EARNINGS INSIGHTJohn Butters

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VP, Senior Earnings Analyst

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jbutters@factset.com

May 10, 2024

Key Metrics
 Earnings Scorecard: For Q1 2024 (with 92% of S&P 500 companies reporting actual results), 78% of S&P 500
companies have reported a positive EPS surprise and 59% of S&P 500 companies have reported a positive revenue
surprise.
 Earnings Growth: For Q1 2024, the blended (year-over-year) earnings growth rate for the S&P 500 is 5.4%. If
5.4% is the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reportedby the index since Q2 2022 (5.8%).
 Earnings Revisions: On March 31, the estimated (year-over-year) earnings growth rate for the S&P 500 for Q1
2024 was 3.4%. Ten sectors are reporting (or have reported) higher earnings today (compared to March 31) due topositive EPS surprises.
 Earnings Guidance: For Q2 2024, 51 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 20.4. This P/E ratio is above the 5-year average(19.1) and above the 10-year average (17.8).

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EARNINGS INSIGHT
Table of Contents
Commentary
Key Metrics

1

Table of Contents

2

Topic of the Week

3

Overview

5

Earnings & Revenue Scorecard

6

Earnings Revisions

7

Earnings Growth8

Revenue Growth

10

Net Profit Margin

11

Forward Estimates & Valuation

12

Charts
Q124 Earnings & Revenue Scorecard

14

Q124 Earnings & Revenue Surprises

15

Q124 Earnings & Revenue Growth18

Q124 Net Profit Margin

20

Q224 EPS Guidance21

Q224 EPS Revisions

22

Q224 Earnings & Revenue Growth23

FY24 / FY25 EPS Guidance

24

CY24 Earnings & Revenue Growth25

CY25 Earnings & Revenue Growth26

Geographic Revenue Exposure

27

Bottom-Up EPS Estimates

28

Forward 12-Month P/E Ratio

30

Trailing 12-Month P/E Ratio

31

Target & Ratings

33

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EARNINGS INSIGHT
Topic of the Week
Excluding Bristol Myers Squibb, S&P 500 Would Be Reporting Earnings Growth Above 8% for Q1
The blended (combines actual and estimated results) year-over-year earnings growth rate for the S&P 500 for Q1 2024 is
5.4%. If 5.4% is the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reportedby the index since Q2 2022 (5.8%).
As previously noted (https://insight.factset.com/are-the-magnificent-7-the-top-contributors-to-earnings-growth-for-the-sp500-for-q1), the top five contributors to earnings growth for the index for Q1 are “Magnificent 7” companies: NVIDIA,
Alphabet, Amazon.com, Meta Platforms, and Microsoft. Excluding these five companies, the S&P 500 would be reportinga year-over-year earnings decline of -2.4% rather than earnings growth of 5.4% for Q1.
On the other hand, which company is the largest detractor to earnings growth for the S&P 500 for Q1 2024?
Bristol Myers Squibb is the largest detractor to earnings growth for the S&P 500 for the first quarter. On April 25, thecompany reported (non-GAAP) EPS of -$4.40 for Q1 2024 compared to (non-GAAP) EPS of $2.05 for Q1 2023. The nonGAAP EPS number for Q1 2024 included a net impact of -$6.30 due to “Acquired IPRD charges and licensing income
primarily driven by the Karuna Therapeutics asset acquisition and Systlmmune collaboration.” On a dollar-level basis, thecompany reported a year-over-year decline in (non-GAAP) earnings of more than $13 billion. If Bristol Myers Squibb were
excluded, the blended earnings growth rate for the S&P 500 for Q1 2024 would improve to 8.3% from 5.4%.
Bristol Myers Squibb is a company in the Health Care sector. This sector is reporting a year-over-year decline in earningsof -25.4% for Q1 2024. Other companies in the Health Care sector that are significant detractors to (year-over-year)
earnings growth for the S&P 500 for Q1 2024 are Gilead Sciences (-$1.32 vs. $1.37) and Pfizer ($0.82 vs. $1.23). If Bristol
Myers Squibb, Gilead Sciences, and Pfizer were excluded, the blended earnings growth rate for the S&P 500 would
improve to 9.7% from 5.4%.

