We are about 90% done with earnings season and earnings continue to surprise to the upside. As things stand now, it�s about an even money bet that the median S&P firm will post double-digit year-over-year earnings growth. That would make it the 19th straight quarter. Looking forward to the second quarter, the median expectation is for 8.9% growth, which easily puts it within range of double-digits given anything like a normal surprise performance. So it is not unreasonable to think this streak may continue to 20 quarters. While the 10.1% growth is still lower than previous quarters it is much better than expected. The surprise ratio now stands at 3.0:1, down from 3.5:1 a week ago, and 3.8:1 two weeks ago but still very strong. Positive surprises have been widespread, with every sector showing more positive surprises than disappointments with the exception of Utilities, and the Utilities are tied.
Yet another double digit earnings season
As the earnings season winds down, some trends are clear. Yet another double digit quarter. Next quarter earnings expectations are rising. Large caps and mid caps have stellar earnings compared to small caps. Technology sector is laggard and Health Care and Materials sectors lead in surpassing earnings.