© Reuters. Reporting season a ‘combined bag’ up to now – RBC Capital
Reporting season continues to appear like a combined bag, analysts at RBC Capital mentioned in a shopper observe Monday.
They acknowledged that with greater than half of the nonetheless not but in, these stats stay very a lot in flux, however mentioned the % of corporations within the index beating consensus on EPS forecasts continues to be monitoring slightly decrease than final quarter.
In addition, each EPS beats and income beats are monitoring decrease for the . “Within the Russell 1000, the companies posting earnings beats are outperforming the broader market slightly immediately post results in terms of their stock price reactions, but to a lesser degree than we saw last quarter,” the analysts added. “The good news is that companies missing consensus EPS forecasts also aren’t underperforming as much as usual.”
Furthermore, whereas small-cap corporations posting earnings beats have been in-line performers, RBC Capital notes that the excellent news is corporations lacking consensus EPS forecasts are underperforming to a lesser diploma than normal.
“2023’s S&P 500 EPS (a blend of actuals and estimates for outstanding companies) is now tracking at $223 (flat vs. 2022’s actual and up from the 2023 forecast of $221 to start the year),” the analysts mentioned. “Meanwhile, 2024’s S&P 500 EPS forecast is now tracking at $243 – down from the forecast of $245 a few weeks ago.”
The anticipated development charge for 2024 EPS is now monitoring at simply 9% vs. 11% just a few weeks in the past. RBC has been anticipating some downward revisions to 2024’s bottom-up consensus EPS forecasts.