{"id":7175,"date":"2017-09-16T13:24:32","date_gmt":"2017-09-16T13:24:32","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7175"},"modified":"2017-09-16T13:24:32","modified_gmt":"2017-09-16T13:24:32","slug":"how-do-3rd-quarter-estimates-look","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7175","title":{"rendered":"How do 3rd Quarter Estimates Look ?"},"content":{"rendered":"<p>Thomson Reuters data (by the numbers):<\/p>\n<ul>\n<li><em><strong>Fwd 4-qtr est:<\/strong><\/em> $137.83 vs last week&#8217;s $138.05<\/li>\n<li><em><strong>P.E ratio:<\/strong><\/em> 18x<\/li>\n<li><em><strong>PEG ratio:<\/strong><\/em> 1.88x<\/li>\n<li><em><strong>SP 500 earnings yield:<\/strong><\/em> 5.51%<\/li>\n<li><em><strong>Year-over-year growth of the fwd estimate:<\/strong><\/em> +9.63% vs last week&#8217;s +9.69%<\/li>\n<\/ul>\n<p>Source: Thomson Reuter&#8217;s &#8220;This Week in Earnings&#8221; dated 9\/15\/17<\/p>\n<p><em><strong>Quick look at Q3 &#8217;17 earnings estimates by\u00a0sector:\u00a0<\/strong><\/em><\/p>\n<ul>\n<li>Energy: +134.8%<\/li>\n<li>Technology: +9.5%<\/li>\n<li>Industrial&#8217;s: +6.0 (guess someone forgot to tell GE)<\/li>\n<li>SP 500: +6%<\/li>\n<li>Health Care: +3.7%<\/li>\n<li>Financials: +3.6% (trading losses in Q3 pulled numbers way down, Citi, Goldman talked about Q3 trading results this week)<\/li>\n<li>Real Estate: +3.4%<\/li>\n<li>Cons Spls: +2.7%<\/li>\n<li>Basic Mat: +0.6%<\/li>\n<li>Cons Disc: -0.1%<\/li>\n<li>Telco: -1.1%<\/li>\n<li>Utilities: -2%<\/li>\n<\/ul>\n<p>The only sector to show upward revisions to expected growth rates for Q3 &#8217;17 is Technology. Industrial&#8217;s estimates have held in well. Telco is slightly higher from the July 1 compare, but Telco is just less negative, and not positive.<\/p>\n<p>I&#8217;m a believer that the SP 500 discounts earnings 6 &#8211; 9 months forward, so the 3rd quarter is already &#8220;in&#8221; the market, but readers can see the numbers for themselves.<\/p>\n<p>Apple is still very much a big influence on the Tech sector and the SP 500 given its 4% market cap weight in the SP 500. As we <a href=\"https:\/\/fundamentalis.com\/?p=7171\">wrote yesterday<\/a>, the iPhone 8 release looks fine and the estimates revisions continue higher.<\/p>\n<p>Our Financial&#8217;s post last Saturday, 9\/9 was timely. The Financial sector had a good week this week, with the XLF +2.8% versus the SP 500&#8217;s +1.6%. \u00a0Client&#8217;s largest financial holding is Schwab (SCHW) and the stock was up 4% on the week.<\/p>\n<p>Clients remain overweight Financial&#8217;s although that can change at any time, as well as the composition of the overweight. I continue to think the Financial sector offers more reward than risk, over the longer term.<\/p>\n<p>Thanks for reading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thomson Reuters data (by the numbers): Fwd 4-qtr est: $137.83 vs last week&#8217;s $138.05 P.E ratio: 18x PEG ratio: 1.88x&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[90,84,53,91],"tags":[],"class_list":["post-7175","post","type-post","status-publish","format-standard","hentry","category-apple-aapl","category-financial-sector","category-financials","category-weekly-earnings-update"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7175"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7175\/revisions"}],"predecessor-version":[{"id":7179,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7175\/revisions\/7179"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}