{"id":7976,"date":"2018-08-04T12:38:08","date_gmt":"2018-08-04T12:38:08","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7976"},"modified":"2018-08-04T12:38:08","modified_gmt":"2018-08-04T12:38:08","slug":"sp-500-weekly-earnings-a-little-softening-in-tech-and-energy-growth-rates","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7976","title":{"rendered":"SP 500 Weekly Earnings: A Little Softening in Tech and Energy Growth Rates"},"content":{"rendered":"<p>It might be hardly worth mentioning but looking at the data every week, it&#8217;s important to distinguish sentiment from reality and for the Energy and Tech sectors there has been a little bit of softening in Q2 and Q3 &#8217;18&#8217;s expected earnings growth rates:<\/p>\n<p>Since July 1 &#8217;18 Q2 &#8217;18:<\/p>\n<ul>\n<li>Energy&#8217;s expected growth rate is now expected at +123.7% as of 8\/3\/18 vs the 140.9% as of July 1.<\/li>\n<li>Technology&#8217;s expected growth rate is now expected at 25.4% as of 8\/3\/18 vs 25.5% as of July 1.<\/li>\n<\/ul>\n<p>There are three of the 11 SP 500 sectors that show stronger revisions for Q3 &#8217;18, which is unusual since &#8211; at this time of the quarter &#8211; the pattern is typically that investors will see negative revisions (i.e. downward or sequentially lower growth rates ) for the quarter until that earnings season begins.<\/p>\n<p>The there sectors seeing upwardly revised growth rates for Q3 &#8217;18 are Financial&#8217;s, Health Care and Telco.<\/p>\n<p>(Source: Thomson Reuters IBES, &#8220;This Week in Earnings&#8221;)<\/p>\n<p><em><strong>SP 500 earnings data (by the numbers):\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong>Fwd 4-qtr est:<\/strong><\/em> $169.24 vs last week&#8217;s $168.88<\/li>\n<li><em><strong>PE ratio:<\/strong> <\/em>16.7x<\/li>\n<li><em><strong>PEG ratio:<\/strong><\/em>0.75x<\/li>\n<li><em><strong>SP 500 earnings yield:<\/strong> <\/em>+5.97%<\/li>\n<li><em><strong>Year-over-year growth of fwd est:<\/strong><\/em> +22.27% vs last week&#8217;s +22.23%<\/li>\n<\/ul>\n<p>The year-over-year growth of the forward estimate hit an all-time-high this week of 22.27% which is worth mentioning. Remember the last bullet point is the forward estimate, or Q3 &#8217;18 through Q2 &#8217;19. The slight softening in the Tech numbers is interesting given Apple&#8217;s results this past week. Despite the Street lifting EPS and revenue estimates for 2018 and 2019 for Apple, the Tech&#8217;s sectors expected growth for Q2 &#8217;18 fell a little and the q3 &#8217;18 stayed flat.<\/p>\n<p>It&#8217;s probably nothing right now, but if the revision patterns persist we&#8217;ll break them out for readers.<\/p>\n<p>The softening at the margins for Tech and Energy could simply be a case of high expectations.<\/p>\n<p>Thanks for reading,<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It might be hardly worth mentioning but looking at the data every week, it&#8217;s important to distinguish sentiment from reality&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":[95,123,91],"tags":[],"class_list":["post-7976","post","type-post","status-publish","format-standard","hentry","category-energy-sector","category-technology","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\/7976","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=7976"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7976\/revisions"}],"predecessor-version":[{"id":7980,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7976\/revisions\/7980"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}