Earnings season happens each quarter , whereby the majority of large, listed companies announce their quarterly earnings . Important to note that whilst it is called earnings season, there are several different factors announced in a company’s financials that play a role, none more so crucial than comments made by the executives of the companies.
If we take a broader look at how the S&P 500 is doing by sector in this earnings season, overall, 51% of the companies in the S&P 500 have reported actual results for Q2 2023 to 28 July 2023. Of these companies, 80% have reported actual EPS above estimates, which is higher than both the five-year average and the 10-year average for the S&P 500. Six of the 11 sectors report year-over-year earnings growth, led by the consumer discretionary and communication services sectors.
Highlighted in the table below is just how well each sector has done against the expectations set by analysts.Some of the main talking points in this earnings season are Tesla and Johnson & Johnson. Tesla’s share price dropped just shy of 10% in the hours/day following its Q2 2023 earnings announcement. This drop came despite beating its estimated EPS by more than 11% in the same period and having a 47% increase in revenue versus the same point in 2022.