Here is an updated table on Apple’s 2019 and 2020 EPS and revenue estimates following their earnings report:
Is Apple (NASDAQ:AAPL) acting as a drag on the S&P 500 earnings estimate?
* Forward Q4 Estimate: $169.13 versus $170.01 from last week
* PE Ratio: 16x
* PEG Ratio: 3.77x
* S&P 500 Earnings Yield: 6.25% versus last week’s 6.38%
* Y/Y Growth Of The Forward Estimate: +4.2% vs last week’s 4.9%
Summary
Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) have to see their fiscal 2019 and 2020 estimates updated as well, but Apple’s continued negative revisions will weigh on the stock and the benchmark’s forward estimates since Apple remains the #2 weighing in the S&P 500. Obviously, Microsoft is #1 now.
The year-over-year growth of the S&P 500’s forward estimate has slowed to its lowest rate of growth at +4.2% since the correction began in late Sept ’18. I do expect Q1 ’19 to be the earnings trough for this cycle, with the shutdown now all but resolved.