Record Share of Companies Are Beating Earnings Estimates

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A record share of companies are beating earnings estimates, but investors wonder how much results have already been baked into stock prices

With the earnings season more than halfway over, most companies in the S&P 500 have surpassed analysts’ profit expectations. As of Friday, results from 87% of those that have reported were better than expected, according to Refinitiv. That is above the historical average of 65% and on pace for the highest share since Refinitiv began tracking the metric in 1994.Going back to 1994, companies have beat earnings estimates by an average of 3.6%, according to Refinitiv.

The problem is that investors aren’t sure how much of the good news already has been baked into share prices.

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