In typical fashion, the retailers wrap up the earning season. That procession begins this week when several department stores report their first quarter results. The S&P 500 multi-line retailers have struggled in the last couple of quarters, but this season they are expected to put up earnings per share (EPS) growth of 9.5%, and revenue growth less that half of that at 4.2%.
The big names from that industry reporting this week are Macy’s, J.C. Penney (no longer in the S&P 500), Kohl’s and Nordstrom.
How are we doing?
Expectations for S&P 500 earnings growth for the first quarter stand at 2.1%, a nice improvement from the -1.5% expected at the beginning of the season. On the flip-side, revenues are anticipated to decline 2.0%.
Leaders
Earnings:
Health Care (20.8%). Notable industry: Biotechnology (41.3%).
Financials (12.4%). Notable industry: Capital Markets (18.4%)
Revenues:
Health Care (10.3%). Notable industry: Biotech (28.4%).
Information Technology (6.8%). Notable industry: Internet Software & Services (21.9%)
Laggards
Earnings:
Energy (-54.2%). Notable industry: Oil, Gas and Consumable Fuels (-65.1%)
Materials (-0.4%). Notable industry: Construction Materials (-85.7%)
Revenues:
Energy (-36.5%). Notable industry: Oil, Gas and Consumable Fuels (-39.4%).
Materials (-9.3%). Notable industry: Chemicals (-10.6%).
Beat/Miss/Match
Earnings: With 449 S&P 500 companies reporting thus far, 54% have beaten the Estimize consensus, 36% have missed and 9% have met. This is compared to Wall Street estimates, of which 69% of companies have beat on the bottom-line, 22% have missed and 9% have met.
Revenue: 37% have beaten the Estimize consensus, while 63% have missed. This is compared to Wall Street estimates, of which 44% of companies have beat and 56% have missed.
