’s total market cap and aggregate bottom-up earnings for each year.
We are still a few weeks away from big bank earnings results that now serve as the unofficial starting point of the reporting cycle since Alcoa relinquished that role following its split. Officially, however, the reporting cycle has gotten underway, with results from 13 S&P 500 members already out at this stage. All of these companies that have reported results already follow fiscal quarters that end in February. We will have Q1 results from almost two dozen S&P 500 members by the time JPMorgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) kick-off the earnings season on April 13th.
The most profound change on the earnings scene lately is the unusually positive revisions trend for Q1 and following quarters. The chart below shows how 2018 Q1 earnings growth expectations have evolved since mid-December 2017.
This is a sight that we haven’t seen in a very long time; definitely not in the last 6 years.
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Earnings Trends Highlights: Wells Fargo and JPMorgan
For Immediate Release
Chicago, IL – March 26, 2018 – Zacks Director of Research Sheraz Mian says, "Total Q1 earnings for the S&P 500 index are expected to be up +15.9% from the same period last year on +7.3% higher revenues."
Handicapping Q1 Earnings Season
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
• Total Q1 earnings for the S&P 500 index are expected to be up +15.9% from the same period last year on +7.3% higher revenues. This would follow +13.5% earnings growth on +8.5% revenue growth in the preceding period.
• Earnings growth is expected to be in double-digit territory from the year-earlier level for 11 of the 16 Zacks sectors, including the Technology and Finance sectors. Only two sectors (Autos & Conglomerates) are expected to show earnings declines in Q1.
• Energy sector earnings are expected to be up +60.8% from the same period last year on +15.7% higher revenues. Excluding the Energy sector, total S&P 500 earnings growth drops from +15.8% to +14.4%.
• The Q1 earnings season wouldn’t take the spotlight till the big banks come out with results in mid-April, but the reporting cycle has actually got underway already, with results from 13 S&P 500 members with fiscal quarters ending in February have reported results already.
• Earnings estimates for Q1 and the following quarters have gone up in a notable way, with tax law changes as the most notable reason for the positive revisions. The positive revisions are broad-based, with estimates for 13 of the 16 Zacks sectors going up.
• In percentage terms, estimates have gone up the most for the Basic Materials, Energy, Industrials and Aerospace sectors. In absolute terms, the positive revisions to the Finance and Technology sectors account for more than half of all estimate upgrades since the quarter got underway.
• This positive revisions trend is the most drastic change on the earnings scene in recent years and will be closely watched whether estimates for Q2 would follow a similar favorable trend as the Q1 earnings season unfolds.
• For the S&P 600 index, total Q1 earnings are expected to be up +13.8% from the same period last year on +7.2% higher revenues. This would follow +15.2% earnings growth on +6.8% revenue growth in the preceding quarter.
• For full-year 2018, total earnings for the S&P 500 index are track to be up +18% on +5.6% higher revenues, with full-year 2019 earnings and revenues for the index expected to be up +9.5% and +4.1%, respectively.
• The implied ‘EPS’ for the index, calculated using current 2018 P/E of 18.1X and index close, as of March 22nd, is $160. Using the same methodology, the index ‘EPS’ works out to $175.32 for 2019 (P/E of 15.1X). The multiples for 2018 and 2019 have been calculated using index’s total market cap and aggregate bottom-up earnings for each year.
We are still a few weeks away from big bank earnings results that now serve as the unofficial starting point of the reporting cycle since Alcoa relinquished that role following its split. Officially, however, the reporting cycle has gotten underway, with results from 13 S&P 500 members already out at this stage. All of these companies that have reported results already follow fiscal quarters that end in February. We will have Q1 results from almost two dozen S&P 500 members by the time JPMorgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) kick-off the earnings season on April 13th.
The most profound change on the earnings scene lately is the unusually positive revisions trend for Q1 and following quarters. The chart below shows how 2018 Q1 earnings growth expectations have evolved since mid-December 2017.
This is a sight that we haven’t seen in a very long time; definitely not in the last 6 years.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.