The quarterly 2023 earnings season for the S&P 500 is entering its final stretch, and the results are exceeding expectations.
Companies are reporting their best performance relative to analyst expectations since the fourth quarter of 2021, with both the number of companies reporting positive earnings per share (EPS) surprises and the magnitude of these surprises above their 10-year averages.
Although the S&P 500 is reporting higher earnings for the first quarter today relative to the end of last week and relative to the end of the quarter, the index is still experiencing a year-over-year decline in earnings for the second straight quarter. However, positive earnings surprises reported by companies in multiple sectors, especially the Health Care and Information Technology sectors, have contributed to a decrease in the overall earnings decline for the index since March 31. These results could indicate an optimistic outlook for the US economy's future and the stock market as a whole.
Nearly 85% of S&P 500 companies have reported results from the most recent quarter, with Apple the big name this week.