Q1 Sector EPS Growth vs. Estimates

In the table at right, we highlight year-over-year Q1 earnings growth for the S&P 500 and its ten sectors. As shown, Energy and Technology earnings growth has been the strongest at just over 22%. These two sectors are followed by Materials, Consumer Staples and Telecom, which have all seen earnings growth of more than 10%. Utilities, Industrials and Health Care are all in positive growth territory so far for the first quarter as well.

Only two sectors have seen negative earnings growth -- Consumer Discretionary and Financials. Unfortunately, these two sectors have been a big enough drag to pull earnings growth for the index as a whole down 12.70%.

At the start of earnings season, estimates for S&P 500 EPS growth was at -12.8%, so analysts have been pretty much spot on so far. On a sector basis, Financials and Consumer Discretionary have actually come in worse than analysts were expecting, but a number of sectors have reported much stronger than expected.

In the chart below, we highlight the difference between actual earnings growth and estimated earnings growth at the start of the quarter. As shown, the Tech sector has been the strongest versus expectations, followed by Materials, Telecom, Consumer Staples and Health Care. While Energy has seen the strongest earnings growth this quarter, it's actually worse than the 24.1% that analysts were expecting.

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Comments

[User 143167]

Here we go. That is exactly why investors should love a weak dollar and a commodity inflation.