Investor Discussions - Q2 2016 Earnings Update
Wealth & Pension Services Group
William Kring, CFP, AIF - Chief Investment Officer
Matt B. Bailey, CFA, CMT - Senior Portfolio Manager
Q2 Earnings Update - A Harbinger for the Year?
As of Monday, roughly 21% of S&P 500 companies have reported their Q2 2016 financials. Within the reports, 84% beat their EPS (earnings per share) estimates and they did so by around 7% on average. Sales were also strong, as 61% outpaced their estimated revenue targets by an average of 2%. Both of these figures are above expectations and should be positive news for the stock market.
The chart below illustrates that so far it has been one of the strongest quarters since 2009. Digging a little deeper, sectors including Industrials, Consumer Discretionary, and Healthcare have all experience strong year-over-year EPS and sales growth.
It’s still early but the preliminary data is positive and suggests that Q2 could shape up to be a great quarter for U.S. companies. We’ll keep you posted as more companies release their results.
As always, please feel free to contact us with any questions you may have.
William Kring, CFP®, AIF®
Chief Investment Officer
Matt B. Bailey, CFA®, CMT®
Senior Portfolio Manager
Source: JP Morgan