Top-Line Numbers Coming In Strong

by: Bespoke Investment Group

It's still too early to draw any significant conclusions about this earnings season, but one positive we've seen so far is the revenue beat rate. As shown below, 60.2% of the companies that have reported so far this season have beaten revenue estimates. One of the big negatives of the past two earnings seasons was a very weak revenue beat rate, so if companies can continue to post strong top-line sales numbers, the market should like it.

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For those wondering, the bottom-line earnings beat rate for the 101 companies that have reported so far this season is 59.4%. As shown below, this is about in line with what we've seen for the past seven earnings seasons.

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