United States: First quarter financial report review
2024-05-15
■ Expected to exceed market expectations for earnings per share (EPS) growth, overall considered good financial report content
■ Pay attention to the market's response to the upcoming financial reports of semiconductor giants
As of the 10th, 459 companies in the S&P 500 index have completed the disclosure of their first-quarter financial reports. According to financial information company LSEG I/B/E/S data, 77% of companies have announced earnings per share (EPS) higher than market expectations. It is expected that the EPS for the first quarter will increase by 7.4% compared to the same period last year (actual data of disclosed companies, market expectations of undisclosed companies), which exceeds the market's expected growth rate in early April (a year-on-year increase of 5.1%). Therefore, the overall financial report of significant companies is evaluated as good. By department, the EPS growth rate of high-tech giants such as communication services (growth of 43.1%), general consumer goods (growth of 26.6%), and information technology (IT, growth of 23.8%) in their industry sectors is still relatively high. Looking ahead, the expected EPS from early April to the present includes the April-June quarter (growth of 10.4% → 10.6%), July-September quarter (growth of 8.6% → 8.5%), etc. The previous expectations remain unchanged, and an upward adjustment for 2024 (growth from 9.9% to 10.4%) has been made. The performance expectations of high-tech companies such as semiconductors are relatively cautious, and people are concerned about whether the market's EPS expectations will be lowered.
The expected price-to-earnings ratio (PER) of the S&P 500 index is 20.6 times; although it has decreased from late March (21.1 times), it is still higher than the average level since 2018 (18.7 times), which makes stock prices appear higher than expected corporate performance. In this situation, the profit growth expectations of high-tech giants in industries such as information technology, communication services, and general consumer goods that benefit from the expansion of demand related to artificial intelligence (AI) are becoming cautious, failing to meet market expectations, and stock prices are occasionally weakening. The reasonableness of the stock price level will be confirmed after each financial report disclosure, and the stock price is expected to fluctuate within a box range in the short term. The financial report of the US semiconductor giant released on the 22nd may become an overall indicator of market activity and is worth paying special attention to.
■ Pay attention to the market's response to the upcoming financial reports of semiconductor giants
As of the 10th, 459 companies in the S&P 500 index have completed the disclosure of their first-quarter financial reports. According to financial information company LSEG I/B/E/S data, 77% of companies have announced earnings per share (EPS) higher than market expectations. It is expected that the EPS for the first quarter will increase by 7.4% compared to the same period last year (actual data of disclosed companies, market expectations of undisclosed companies), which exceeds the market's expected growth rate in early April (a year-on-year increase of 5.1%). Therefore, the overall financial report of significant companies is evaluated as good. By department, the EPS growth rate of high-tech giants such as communication services (growth of 43.1%), general consumer goods (growth of 26.6%), and information technology (IT, growth of 23.8%) in their industry sectors is still relatively high. Looking ahead, the expected EPS from early April to the present includes the April-June quarter (growth of 10.4% → 10.6%), July-September quarter (growth of 8.6% → 8.5%), etc. The previous expectations remain unchanged, and an upward adjustment for 2024 (growth from 9.9% to 10.4%) has been made. The performance expectations of high-tech companies such as semiconductors are relatively cautious, and people are concerned about whether the market's EPS expectations will be lowered.
The expected price-to-earnings ratio (PER) of the S&P 500 index is 20.6 times; although it has decreased from late March (21.1 times), it is still higher than the average level since 2018 (18.7 times), which makes stock prices appear higher than expected corporate performance. In this situation, the profit growth expectations of high-tech giants in industries such as information technology, communication services, and general consumer goods that benefit from the expansion of demand related to artificial intelligence (AI) are becoming cautious, failing to meet market expectations, and stock prices are occasionally weakening. The reasonableness of the stock price level will be confirmed after each financial report disclosure, and the stock price is expected to fluctuate within a box range in the short term. The financial report of the US semiconductor giant released on the 22nd may become an overall indicator of market activity and is worth paying special attention to.