Our FREE Investing Newsletter
    Get Exclusive Summer Sale Discounts

    By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. All Hedgeye products and services are subject to Hedgeye’s Terms of Service available at www.hedgeye.com/terms_of_service

Below are some key takeaways from 1Q 2018 earnings season:

  • Broad-Based Strength: 497 / 499 S&P 500 companies have reported for Q1 and sales and earnings growth is +8.2% YY & +23.7% YY, respectively. For context on how growth rates have held in, sales and earnings growth rates were tracking +9.4% & +25.1% YY at the halfway point. For the second consecutive quarter, every sector has reported growth on both the top & bottom line.
  • Sales Growth: Sales growth for the S&P 500 index in aggregate is tracking +8.2% YY. This marks the fastest pace of top-line growth since Q3 of 2011. Like earnings, this will mark the 7th consecutive quarter of sales growth and peak second derivative acceleration.
  • Information Technology: The sector faced its first difficult comp this quarter. Going into reporting season, consensus Bloomberg estimates for the sector were for +20.6% YY earnings growth on top of 21.7% YY earnings growth in Q1 of 2017. Information Tech companies handily beat estimates. The 69 Tech companies reported YY earnings growth of +30.5%.

Earnings Season: Still Strong After All These Quarters - earnings scorecard

Want to know where we go from here and the investing implications? Sign-up for ETF Pro and get our Macro team's favorite ETF ideas each month.

Earnings Season: Still Strong After All These Quarters - etf pro