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Earnings Overview: 2023 Q2: Difference between revisions
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== Estimates == | == Estimates == | ||
[[File:Screenshot 2023-07-17 154617.png|center|thumb|673x673px|https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_063023.pdf?_ga=2.210034645.1136161000.1689606162-1317705232.1681150838&_gl=1*1du6cs7*_ga*MTMxNzcwNTIzMi4xNjgxMTUwODM4*_ga_2Q3PTT96M8*MTY4OTYyNDc5Ni4yOC4xLjE2ODk2Mjg3MjEuMC4wLjA.]] | |||
Key Insights: | |||
* If -7.2% is the actual earnings decline for the quarter, it will mark the largest earnings decline reported by the index since Q2 2020 (-31.6%). It will also mark the third straight quarter in which the index has reported a (year-over-year) decrease in earnings. | |||
* In terms of estimate revisions, analysts lowered earnings estimates for Q2 2023 by a smaller margin than average during the quarter. On a per-share basis, estimated earnings for the second quarter decreased by 3.0% from March 31 to June 30. This decrease is smaller than the 5-year average of -3.4% and smaller than the 10-year average of -3.4%. | |||
* In terms of revenues, analysts have also lowered their estimates during the quarter. As of today, the S&P 500 is expected to report a (year-over-year) revenue decline of -0.3%, compared to the expectations for flat revenues (0.0%) on March 31. | |||
* The estimated net profit margin for the S&P 500 for Q2 2023 is 11.4%, which is equal to the 5-year average of 11.4%, but below the previous quarter’s net profit margin of 11.5% and below the year-ago net profit margin of 12.2%. | |||
* The percentage of S&P 500 companies issuing negative EPS guidance for Q2 2023 is 59% (67 out of 113), which is equal to the 5-year average of 59% and below the 10-year average of 64%. | |||
* The forward 12-month P/E ratio is 18.9, which is above the 5-year average (18.6) and above the 10-year average (17.4) | |||