EPS Beats and Misses %

In Q2 2022, 75.8% of S&P 500 index constituents surpassed EPS expectations vs. Capital IQ estimates, a 2.2% decrease from Q1. Information Technology led the individual sectors with 87.8% of firms exceeding expectations, followed by Industrials with 83.1%, and Materials and Healthcare with 77.8%. The sectors with the lowest percentage of firms beating EPS estimates were Communication Services (60.9%), Financials (67.7%), and Real Estate (67.7%). Real Estate also appeared in the lowest three sectors in Q1 with 69% but fell even further this quarter, while the other two sectors in that group Consumer Discretionary and Utilities improved to 72.4% and 75% versus 66.7% and 67.9% last quarter, respectively.

EPS Growth %

Year-over-year, the S&P 500 index recorded an EPS growth rate of 10.7% for Q2 2022. The sector with the highest growth was Energy with 297.9%, not surprising given the steep rise in energy prices this year. After Energy, the next highest sectors were Materials and Real Estate with 22.6% and 18.5%, respectively. Three sectors this quarter reported negative year-over-year EPS growth in Q2, Financials with -11.8%, Communication Services with -5.7%, and Health Care with -1.0%.

Revenue Beats and Misses %

71.5% of firms in the S&P 500 beat Capital IQ Estimates for revenue in Q2 2022, down 1% versus Q1. Energy led the pack with all constituents in the sector surpassing revenue estimates. After Energy, the next highest sector was Utilities with 93.1%, up 13.8% from Q1. The next highest sectors were Real Estate with 87.1%, Consumer Staples with 81.8%, and Materials with 78.6%. Information Technology was the highest performing sector in Q1 (87.9%), but we saw them fall towards the middle of the pack this quarter with 76.3%. The lowest performing sectors in Q2 were Financials with 53.8%, Communication Services with 56.5%, and Consumer Discretionary with 56.9%.

YoY Revenue Growth %        

Overall, Q2 2022 revenue for the S&P 500 grew at 11.0% year-over-year, down 2.5% compared to Q1. The Energy sector had the strongest revenue growth with 76.0%, maintaining the top spot from last quarter. The next highest sectors were Utilities with 22.2%, Real Estate with 15.7%, and Materials with 14.7%. Utilities made a strong come back this quarter, as it was the lowest year-over-year revenue growth sector in Q1 (2.5%). The slowest growth sectors this quarter were Information Technology with 5.5%, Financials with 6.3%, and Industrials with 6.5%.