Earnings of Wall Street firms are starting to make more noise on the street. Now that nearly 30% of the companies listed on the S&P 500 have completed their year-end reports, what stands out is the number of firms that beat analysts' expectations.
68% of published results have surprised markets for being better than anticipated. Yet the data signifies more. After 146 companies on the S&P 500 have already published their annual numbers, the percentages reveal that for now there are fewer companies making the cut than analysts expected. Last quarter, 359 of the 500 stocks on the S&P 500 posted earnings per share (EPS) that beat analysts' predictions.
At these season-high levels, the surprising figures "are lower than the historic average," said Paulo Gonçalves of Consulnor. Indeed, stock prices have made a positive impression on people's mind during the past few days.
Technology blowing up
Technology is faring rather well this season. The sector has been announcing earnings that the markets were not counting on. Companies are reporting average growth of 23% according to data from Bloomberg, and only two of twenty-three firms have not met analysts' expectations.
