The first-quarter 2017 earnings season is in full swing with reports from 288 S&P 500 companies already out as of Friday, Apr 28. Per the latest Earnings Preview, earnings for the total S&P 500 companies are expected to improve 11.2% from the year-ago period, with total revenue anticipated to rise 6.2%.
Per the report, out of the 288 S&P 500 companies that have come up with their quarterly numbers, approximately 76.4% posted positive earnings surprises, while 68.1% outperformed top-line expectations. Total earnings for these index members were up 13.7% from the year-ago quarter, while revenues increased 8.2%.
In fact, the performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, three are expected to witness an earnings decline. Of these, Autos and Transportation are likely to be the major drags.
Per the report, the earnings growth for the Consumer Staples sector looks decent. While total first-quarter earnings for the sector are estimated to rise 4.3%, revenues are projected to improve 4.0%. However, the sector is currently placed at bottom 38% of the Zacks Classified sectors (10 out of 16).
As of Apr 28, 40.6% of the total number of the S&P 500 companies in the Consumer Staples sector has reported their results. Out of these, 76.9% companies posted an earnings beat, while 23.1% surpassed revenue estimates.
So, let’s see what awaits the following Consumer Staples stocks that are queued up for earnings releases on May 2.
Altria Group, Inc. MO is slated to report first-quarter 2017 results before the opening bell. Notably, its earnings have outpaced the Zacks Consensus Estimate in all the trailing four quarters, with an average of 2.5%.
Our proven model conclusively shows earnings beat for Altria this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Altria Group Price, Consensus and EPS Surprise
Altria Group Price, Consensus and EPS Surprise | Altria Group Quote
Altria has an Earnings ESP of +1.35%. This is because the Most Accurate estimate of 75 cents is pegged higher than the Zacks Consensus Estimate of 74 cents. Moreover, the company’s Zacks Rank #3 increases the predictive power of ESP, thus making us confident of earnings beat.
Altria has been reporting upbeat earnings results since the last four consecutive quarters, on the back of company’s strong brand portfolio, shift to low-risk, smokeless tobacco products and strong pricing. The company’s flagship brand Marlboro has also been performing well, which gave a boost to its market share. (Read more: Is Altria Group Poised for a Beat This Earnings Season?)
Next, let’s take a sneak peek at Spectrum Brands Holdings, Inc. SPB, which is slated to report second-quarter fiscal 2017 results. Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters by an average of 8.9%.
Spectrum Brands has an Earnings ESP of +0.79%. This is because the Most Accurate estimate of $1.27 is pegged above the Zacks Consensus Estimate of $1.26. Moreover, the company’s Zacks Rank #3 increases the predictive power of ESP, thus making us confident of earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.