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Earnings Season to Date

04/23/2012
As of the close of business on Friday, April 20, 2012, the S&P 500® Index (SPX) ended the day at 1378.53 – up 9.62% year to date (Figure 1.1).
 
Q1 EARNINGS RESULTS TO DATE
 
•  122 of 500 SPX companies have reported Q1 earnings to date:
    o   Energy – 5 out of 43
    o   Materials – 8 out of 30
    o   Industrials – 16 out of61
    o   Consumer Discretionary – 19 out of 81
    o   Consumer Staples – 9 out of 42
    o   Health Care – 11 out of 51
    o   Financials – 29 out of 81
    o   Technology – 23 out of 71
    o   Telecommunications – 1 out of 8
    o   Utilities – 1 out of 32
•  Q1 Overall SPX EPS  growth is tracking +6.31% vs. Q4 +4.6%
•  Q1 Overall SPX sales growth is tracking +4.74% vs. Q4 +7.20%
•  Q1 Materials EPS growth once again is tracking negative at -13% vs. Q4 -12.5%
•  Q1 Energy sales growth remains strong at +23% vs. Q4 +15.5%
•  Q1 Financials EPS growth is tracking +10% vs. Q4 -7%
•  Q1 Financials sales growth is tracking +2.5% vs. Q4 -1.2%
•  Q1 Technology sales growth +5.47% is tracking below Q4 +10.24%, however, AAPL has yet to report
•  Q1 SPX EPS positive surprises are tracking at 80% –  well above Q4’s +64%
•  Q1 SPX EPS negative surprises are tracking at 10% – much better than Q4’s +30%
 
THE WEEK OF APRIL 23 BRINGS THE FOLLOWING IMPORTANT EARNINGS
 
I view the week ahead as the most impactful for the direction of the SPX and will be watching:
 
Monday, April 23, 2012
Energy – Conoco Phillips (COP)
Technology – Texas Instruments (TXN)
Industrials – Eaton Corp (ETN)
Financials – SunTrust Banks (STI)
Consumer Discretionary – Netflix (NFLX)
 
Tuesday, April 24, 2012
Energy – Baker Hughes (BHI)
Technology – Apple (AAPL)
Telecommunication – AT&T (T)
Materials – United States Steel (X)
Industrials – United Technology (UTX); 3M Cos. (MMM); Norfolk Southern (NSC)
Health Care – Amgen (AMGN)
Financials – Regions Financial (RF)
Consumer Discretionary – Coach (COH)
Consumer Staples – Hershey Co. (HSY)
 
Wednesday, April 25, 2012
Technology – Corning (GLW); Akamai (AKAM); Citrix Systems (CTXS)
Telecommunication – Sprint Nextel (S)
Materials – Praxair PX; Cliffs Natural Resources (CLF)
Utilities – Southern Co. SO; Next Era Energy (NEE)
 
Thursday, April 25, 2012
Energy – Exxon Mobil (XOM); Occidental (OXY)
Technology – Western Digital (WDC)
Telecommunication – Metro Pcs (PCS)
Materials – Dow Chemical (DOW); Ball Corp. (BALL)
Industrials – United Parcel (UPS); Tyco International (TYC); Lockheed Martin (LMT)
Health Care – Bristol Myers Squibb (BMY); Aetna (AET); Celgene Corp. (CELG0; Gilead Sciences (GILD)
Financials – CME Group (CME)
Utilities – Dominion Resources (D); Xcel Energy (XEL); Entergy (ETR)
Consumer Discretionary – Amazon (AMZN); Ford Motor (F); Starbucks (SBUX); Whirlpool (WHR); Time Warner Cable (TWC)
Consumer Staples – Pepsi (PEP); Altria (MO); Colgate Palmolive (CL); Mead Johnson (MEAD); Kellogg (K)
 
Friday, April 26, 2012
Energy – Chevron Corp (CVX); Apache Corp (APA)
Materials – Newmont Mining (NEM); International Paper (IP)
Health Care – Merck (MRK)
Financials – Simon Property Group (SPG)
Utilities – DTE Energy (DTE)
Consumer Discretionary – VF Corp. (VFC)
Consumer Staples – Proctor & Gamble (PG)
 
Figure 1.1 S&P 500 Index (SPX) Year to Date

Source:  Bloomberg

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.