This Week's Key Earnings Reports
The earnings season wrapped up last week, and it has been better than advertised:
In this tense period of potential trade wars and skirmishes and questions about the strength of the U.S. Dollar, it must be pointed out that companies with more than 50% of revenue outside of the United States (OUS) grew bottom lines two times faster than the others.
It’s obvious this has been a miserable earnings season for companies that missed or issued even a slight change to guidance. A part of the reason is the extent of the market rally and the herd mentality that runs amok when there is confusion or disappointment. That’s why earnings beats resulted in four-day rallies of only 1.1% versus the 1.3% five-year historical average and misses that saw stock valuations drubbed by 3.1% instead of a historical average of -2.4%.
Right now, the forward S&P 500 price-to-earnings (P/E) is 17.5, which is two percentage points higher than the average from recent years.
Estimates for the remainder of the calendar year bode well for current and even higher valuations.
This Week’s Key Earnings Report (company and consensus)
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