Tuesday, January 30, 2018

Sales Are Soaring

It's not just stock prices that have been rising: S&P 500 firms are beating analyst estimates for sales at a record rate. With nearly a quarter of companies reporting for the final three months of last year, 81 percent of firms are beating forecasts for revenue growth, according to FactSet.

If that rate holds through the end of earnings season, it would be the highest beat rate in records going back to 2008, the FactSet analysis shows. That rate is well above the 56 percent of companies on average that topped sales estimates over the previous 20 quarters.

In some parts of the economy, the sales numbers are universally strong. In the energy, real, estate, health care, and telecom sectors, every single company that has reported has beaten its sales forecasts so far.

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