All posts from Zacks
Zacks in Our Research. Your Success.,

Alphabet, McDonald's, Caterpillar and GM are part of Zacks Earnings Preview

For Immediate Release

Chicago, IL – July 24, 2017 – releases the list of companies likely to issue earnings surprises. This week’s list includes Alphabet (NASDAQ: GOOGL Free Report), McDonald’s (NYSE: MCD Free Report), Caterpillar (NYSE: CAT Free Report) and GM (NYSE: GM Free Report).

To see more earnings analysis, visit

Every day, makes their Bull Stock of the Day available, free of charge. To see it, click here .

4 Takeaways from Q2 Earnings Season

Earnings reports are front and center this week, with more than 800 companies coming out with quarterly results, including 183 S&P 500 members. With results from 97 S&P 500 members already out, as of Friday, July 21st, we will have crossed the halfway mark by the end of this week. The results thus far provide a positive and reassuring view of corporate earnings, which will most likely get strengthened and reconfirmed through the remainder of this reporting cycle.

Here are some of the positives that we can glean either from the results that have come out already or can reasonably be expected to transpire in the coming days.

First , an abundance of positive surprises. We typically don’t give this factor a lot of weight in evaluating or assessing an earnings season since we all know that management teams are experts in managing expectations. Even then, the trend emerging in the Q2 earnings season is noteworthy for two reasons. First, estimates for the quarter had not fallen by as much as had historically been the case. Second, the proportion of positive revenue surprises, a much harder variable to manipulate relative to earnings, is really off the chart.

Second , the earnings and revenue growth pace is steadily going up relative to pre-season expectations. Total Q2 earnings for the index are currently expected to be up +8.6% from the same period last year +4.7% higher revenues.

Please note that the +8.6% growth rate is the blended growth rate; it combines the actual growth for the 97 S&P 500 members that have reported with estimates for the still-to-come 403 index members. At the start of the quarter, the expectation was for earnings growth of +7.9%, which came down as the quarter unfolded, reaching as low as +5.6% just ahead of the start of the reporting season. Since plenty of results are still to come, the actual Q2 earnings growth could very well go above +10%, which will follow the +13.3% earnings growth in the preceding quarter.

Q2 earnings growth may be on track to come below the prior-quarter’s level, but the quarter’s dollar tally of earnings is on track to reach a new all-time quarterly record, surpassing the 2016 Q4 level.

Third , Q2 growth is broad-based and not dependent on one or two sectors. There is strong growth contribution from the Finance, Technology and Energy sectors in Q2, but we have 11 of the 16 Zacks sectors on track to produce more earnings than the year-earlier period.

Fourth , estimates for the September quarter have started coming down, but the pace and magnitude of negative revisions compares favorably to other comparable periods. Total Q3 earnings are currently expected to be up +5.4% from the same period last year, down from +6.3% at the start of July. This is a reassuring start on the revisions front, but we will have to see if this trend will remain in place through the rest of this earnings season.

Here are this early week’s key earnings reports:

Monday (7/24) : Google’s parent Alphabet (NASDAQ: GOOGL Free Report) is one of three index members reporting after the close.

Tuesday (7/25) : On a very busy reporting docket with 37 S&P 500 members reporting results (22 before the market’s open), the notable reports are fromMcDonald’s (NYSE: MCD Free Report) , Caterpillar (NYSE: CAT Free Report) and GM (NYSE: GM Free Report).

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on GOOGL - FREE

Get the full Report on MCD - FREE

Get the full Report on CAT - FREE

Get the full Report on GM - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339 provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. .

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.

This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Caterpillar, Inc. (CAT): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
To read this article on click here.