And just as quickly as dismal IBM results were able to drag down tech sector growth, a better-than-expected report out from Apple yesterday was enough to prop the sector up again. Apple (NASDAQ:AAPL) posted fiscal fourth quarter EPS of $1.42, $0.06 higher than the Estimize consensus and an even higher $0.12 above the Wall Street consensus, resulting in YoY profit growth of 20%. Revenues also did considerably well, coming in at $42.1B, $1.6B above the Estimize consensus and $2.2B above the Street’s consensus, growing 12% from fourth quarter 2014. The strong results were able to push IT sector growth up to 5.0% from the 4.7% earlier in the day. Furthermore, overall, the S&P 500 got a boost—up to 9.5% from 9.1%, in part due to Apple’s results as well as increasing estimates for companies that have yet to report this season.
Chipotle Mexican Grill (NYSE:CMG) was another standout among the after-the-bell reports. The fast-casual restaurant chain posted EPS of $4.15, $0.28 higher than the Estimize consensus and $0.29 higher than what the Street was expecting, growing 56% YoY. Revenues of $1.08B were just slightly above expectations. Despite the impressive results, shares of Chipotle fell 2% in after-hours trading, as the chain warned that increased food prices would impact the bottom-line. Higher beef, avocado and dairy prices in particular are expected to contribute to higher food costs for the chain.
Earnings season rolls on later today as we get results from big names such as McDonald's (NYSE:MCD), Verizon (NYSE:VZ), Yahoo! (NASDAQ:YHOO) and Coca-Cola (NYSE:KO), to name a few. There are still 115 companies from the S&P 500 scheduled to report this week.
How Are We Doing?
Expectations for S&P 500 earnings growth for the third quarter stand at 9.5%. Revenues are anticipated to come in with 4.4% growth. All 10 sectors are anticipated to post positive YoY growth on both the earnings and revenue front.
Leaders
Earnings:
- Energy (13.6%). Notable industry: Oil, Gas & Consumable Fuels (14.6%)
- Materials (12.7%). Notable industry: Metals & Mining (23.8%).
- Consumer Discretionary (11.9%). Notable industry: Internet & Catalog Retail (22.5%)
Revenues:
- Health Care (9.9%). Notable industry: Biotech (38.3%).
- Information Technology (6.7%). Notable industry: Internet Software & Services (15.0%)
Laggards
Earnings:
- Utilities (3.0%). Notable industry: MultiUtilities (0.5%).
- Telecommunication Services (4.1%): All five companies are within Diversified Telecom Services. Only Verizon expecting yoy growth.
Revenues:
- Energy (0.8%). Notable industry: Oil, Gas and Consumable Fuels (0.0%).
- Materials (2.3%). Notable industry: Paper & Forest Products (-10.9%).
Beat/Miss/Match
Earnings: 91 companies have reported thus far, 50% have beaten the Estimize consensus, 38% have missed and 12% have met. This is compared to Wall Street estimates, of which 62% of companies have beat on the bottom-line, 30% have missed and 8% have met.
Revenue: 54% have beaten the Estimize consensus, 46% have missed, and 0% have met. For revenues, 63% of companies have beat the Wall Street estimate, while 38% have missed.
