Financial Professionals

Insights

Q1 2014 SPX Earnings Scorecard

04/21/2014

To date, 82 companies listed on the S&P 500® Index (SPX) have reported Q1 earnings, largely dominated by financial companies. Those financial companies that reported have recorded a 6.71% earnings per share surprise and a modest 0.84% sales surprise. Overall SPX earnings-per-share growth for the quarter is tracking at 3.65% while sales growth is tracking at 1.39%.


Source: Bloomberg

The SPX closed the week at 1864.85, placing it modestly higher for the year at 0.89%, but still down 0.40% for the second quarter. The past four trading sessions recovered nearly 61% (Figure 1) of this month’s sell-off from the all-time high of 1897.28 on April 4 to the low of 1814.36 on April 11. The overall technical formation (Figure 2) of the past 18 months remains pristinely bullish, with the 50-day moving average at 1851.16, the 100-day moving average at 1830.62, and the all-important 200-day moving average at 1766.19.

The SPX is trading at 17.20 times current earnings of $108.43. Profit margins have moderated from last quarter’s 9.55% to 9.48% currently. The current quarter’s earnings are tracking at $27.82, slightly below Q4 2013’s $28.41.

Figure 1: SPX Year to Date

Source: Bloomberg

Figure 2: SPX Prior 18 months

Source: Bloomberg

The earnings week ahead presents 158 SPX companies reporting, the biggest reporting week of the season. Thursday highlights the week with 64 companies reporting, led by Amazon, Caterpillar, Starbucks, Microsoft, and Visa. On Wednesday, tech heavyweights Apple and Facebook will report.

6 SPX Companies

Company Ticker

Mon., April 21

EPS Estimate

Hasbro Inc.

HAS US

4/21/2014

0.098

SunTrust Banks Inc.

STI US

4/21/2014

0.663

Halliburton Co.

HAL US

4/21/2014

0.711

Kimberly-Clark Corp.

KMB US

4/21/2014

1.472

Netflix Inc.

NFLX US

4/21/2014

0.812

Zions Bancorporation

ZION US

4/21/2014

0.418

Pentair Ltd.

PNR US

4/22/2014

0.728

31 SPX Companies

Company Ticker

Tues., April 22

EPS Estimate

Omnicom Group Inc.

OMC US

4/22/2014

0.789

Lockheed Martin Corp.

LMT US

4/22/2014

2.535

Allegheny Technologies Inc.

ATI US

4/22/2014

-0.070

Regions Financial Corp.

RF US

4/22/2014

0.195

Travelers Cos Inc.

TRV US

4/22/2014

2.155

Prologis Inc.

PLD US

4/22/2014

0.421

United Technologies Corp.

UTX US

4/22/2014

1.273

Genuine Parts Co.

GPC US

4/22/2014

1.019

Comcast Corp.

CMCSA US

4/22/2014

0.643

Harley-Davidson Inc.

HOG US

4/22/2014

1.088

Simon Property Group Inc.

SPG US

4/22/2014

2.242

Interpublic Group of Cos. Inc.

IPG US

4/22/2014

-0.080

McDonald's Corp.

MCD US

4/22/2014

1.238

Bank of New York Mellon Corp.

BK US

4/22/2014

0.539

Xerox Corp.

XRX US

4/22/2014

0.238

Illinois Tool Works Inc.

ITW US

4/22/2014

0.979

Total System Services Inc.

TSS US

4/22/2014

0.433

Gilead Sciences Inc.

GILD US

4/22/2014

0.905

CR Bard Inc.

BCR US

4/22/2014

1.861

Yum! Brands Inc.

YUM US

4/22/2014

0.837

AT&T Inc.

T US

4/22/2014

0.697

Torchmark Corp.

TMK US

4/22/2014

1.507

Nabors Industries Ltd.

NBR US

4/22/2014

0.152

FMC Technologies Inc.

FTI US

4/22/2014

0.500

Intuitive Surgical Inc.

ISRG US

4/22/2014

3.316

Amgen Inc.

AMGN US

4/22/2014

1.940

Juniper Networks Inc.

JNPR US

4/22/2014

0.290

International Game Technology

IGT US

4/22/2014

0.189

Discover Financial Services

DFS US

4/22/2014

1.254

Wynn Resorts Ltd.

