The fourth quarter 2018 earnings season continued to pick up steam this week as more than 100 companies reported earnings. Next week things kick into full gear, however, with an estimated 325 companies set to report.
The readings have been strong so far, but with a major caveat. Historically, the earnings beat rate drifts lower as earnings season progresses. The bottom-line earnings per share beat rate now stands at 64.7 percent, which is roughly in line with the final reading seen last quarter - but it's also low for where we are in the reporting period.
On the revenue side, 54.9 percent of companies that have reported this season have beaten consensus revenue estimates. In this category, top-line beats this season are weaker than normal.
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