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Q1 Earnings Season: By The Numbers
Overview
At this late stage of the Q1 earnings season, S&P 500 companies continue to perform well compared to expectations. Boththe percentage of S&P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises areabove their 10-year averages. As a result, the index is reporting higher earnings for the first quarter today relative to theend of the quarter. On a year-over-year basis, the S&P 500 is reporting its highest earnings growth rate since Q2 2022.
Overall, 92% of the companies in the S&P 500 have reported actual results for Q1 2024 to date. Of these companies, 78%
have reported actual EPS above estimates, which is above the 5-year average of 77% and above the 10-year average of
74%. In aggregate, companies are reporting earnings that are 7.5% above estimates, which is below the 5-year averageof 8.5% but above the 10-year average of 6.7%. Historical averages reflect actual results from all 500 companies, not theactual results from the percentage of companies that have reported through this point in time.
Since March 31, positive earnings surprises reported by companies in the Communication Services, Financials, Consumer
Discretionary, and Information Technology sectors, partially offset by downward revisions to EPS estimates for two
companies in the Health Care sector, have been the largest contributors to the increase in the earnings growth rate for theindex during this period.
As a result, the index is reporting higher earnings for the first quarter today relative to the end of the quarter. The blended(combines actual results for companies that have reported and estimated results for companies that have yet to report)
earnings growth rate for the first quarter is 5.4% today, compared to an earnings growth rate of 3.4% at the end of the firstquarter (March 31).
If 5.4% is the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reported by
the index since Q2 2022 (5.8%).
Eight of the eleven sectors are reporting (or have reported) year-over-year earnings growth, led by the Communication
Services, Utilities, Consumer Discretionary, and Information Technology sectors. On the other hand, three sectors arereporting (or have reported) a year-over-year decline in earnings: Energy, Health Care, and Materials.
In terms of revenues, 59% of S&P 500 companies have reported actual revenues above estimates, which is below the 5year average of 69% and below the 10-year average of 64%. In aggregate, companies are reporting revenues that are
0.8% above the estimates, which is also below the 5-year average of 2.0% and below the 10-year average of 1.4%. Again,
historical averages reflect actual results from all 500 companies, not the actual results from the percentage of companies
that have reported through this point in time.
Since March 31, positive revenue surprises reported by companies in the Financials sector have been the largest
contributor to the increase in the revenue growth rate for the index during this period.
As a result, the index is reporting higher revenues for the first quarter today relative to the end of the quarter. The blended
revenue growth rate for the first quarter is 4.1% today, compared to a revenue growth rate of 3.5% at the end of the firstquarter (March 31).
If 4.1% is the actual revenue growth rate for the quarter, it will mark the 14 th consecutive quarter of revenue growth for theindex.
Eight sectors are reporting (or have reported) year-over-year growth in revenues, led by the Communication Services andInformation Technology sectors. On the other hand, three sectors reported a year-over-year decline in revenues, led by
the Utilities sector.
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Looking ahead, analysts expect (year-over-year) earnings growth rates of 9.3%, 8.4%, and 17.4% for Q2 2024, Q3 2024,
and Q4 2024, respectively. For CY 2024, analysts are calling for (year-over-year) earnings growth of 11.1%.
The forward 12-month P/E ratio is 20.4, which is above the 5-year average (19.1) and above the 10-year average (17.8).
However, it is below the forward P/E ratio of 21.0 recorded at the end of the first quarter (March 31).
During the upcoming week, 7 S&P 500 companies (including 3 Dow 30 components) are scheduled to report results forthe first quarter.

Scorecard: Number & Magnitude of Positive EPS Surprises Are Above 10-Year Averages
Percentage of Companies Beating EPS Estimates (78%) is Above 5-Year Average
Overall, 92% of the companies in the S&P 500 have reported earnings to date for the first quarter. Of these companies,
78% have reported actual EPS above the mean EPS estimate, 7% have reported actual EPS equal to the mean EPS
estimate, and 16% have reported actual EPS below the mean EPS estimate. The percentage of companies reporting EPS
above the mean EPS estimate is equal to the 1-year average (78%), above the 5-year average (77%), and above the 10year average (74%). Historical averages reflect actual results from all 500 companies, not the actual results from thepercentage of companies that have reported through this point in time.
At the sector level, the Health Care (87%), Information Technology (86%), and Consumer Staples (86%) sectors have thehighest percentages of companies reporting earnings above estimates, while the Energy (61%) sector has the lowest
percentage of companies reporting earnings above estimates.

