The earnings picture has been weighed down by headwinds like inflation, supply-chain bottlenecks and macroeconomic uncertainty over the last few quarters and these factors were very much at play in the Q3 earnings season as well.
In addition to these headwinds, the strong U.S. dollar emerged as a significant negative earnings factor that weighed on the profitability of all companies with big international operations. These range from Tech players like Microsoft MSFT and Adobe ADBE to consumer operators like Coke KO and others.
With respect to the earnings season scorecard, we now have Q3 results for 461 S&P 500 members or 92.2% of the index’s total membership. Total earnings for these companies are up +2.6% from the same period last year on +12.4% higher revenues, with 69.4% beating EPS estimates and 67.9% beating revenue estimates.
The comparison charts below put the EPS and revenue beats % for these 461 index members in a historical context.
Image Source: Zacks Investment Research
Contrary to pre-season fears of this earnings season prompting a lower reset for expectations, the tone and substance of management guidance has been good enough; not great, but not bad either.
For more details about the Q3 earnings season and the overall earnings picture, please check out our weekly Earnings Trends report >>>>> Making Sense of the Earnings Picture and Estimate Revisions
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Microsoft Corporation (MSFT): Free Stock Analysis Report
CocaCola Company The (KO): Free Stock Analysis Report
Adobe Inc. (ADBE): Free Stock Analysis Report
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