{"id":11321,"date":"2021-02-26T16:06:12","date_gmt":"2021-02-26T22:06:12","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=11321"},"modified":"2021-02-26T16:06:12","modified_gmt":"2021-02-26T22:06:12","slug":"sp-500-weekly-earnings-update-growth-is-good-sp-500-eps-revisions-still-higher","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=11321","title":{"rendered":"SP 500 Weekly Earnings Update: “Growth is Good” – SP 500 EPS Revisions Still Higher"},"content":{"rendered":"

This week will be started off with a link from Factset, John Butter and his crew, as this link<\/a> from Factset sent to readers this Friday, February 26th, 2021, that Q1 ’21 SP 500 estimates have started out with their 2nd highest increase since 2002.<\/p>\n

Readers were given a jump on this with last week’s blog post<\/a> when I write about the upward revisions to Q1 ’21 and also linked Q2 ’21.<\/p>\n

In the ever-present tussle between the market’s valuation and SP 500 earnings, pay attention to the market for sure. Jeff Miller over at A Dash of Insight had some interesting and very prescient thoughts<\/a> on the market last week. Jeff occasionally picks up this blog, for which I am very grateful, but on it’s own, “A Dash” was voted one of the Top 10 financial blogs in America several years ago. Jeff packs a lot of info in every week. Become a regular reader and your portfolio will benefit.<\/p>\n

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Michael Santoli reported last week on CNBC that earnings momentum was slowing, but that could be a function of the fact that as today, 479 SP 500 companies have reported their Q4 ’20 results. In March, ’21 investors get a handful of critical reports from the likes of Costco, (COST) FedEx (FDX), Accenture (ACN), Micron Technology (MU), Oracle (ORCL), etc. and a host of other retail, which will give us a good look at a wide swath of the economy through the end of February, ’21. As of last Friday, February 18th, 2021, 399 companies had reported Q4 ’20 results, or roughly 80% of the SP 500.<\/p>\n

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Source: IBES data by Refiniv, dated 2\/26\/21.<\/p>\n

As a check on the hard EPS data that will be shown shortly the above table is an internal spreadsheet of the weekly SP 500 EPS “revision” data from Refinitiv. Each highlighted block is the earnings season, with the top block being the heart of Q4 ’20 earnings season and each successive block being Q3 ’20 and then Q2 ’20.<\/p>\n

A mix of 70% positive \/ 30% negative revisions for the SP 500 is still very healthy.<\/p>\n

SP 500 EPS data – looking at the numbers:\u00a0<\/strong><\/em><\/p>\n