Below is an updated look at the earnings and revenue beat rates for the fourth quarter reporting period (which comes to an end next Thursday). Ā As shown below, 63.6% of US stocks that have reported this season have beaten earnings estimates, while 64% have beaten revenue estimates.
Barring a significant drop in beats next week, this earnings season will be the strongest we've seen for EPS versus estimates since Q4 2010. Ā It will also be the strongest revenue beat rate registered since Q2 2011.
Below is a look at how the earnings beat rate has changed as earnings season has progressed. Ā At the end of January, 688 companies had reported Q4 earnings, and 63.1% had beaten EPS estimates. Ā The earnings beat rate increased up to a high of 64.7% on February 6th, but it has pulled back a bit since then to its current level of 63.6%.
While the earnings beat rate has declined a bit from its highs earlier this month, the revenue beat rate has been steadily increasing. Ā As shown, on January 28th, the revenue beat rate was just 60.3% (still good compared to the last few quarters), but today it hit its highest level seen this earnings season at 64%.
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