All last week we pointed to the strong earnings numbers released by U.S. corporations. The overall results are in and point to a measure that confirms our sector by sector reports.
Expected growth in first-quarter earnings for companies in the S&P 500 index has now jumped to 50% from 39% in the prior week according to Thomson Reuters.
As we reported last week many companies like Citigroup Inc. (C), Bank of America Corp. (BAC) and Goldman Sachs Group Inc. (GS) each reported earnings growth far above analysts' estimates.
In this coming week the Q1 earnings season culminates with six of the 30 Dow Jones Industrial Average components and a third of the S&P 500 companies scheduled to post their operating results.
In the S&P 500 through Friday, 83% have already posted results above analysts' expectations. In an average quarter only 61% of companies beat the street estimates.
And companies are not sacrificing revenue growth in order to improve their bottom lines. Revenue too has also bested most analyst estimates. Thomson Reuters said 69% of those companies that have reported thus far have topped their revenue views.
Q1 will now mark two quarters in a row where the S&P 500 has recorded earnings growth. It adds additional evidence that when the government reports overall GDP growth estimates next Friday, those initial measurements will register stronger than Q4.
When all you read is gloom, turn here for a much different perspective.