© Reuters. Reporting season has been mixed so far – RBC Capital
The reporting season continues to look mixed, analysts at RBC Capital said in a note to clients on Monday.
They acknowledged that with more than half not yet available, these statistics continue to change, but said the percentage of companies in the index beating consensus EPS forecasts remains a bit lower than last quarter.
Additionally, both earnings per share and revenue earnings are declining for the . “Within the Russell 1000, companies posting superior earnings are slightly outperforming the broader market in terms of their stock price reactions, but to a lesser extent than we saw last quarter,” the analysts added. “The good news is that companies that don't meet consensus earnings per share forecasts aren't underperforming as much as usual either.”
Additionally, while small-cap companies that posted superior earnings have performed in line, RBC Capital notes that the good news is that companies without consensus EPS forecasts are underperforming.
“The 2023 S&P 500 EPS (a combination of actuals and estimates for notable companies) now stands at $223 (unchanged from the 2022 actual and above the 2023 forecast of $221 to start the year)” , the analysts said. “Meanwhile, the S&P 500 EPS forecast for 2024 now stands at $243, down from the $245 forecast a few weeks ago.”
The forecast growth rate for 2024 EPS is now just 9% versus 11% a few weeks ago. RBC expected some downward revisions to upward consensus earnings per share (EPS) forecasts for 2024.
