S&P 500 Q1 earning season recap: Higher revenue but decreased earnings

AI was cited with the highest number of S&P 500 companies earnings calls in over 10 years. Revenue growth rate for is 4.1%, which is the lowest YOY revenue growth rate reported by the index since Q4 2020 (3.2%). Earnings decline is -2.1%, which is the second consecutive quarter.

At the sector level, eight sectors are reporting YOY growth in revenues, led by the Utilities and Financials sectors. On the other hand, three are reporting a YOY decline in revenues, led by the Materials sector.

Five sectors are reporting YOY earnings growth, led by the Consumer Discretionary and Industrials sectors. On the other hand, six sectors are reporting a YOY decline in earnings, led by the Materials and Utilities sectors.

In terms of prior estimation, 76% of S&P 500 companies have reported actual revenues above estimates, which is above the 5- year average of 69% and above the 10-year average of 63%. In aggregate, companies are reporting revenues that are 2.5% above the estimates, which is above the 5-year average of 2.0% and above the 10-year average of 1.3%.

Data as of May 26 2023

Source: Factset