WYNN US

4/22/2014

2.061

41 SPX Companies

Company Ticker

Wed., April 23

EPS Estimate

Air Products & Chemicals Inc.

APD US

4/23/2014

1.356

Northrop Grumman Corp.

NOC US

4/23/2014

2.152

Dr Pepper Snapple Group Inc.

DPS US

4/23/2014

0.592

Praxair Inc.

PX US

4/23/2014

1.508

Procter & Gamble Co.

PG US

4/23/2014

1.017

Boeing Co.

BA US

4/23/2014

1.545

Ryder System Inc.

R US

4/23/2014

0.870

Thermo Fisher Scientific Inc.

TMO US

4/23/2014

1.402

Dow Chemical Co.

DOW US

4/23/2014

0.707

Biogen Idec Inc.

BIIB US

4/23/2014

2.559

Delta Air Lines Inc.

DAL US

4/23/2014

0.289

Gannett Co Inc.

GCI US

4/23/2014

0.460

General Dynamics Corp.

GD US

4/23/2014

1.636

TE Connectivity Ltd.

TEL US

4/23/2014

0.910

Johnson Controls Inc.

JCI US

4/23/2014

0.649

Amphenol Corp.

APH US

4/23/2014

0.957

Reynolds American Inc.

RAI US

4/23/2014

0.738

EMC Corp/MA

EMC US

4/23/2014

0.349

Ingersoll-Rand PLC

IR US

4/23/2014

0.261

Norfolk Southern Corp.

NSC US

4/23/2014

1.149

Avery Dennison Corp.

AVY US

4/23/2014

0.661

QUALCOMM Inc.

QCOM US

4/23/2014

1.209

Robert Half International Inc.

RHI US

4/23/2014

0.436

Stryker Corp.

SYK US

4/23/2014

1.089

Citrix Systems Inc.

CTXS US

4/23/2014

0.585

F5 Networks Inc.

FFIV US

4/23/2014

1.252

Texas Instruments Inc.

TXN US

4/23/2014

0.406

Apple Inc.

AAPL US

4/23/2014

10.160

Safeway Inc.

SWY US

4/23/2014

0.182

Lam Research Corp.

LRCX US

4/23/2014

1.167

Tractor Supply Co.

TSCO US

4/23/2014

0.369

Crown Castle International Corp.

CCI US

4/23/2014

1.120

Flowserve Corp.

FLS US

4/23/2014

0.746

Equifax Inc.

EFX US

4/23/2014

0.868

E*TRADE Financial Corp.

ETFC US

4/23/2014

0.228

Varian Medical Systems Inc.

VAR US

4/23/2014

1.028

Facebook Inc.

FB US

4/23/2014

0.240

Xilinx Inc.

XLNX US

4/23/2014

0.552

AvalonBay Communities Inc.

AVB US

4/23/2014

1.629

Assurant Inc.

AIZ US

4/23/2014

1.538

O'Reilly Automotive Inc.

ORLY US

4/23/2014

1.579

 

64 SPX Companies

Company Ticker

Thurs., April 24

EPS Estimate

Mead Johnson Nutrition Co.

MJN US

4/24/2014

0.907

Noble Energy Inc.

NBL US

4/24/2014

0.748

Nucor Corp.

NUE US

4/24/2014

0.376

Diamond Offshore Drilling Inc.

DO US

4/24/2014

0.647

Nielsen Holdings NV

NLSN US

4/24/2014

0.419

PulteGroup Inc.

PHM US

4/24/2014

0.209

Bemis Co Inc.

BMS US

4/24/2014

0.565

T Rowe Price Group Inc.

TROW US

4/24/2014

1.036

Cabot Oil & Gas Corp.

COG US

4/24/2014

0.263

AmerisourceBergen Corp.

ABC US

4/24/2014

1.004

SCANA Corp.

SCG US

4/24/2014

1.114

Wyndham Worldwide Corp.

WYN US

4/24/2014

0.745

Alexion Pharmaceuticals Inc.

ALXN US

4/24/2014

1.264

DR Horton Inc.

DHI US

4/24/2014

0.338

Waste Management Inc.

WM US

4/24/2014

0.446

Coca-Cola Enterprises Inc.

CCE US

4/24/2014

0.441

Stanley Black & Decker Inc.

SWK US

4/24/2014

0.964

Lorillard Inc.

LO US

4/24/2014

0.719

Quest Diagnostics Inc.

