With Walmart’s (WMT) earnings report this week, the Q2 ’16 earnings season unofficially comes to an end.
Ex-Energy, (and per Factset), the SP 500 grew earnings in Q2 ’16 +0.4% and grew revenue +2.5%.
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Thomson Reuters data (by the numbers):
Forward 4-quarter estimate: $125.88 versus $126.12 last week.
P.E ratio: 17(x)
PEG ratio: 11.83(x)
SP 500 earnings yield: 5.76%. The SP 500 hasn’t been above a 6% earnings yield since June 24th.
Year-over-year growth of the forward estimate: +1.47% versus last week’s +1.48% and still disappointingly subdued.
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If you are overweight Tech and Apple for Q2 ’16 earnings, your portfolio saw a nice bounce in July. Financials, the other large market cap weighting in the SP 500, continues to trade like it has a piano on its back.
For 9 months now, my own expectation for earnings growth is that the ‘forward 4-quarter growth rate” would gradually start to rise, and for 9 months that expectation been wrong, even though the SP 500 has broken out to new all-time-highs.
Talk about being right for the wrong reasons.
Today is a short earnings summary since there is other work to be done. Look for another blog post tomorrow and probably Monday.
Have a good weekend.