The Q4 2018 earnings season continued to pick up steam this week as another 100+ companies reported. Next week things kick into full gear, however, with an estimated 325+ companies set to report.
Below we take a look at the numbers we’ve seen so far this season. As shown in the first chart below, the bottom-line earnings per share beat rate now stands at 64.7%. This is roughly inline with the final reading seen last quarter, but it’s also low for where we are in the reporting period. Historically, the earnings beat rate drifts lower as earnings season progresses.
The top-line revenue beat rate actually ticked up a bit this week after finishing last week below 50%. As shown below, 54.9% of companies that have reported this season have beaten consensus revenue estimates. Even after the tick higher this week, top-line beats this season remain weaker than normal.