S&P 500 Earnings Beat Rate at 72%

With 11% of S&P 500 companies reporting Q2 EPS, this quarter's EPS beat rate now stands at 72%.  While it's still early in the quarter, if this rate holds it would mark the second strongest quarterly beat rate since at least 1998.  What makes this rate even more impressive is the fact that so far this quarter, 34% of the companies reporting have been from the Financials sector, which many have feared would report disastrous quarters. 

In last week's Week In Review [PDF file], we mentioned that a better than expected earnings season could be the distraction needed to get investors' minds off of crumbling financials, higher oil and the weak economy.  So far so good.

In the chart below, we show the S&P 500 quarterly EPS beat rate since 1998.  

click to enlarge

Comments

[pshah]

Lets not forget that a lot of these positive earnings surprises were over substantially reduced estimates, especially for financials. Therefore, its too early to read anythng positive into this, given that the worst culprits like MER and C have yet to report.

[archman82011]

LOL. Yeah. I love when these companies match or beat their "own" lowered estimates, and the average no nothing american investor celebrates. Silly people.
The "game" of Wall Street is an interesting one to watch.
The hype. The comparisions.

We may be in a comical rally mode right now, but once the dust settles and the data keeps coming in, we will be lower again. Patience.

[sr9web]

XYZ Financial Inc. declares "We will lose $5 Billion!". Instead, when they lose only $4.9 billion - they "beat" the earnings forecast. Bravo!

[fxtrader07]

that 'best beating' since 1998 only goes to show that the estimates-beating-game goes on as wild as never before. the only reasonable comparison would be comparing quarterly results with the guidance given by companies qwhen they reported the quarter before. I haven't researched that - but the numbers would be gruesome.
only morons and full-time idiots ever care for 'beating estiamtes' anymore - and will pay pnicely for it. LOL