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3Q13 Earnings Scorecard: Early Trends

With SPX constituent earnings set to crescendo over the next couple of weeks, below we provide a quick look at early earnings trends across the S&P500

Beat-Miss:  We’re currently running on par with 2Q13 results with ~54%  and ~70% of companies beating top and bottom line estimates, respectively. 

Style Factor Performance:   On balance, earnings results have tracked style factor price performance with small cap, lower yield, higher growth companies performing better vs prevailing expectations while Higher Yield, Lower Beta/Short Interest/Leverage companies are coming in on the wrong side of sales growth estimates.  

Fundamental Performance:    Mixed results here with only ~50% of companies reporting registering sequential acceleration in sales or earnings growth.  Margin performance has been slightly worse with >50% of companies reporting sequential margin contraction.  Peak margins/corporate profitability and largely exhausted cost leverage will remain an ongoing fundamental overhang. 

From a sector perspective, Healthcare, Financials, & Consumer Discretionary are the fundamental laggards while Materials, Tech and Energy are reflecting improving sales/earnings growth trends.

Enjoy the weekend.

3Q13 Earnings Scorecard:  Early Trends - ES Table

3Q13 Earnings Scorecard:  Early Trends - ES SF Table

3Q13 Earnings Scorecard:  Early Trends - ES OP Table

*Note: Prices/Data as of 10/17/13 close

3Q13 Earnings Scorecard:  Early Trends - Sector Summary

Christian B. Drake

Senior Analyst