Technology Shines, Consumer Discretionary Dims

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by: Bespoke Investment Group

So far this earnings season, 65% of companies have beaten their consensus analyst earnings per share estimates. For top line revenues, the beat rate is 9 points less at 56%.

Below is a look at the earnings and revenue beat rates by sector. This allows you compare the sector readings to the overall reading in order to see which sectors are outperforming or underperforming.

The Technology sector is knocking it out of the park this season with an 81% earnings beat rate and 69% revenue beat rate. For the earnings beat rate, just three additional sectors have readings above 65% - Healthcare, Industrials, and Financials. For revenues, the Energy sector is the only one that really stands out along with Tech as having a high reading.

Consumer stocks are having trouble keeping up this season. The earnings beat rate for Consumer Staples (63%) is slightly below the broad beat rate of 65%, but its revenue beat rate is very low at 33%. For Consumer Discretionary, its earnings beat rate is the fourth worst among all sectors at 52%, and the revenue beat rate of just 48% is the lowest of the cyclical sectors. While the consumer seems flush based on recent sentiment readings, consumer-dependent companies are having a hard time keeping up with analysts expectations this quarter.

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