SP 500 Earnings Update: Q3 ’21 Results are Solid / 2022 Will Be Return to Average

With the Big 5 mega-cap tech names reporting his past week, the changes in the SP 500 estimates for 2021 and 2022 were nothing like the weekly changes we saw between July 23rd and July 30th, of this year, which was when the Big 5 all reported in one week in the 2nd quarter of 2021.

That being said, the change next week will tell us more since both Amazon and Apple reported on Thursday night, 10/28/21, after the closing bell, and the data cutoff for IBES data by Refinitiv is Thursday night, so the two giants and the subsequent EPS and revenue revisions might not be included in current estimates.

All that being said:

Note the increase in the “expected” EPS growth rate for Q3 ’21 and then the 60 bp increase in expected Q3 ’21 revenue growth.

Analysts – and probably for good reason now – despite the decent 3rd quarter results, are still reluctant to boost Q4 ’21 and 2022 numbers.

15% revenue growth and 38% EPS growth y.y (expected) is still a pretty good quarter for Q3 ’21.

2022 is looking far more “normal” right now in terms of historical EPS and revenue growth.

More to follow this weekend.

Thanks for reading.



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