With Walmart’s (NYSE:WMT) earnings report this coming week, the Q2 ’16 earnings season unofficially comes to an end.
Ex-Energy, (and per Factset), the S&P 500 grew earnings in Q2 ’16 +0.4% and grew revenue +2.5%.
Thomson Reuters data (by the numbers):
- Forward 4-quarter estimate: $125.88 versus $126.12 last week.
- P.E ratio: 17(x)
- PEG ratio: 11.83(x)
- S&P 500 earnings yield: 5.76%. The S&P 500 hasn’t been above a 6% earnings yield since June 24th.
- Year-over-year growth of the forward estimate: +1.47% versus last week’s +1.48% and still disappointingly subdued.
If you are overweight Tech and Apple (NASDAQ:AAPL) for Q2 ’16 earnings, your portfolio saw a nice bounce in July. Financials, the other large market cap weighting in the S&P 500, continues to trade like it has a piano on its back.
For nine months now, my own expectation for earnings growth is that the ‘forward 4-quarter growth rate” would gradually start to rise, and for nine months that expectation has been wrong, even though the S&P 500 has broken out to new all-time-highs.
Talk about being right for the wrong reasons.