So far this earnings season, 64% of U.S. companies that have reported earnings have beaten earnings estimates, while 63% of companies have beaten revenue estimates. As we highlighted last Friday, both of these readings are strong compared to past quarters over the last few years.
Below we have broken down the earnings and revenue beat rates this earnings season by sector. As shown, the Technology sector has the highest earnings beat rate at 72%, followed by Consumer Staples (69%), and Healthcare (68%). The Materials sector has by far the worst earnings beat rate at 44%. Financials is the second worst at 58%.
In terms of revenues, Healthcare has the highest top-line beat rate, followed by Technology and Energy, which are both at 68%. Consumer Discretionary has the lowest revenue beat rate at 53%, while Materials is second worst at 54%. Based on both earnings and revenues, Technology is having the best earnings season vs. expectations, while Materials is having the worst.