We’re now in the thick of the Q3 earnings reporting period with 130 companies reporting since just the close last night.  As shown in our Earnings Explorer snapshot below, earnings will be in overdrive for the next two weeks before dying down in mid-November.

Through yesterday’s close, 248 companies had reported so far this season, and 75% of them had beaten consensus bottom-line EPS estimates.  However, just 63% of stocks have beaten sales estimates, and more companies have lowered guidance than raised guidance.  In terms of stock price reaction to reports this season, so far investors have seen earnings as relatively bullish as the average stock that has reported has gained 0.60% on its earnings reaction day.  Below we show another snapshot from our Earnings Explorer featuring the aggregate results of this season’s reports and a list of the stocks that have reacted the most positively to earnings.  Four stocks so far have gained more than 20% on their earnings reaction days — PETS, BIIB, APHA, and LLNW.

We provide clients with a beat-rate monitor on our Earnings Explorer page as well.  Below is a chart showing the rolling 3-month EPS and sales beat rates for US companies over the last 5 years.  After a dip in the EPS beat rate earlier in the year, we’ve seen it steadily increase over the last few months up to its current level of 64.46%.  That’s more than five percentage points above the historical average of 59.37%.

In terms of sales, 57.87% of companies have beaten top-line estimates over the last 3 months, which is much closer to the historical average than the bottom-line beat rate.  Start a two-week free trial to Bespoke Institutional to begin using our Earnings Explorer and additional investment tools now.  If you use this checkout link, you’ll receive a 10% discount on an annual membership if you stick with it past your trial period.

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