We are one week into the 3Q23 the earnings reporting season. 64 companies have reported so far, 13% of the SP500 and 30% of those reporting to date have been financials/banks.
The “beat ratio” – the percentage of companies reporting better than expected earnings – is running at 75%. Granted it’s a small sample size so far, but 75% is a solid beat ratio and consistent with our belief that the second quarter represented the trough in reported earnings. TONS of earnings to be reported in the next two weeks – we will update accordingly.
EDSP = earnings drive stock prices
Source: Factset, Bloomberg, Evercore ISI Research as of October 19, 2023
Richard Barrett
Chief Investment Officer
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