DGX US

4/24/2014

0.885

Time Warner Cable Inc.

TWC US

4/24/2014

1.680

Entergy Corp.

ETR US

4/24/2014

1.314

EQT Corp.

EQT US

4/24/2014

0.871

Freeport-McMoRan Copper & Gold Inc.

FCX US

4/24/2014

0.423

Peabody Energy Corp.

BTU US

4/24/2014

0.023

Helmerich & Payne Inc.

HP US

4/24/2014

1.479

Hershey Co.

HSY US

4/24/2014

1.143

Sigma-Aldrich Corp.

SIAL US

4/24/2014

1.032

Celgene Corp.

CELG US

4/24/2014

1.651

Starwood Hotels & Resorts Worldwide Inc.

HOT US

4/24/2014

0.562

General Motors Co.

GM US

4/24/2014

0.232

Delphi Automotive PLC

DLPH US

4/24/2014

1.085

Eli Lilly & Co.

LLY US

4/24/2014

0.706

Aetna Inc.

AET US

4/24/2014

1.551

Southwest Airlines Co.

LUV US

4/24/2014

0.161

Altria Group Inc.

MO US

4/24/2014

0.568

Raytheon Co.

RTN US

4/24/2014

1.766

NASDAQ OMX Group Inc.

NDAQ US

4/24/2014

0.711

3M Co.

MMM US

4/24/2014

1.796

Zimmer Holdings Inc.

ZMH US

4/24/2014

1.467

Verizon Communications Inc.

VZ US

4/24/2014

0.853

Caterpillar Inc.

CAT US

4/24/2014

1.222

Cameron International Corp.

CAM US

4/24/2014

0.715

United Parcel Service Inc.

UPS US

4/24/2014

1.093

CMS Energy Corp.

CMS US

4/24/2014

0.658

Edwards Lifesciences Corp.

EW US

4/24/2014

0.690

Principal Financial Group Inc.

PFG US

4/24/2014

0.921

VeriSign Inc.

VRSN US

4/24/2014

0.626

Altera Corp.

ALTR US

4/24/2014

0.324

KLA-Tencor Corp.

KLAC US

4/24/2014

1.108

Eastman Chemical Co.

EMN US

4/24/2014

1.593

Broadcom Corp.

BRCM US

4/24/2014

0.455

Newmont Mining Corp.

NEM US

4/24/2014

0.195

Republic Services Inc.

RSG US

4/24/2014

0.445

Visa Inc.

V US

4/24/2014

2.178

Chubb Corp

CB US

4/24/2014

1.560

Amazon.com Inc.

AMZN US

4/24/2014

0.233

Stericycle Inc.

SRCL US

4/24/2014

0.987

PerkinElmer Inc.

PKI US

4/24/2014

0.438

Starbucks Corp.

SBUX US

4/24/2014

0.557

Microsoft Corp.

MSFT US

4/24/2014

0.629

Cerner Corp.

CERN US

4/24/2014

0.372

Cincinnati Financial Corp

CINF US

4/24/2014

0.544

Leggett & Platt Inc.

LEG US

4/24/2014

0.378

Masco Corp.

MAS US

4/24/2014

0.178

16 SPX Companies

Company Ticker

Fri., April 25

EPS Estimate

Laboratory Corp of America Holdings

LH US

4/25/2014

1.581

Aon PLC

AON US

4/25/2014

1.180

AbbVie Inc.

ABBV US

4/25/2014

0.678

DTE Energy Co.

DTE US

4/25/2014

1.406

Colgate-Palmolive Co.

CL US

4/25/2014

0.682

Moody's Corp.

MCO US

4/25/2014

0.909

Tyco International Ltd.

TYC US

4/25/2014

0.405

Ventas Inc.

VTR US

4/25/2014

1.072

Covidien PLC

COV US

4/25/2014

0.951

Weyerhaeuser Co.

WY US

4/25/2014

0.238

State Street Corp.

STT US

4/25/2014

1.001

Whirlpool Corp.

WHR US

4/25/2014

2.306

VF Corp.

VFC US

4/25/2014

0.633

Ford Motor Co.

F US

4/25/2014

0.310

FLIR Systems Inc.

FLIR US

4/25/2014

0.264

American Electric Power Co Inc.

AEP US

4/25/2014

0.878

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.