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According to new research, the first-quarter earnings season has started off a little softer than expected. However, another quarter of growth year-on-year is still likely.
Based on preliminary results—just 12% of S&P 500 companies have reported results so far, according to an analysis released late Thursday by FactSet—70% of reporting companies in the benchmark index have come in above Street estimates. FactSet said that this is below the five-year and 10-year averages.
FactSet says earnings were 6.1% above expectations, but below the five and ten-year averages. The historical figures are based on the actual results of all past quarters.
The S&P 500's first-quarter results are still projected to grow for a seventh consecutive quarter, according to FactSet, which said the “blended” earnings growth rate through Thursday—meaning a combination of the results already in and the estimates for those yet to arrive—was 7.2% so far.
Investor attention will likely turn in large part to some Magnificent Seven results due next week—Tesla (TSLA) and Google parent Alphabet (GOOG) are scheduled to report—but the earnings calendar will be busy with several other companies like Verizon (VZ), PepsiCo (PEP), Intel (INTC) and Boeing (BA) also set to announce their own numbers.
The results of health insurer Elevance are also expected. This comes days after UnitedHealth’s (UNH) disappointing results and lowered outlook sent its stock plummeting Thursday. Yesterday was the last day of a week that was shortened by holidays.
