Q3 earnings now positive:

  • Following latest flurry of results, FactSet shows blended y/y growth rate for Q3 S&P 500 EPS at 0.1%. This compares to -0.3% at the end of last week and -2.0% expected at the end of quarter. Also puts index on track for growth after five consecutive quarters of y/y declines. Other key metrics running above trend. Of the nearly 30% of companies that have now reported, 73% have reported EPS above consensus. While this is down from 78% at the end of last week, still better than 70% four-quarter average. In the aggregate, companies reporting results that are 7% above expectations, exceeding the respective one- and five-year average earnings surprise rates of 4.8% and 4.4%. In terms of revenue, blended growth rate is 2.6%, leaving sales on track for first y/y increase since Q4 2014. In addition, 60% of companies have beat consensus sales expectations, better than the 50% four quarter average. In the aggregate, companies reporting sales that are 1.2% above expectations, ahead of the respective one- and five-year average revenue surprise rates of 0.0% and 0.6%.