The S&P 500 has realized five consecutive quarters of year-over-year earnings growth. Based on the third quarter earnings data so far, it looks as though this trend still has room to run. So far, 183 of 498 S&P 500 companies have reported year-over-year sales and earnings growth of 4.7% and 6.8% respectively.
Digging still deeper into earnings, reveals that 25 of 68 Technology companies have reported 29.7% year-over-year earnings growth.
How did we get here? Three important takeaways:
- Companies have been handily beating earnings estimates.
- Companies have not been “manufacturing” earnings beats by lowering guidance.
- Companies have been revising up their earnings guidance.
Watch the six-minute video above (filmed earlier this week) in which Macro analyst Ben Ryan digs into earnings season and explains why you shouldn’t “get off this train for earnings growth accelerating” just yet.