The first-quarter earnings season is off to a softish start by some measures, according to new research, but another quarter of year-on-year growth still looks likely.
Based on preliminary results—just 12% of S&P 500 companies have reported results so far, according to an analysis released late Thursday by FactSet—70% of reporting companies in the benchmark index have come in above Street estimates. That’s below the five- and 10-year averages, FactSet said.
Earnings have come in 6.1% above estimates, also below the five- and 10-year averages, according to FactSet. (The historical numbers are based on actual results for the full past quarters.)
The S&P 500's first-quarter results are still projected to grow for a seventh consecutive quarter, according to FactSet, which said the “blended” earnings growth rate through Thursday—meaning a combination of the results already in and the estimates for those yet to arrive—was 7.2% so far.
Investor attention will likely turn in large part to some Magnificent Seven results due next week— Tesla ( TSLA ) and Google parent Alphabet ( GOOG ) are scheduled to report—but the earnings calendar will be busy with several other companies like Verizon ( VZ ), PepsiCo ( PEP ), Intel ( INTC ) and Boeing ( BA ) also set to announce their own numbers.
Health insurer Elevance ( ELV ) is also on the calendar, its results expected days after UnitedHealth ( UNH ) reported weaker-than-expected results and cut its outlook, sending its stock plunging Thursday . (Yesterday was the last trading day of a holiday-shortened week .)
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