Key Metrics
• Earnings Growth: For Q4 2017, the estimated earnings growth rate for the S&P 500 is 10.6%. All eleven sectors are
expected to report earnings growth for the quarter, led by the Energy sector.
• Earnings Revisions: On September 30, the estimated earnings growth rate for Q4 2017 was 11.3%. Seven sectors have
lower growth rates today (compared to September 30) due to downward revisions to earnings estimates, led by the Industrials
sector.
• Earnings Guidance: For Q4 2017, 71 S&P 500 companies have issued negative EPS guidance and 36 S&P 500 companies
have issued positive EPS guidance.
• Valuation: The forward 12-month P/E ratio for the S&P 500 is 18.2. This P/E ratio is above the 5-year average (15.8) and
above the 10-year average (14.2).
• Earnings Scorecard: For Q3 2017 (with 100% of the companies in the S&P 500 reporting actual results for the quarter), 74%
of S&P 500 companies reported positive EPS surprises and 67% reported positive sales surprises. .
