Q2 Earnings Strong
As we enter into the earnings reporting season Factset July 13, 2018 reports the second highest number of S&P500 companies have issued positive earnings guidance for Q2 since 2006. Factset estimates about 20% earnings growth for Q2 2018 and for the next two quarters. Source: Factset
The about 20% Q2 estimate is after 26.6% year-over-year first quarter 2018 S&P500 earnings growth. Source: Thomson Reuters
Growth is expected to moderate in 2019. From conference calls the most cited negative factor has been and is expected to be the stronger U.S. dollar that reduces foreign revenue. Source: Factset
Zacks July 11 reports results from 22 S&P500 companies that have fiscal Q2 that ended in May. Total earnings are up an average of 29% on 12.5% higher revenues. 90.9% of companies beat estimates.
This post updates my 4-page extensive "Stay the Course, Open an Umbrella, or Build an Ark?" equity market update and my "Participate Yet Protect" recommendations at https://tinyurl.com/y74xbjfr which is a safe pdf file.
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