For Immediate Release
Chicago, IL – June 12, 2017 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes H&R Block (NYSE:HRB) (NYSE: HRB – Free Report ), Kroger (NYSE: KR – Free Report ), Adobe (NASDAQ: ADBE – Free Report ) and Oracle (NYSE: ORCL – Free Report ).
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Earnings Growth to Continue in Q2
We are in a quiet period in the quarterly earnings reporting cycle, with the March quarter results effectively behind us now and a few weeks still to go before we really get into the heart of the Q2 earnings season. But quiet period or not, earnings reports never really stop, with this week bringing in 21 quarterly reports, including 2 from S&P 500 members. In fact, these 2 S&P 500 members reporting results this week –H&R Block (NYSE: HRB – Free Report ) and Kroger (NYSE: KR – Free Report ) – are officially the last earnings reports of the Q1 earnings season.
We will start the tally for the Q2 earnings season the following week, as companies like Adobe (NASDAQ: ADBE – Free Report ), Oracle (NYSE: ORCL – Free Report ) and others start coming out with results for their May-ending fiscal quarters that form part of our Q2 tally.
Expectations for Q2
Total Q2 earnings are expected to be up +5.7% from the same period last year on +6.5% higher revenues. This would follow +7.4% earnings growth in 2016 Q4 on +3.7% revenue growth, the highest growth pace in all most two years.
Estimates for Q2 came down as the quarter unfolded, with the current +5.7% growth down from +7.9% at the end of March. Please note that while Q2 estimates have followed well traversed path that we have been seeing consistently over the last few years, the magnitude of negative revisions compares favorably to other periods. In other words, Q2 estimates have come down, but they haven’t come down by as much.
Q2 earnings growth expectations contrasted with what is expected in the following three quarters and actual results in the preceding 6 quarters. This growth pace is expected to continue through the rest of the year.
Recap of the Q1 Earnings Season
Total earnings for the 498 S&P 500 members that have reported quarterly results already are up +13.4% from the same period last year on +7.1% higher revenues, with 72.5% beating EPS estimates and 65.5% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 52%.
Comparing Q1 Results
The Q1 growth pace is notably tracking above what we had seen from the same group of 498 index members in other recent periods. Importantly, the growth performance is broad-based and not narrowly concentrated. We got the leadership from the Finance space earlier in the reporting cycle, but the baton has since shifted to Tech and host of other areas, including Industrials, Basic Materials, and Energy.
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H&R Block, Inc. (HRB): Free Stock Analysis Report
Kroger Company (The) (NYSE:KR
Adobe Systems Incorporated (NASDAQ:ADBE
Oracle Corporation (NYSE:ORCL
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