Week 2

Abstract

Key Metrics  Earnings Growth: For Q2 2022, the estimated earnings growth rate for the S&P 500 is 4.1%. If 4.1% is the actual growth rate for the quarter, it will mark the lowest earnings growth rate reported by the index since Q4 2020 (3.8%).  Earnings Revisions: On March 31, the estimated earnings growth rate for Q2 2022 was 5.9%. Seven sectors are expected to report lower earnings today (compared to March 31) due to downward revisions to EPS estimates.  Earnings Guidance: For Q2 2022, 71 S&P 500 companies have issued negative EPS guidance and 32 S&P 500 companies have issued positive EPS guidance.  Valuation: The forward 12-month P/E ratio for the S&P 500 is 15.8. This P/E ratio is below the 5-year average (18.6) and below the 10-year average (16.9).  Earnings Scorecard: For Q2 2022 (with 18 S&P 500 companies reporting actual results), 13 S&P 500 companies have reported a positive EPS surprise and 15 S&P 500 companies have reported a positive revenue surprise.