Earnings Surprise Percentage (+7.5%) is Below 5-Year Average
In aggregate, companies are reporting earnings that are 7.5% above expectations. This surprise percentage is above the1-year average (+6.4%), below the 5-year average (+8.5%), and above the 10-year average (+6.7%). Historical averages
reflect actual results from all 500 companies, not the actual results from the percentage of companies that have reported
through this point in time.
The Consumer Discretionary (+13.4%) sector is reporting the largest positive (aggregate) difference between actual
earnings and estimated earnings. Within this sector, Hasbro ($0.61 vs. $0.27), Airbnb ($0.41 vs. $0.23), Booking Holdings($20.39 vs. $13.98), Norwegian Cruise Line Holdings ($0.16 vs. $0.11), and Garmin ($1.42 vs. $1.01) have reported thelargest positive EPS surprises.
The Communication Services (+12.5%) sector is reporting the second-largest positive (aggregate) difference between
actual earnings and estimated earnings. Within this sector, Paramount Global ($0.62 vs. $0.26), Alphabet ($1.89 vs. $1.51),
and Netflix ($5.28 vs. $4.52) have reported the largest positive EPS surprises.
The Utilities (+10.5%) sector reported the third-largest positive (aggregate) difference between actual earnings andestimated earnings. Within this sector, Pinnacle West Corporation ($0.15 vs. -$0.02), NRG Energy ($3.40 vs. $0.66), AES
Corporation ($0.50 vs. $0.34), and Constellation Energy ($1.82 vs. $1.30) reported the largest positive EPS surprises.
The Health Care (+9.3%) sector is reporting the fourth-largest positive (aggregate) difference between actual earnings andestimated earnings. Within this sector, Illumina ($0.09 vs. $0.04), Insulet Corporation ($0.73 vs. $0.40) and Pfizer ($0.82
vs. $0.52) have reported the largest positive EPS surprises.

Market Punishing Negative EPS Surprises More Than Average
To date, the market is rewarding positive earnings surprises reported by S&P 500 companies slightly less than average
while punishing negative earnings surprises reported by S&P 500 companies more than average.

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Companies that have reported positive earnings surprises for Q1 2024 have seen an average price increase of +0.9% twodays before the earnings release through two days after the earnings release. This percentage increase is smaller than
the 5-year average price increase of +1.0% during this same window for companies reporting positive earnings surprises.
Companies that have reported negative earnings surprises for Q1 2024 have seen an average price decrease of -2.8%
two days before the earnings release through two days after the earnings. This percentage decrease is larger than the 5year average price decrease of -2.3% during this same window for companies reporting negative earnings surprises.

Percentage of Companies Beating Revenue Estimates (59%) is Below 5-Year Average
In terms of revenues, 59% of companies have reported actual revenues above estimated revenues and 41% have reported
actual revenues below estimated revenues. The percentage of companies reporting revenues above estimates is below
the 1-year average (67%), below the 5-year average (69%), and below the 10-year average (64%). Historical averages
reflect actual results from all 500 companies, not the actual results from the percentage of companies that have reported
through this point in time.
At the sector level, the Real Estate (71%) and Health Care (70%) sectors have the highest percentages of companies
reporting revenues above estimates, while the Utilities (29%) sector has the lowest percentage of companies reporting
revenues above estimates.

Revenue Surprise Percentage (+0.8%) is Below 5-Year Average
In aggregate, companies are reporting revenues that are 0.8% above expectations. This surprise percentage is below the1-year average (+1.4%), below the 5-year average (+2.0%), and below the 10-year average (+1.4%). Historical averages
reflect actual results from all 500 companies, not the actual results from the percentage of companies that have reported
through this point in time.
At the sector level, the Financials (+3.7%) sector reported the largest positive (aggregate) difference between actual
revenues and estimated revenues, while the Utilities (-5.6%) sector reported the largest negative (aggregate) differences
between actual revenues and estimated revenues.

Revisions: Communication Services Sector Has Seen Largest Increase in Earnings since March 31
Communication Services Sector Has Seen Largest Increase in Earnings since March 31
The blended (year-over-year) earnings growth rate for Q1 2024 of 5.4% is above the estimate of 3.4% at the end of thefirst quarter (March 31). Ten sectors have recorded an increase in their earnings growth rate or a decrease in their earnings
decline since the end of the quarter due to upward revisions to earnings estimates and positive earnings surprises, led by
the Communication Services (to 34.1% from 19.2%), Utilities (to 33.4% from 24.2%), and Consumer Discretionary (to24.4% from 16.3%) sectors. The Communication Services, Financials, Consumer Discretionary, and Information
Technology sectors have been the largest contributors to the increase in earnings for the index since March 31. On theother hand, the Health Care (to -25.4% from -7.1%) sector is the only sector that has recorded a decrease in its earnings
growth rate or an increase in its earnings decline since the end of the quarter due to downward revisions to EPS estimatesor negative earnings surprises. The Health Care sector has also been the largest detractor to the increase in earnings forthe index since March 31.
In the Communication Services sector, the positive EPS surprises reported by Alphabet ($1.89 vs. $1.51) and Meta
Platforms ($4.71 vs. $4.32) have been substantial contributors to the increase earnings for the index since March 31. As
a result, the blended earnings growth rate for the Communication Services sector has improved to 34.1% from 19.2% overthis period.

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In the Financials sector, the positive EPS surprises reported by Berkshire Hathaway ($5.19 vs. $4.47), Goldman Sachs($11.58 vs. $8.73), JPMorgan Chase ($4.44 vs. $4.17), and Morgan Stanley ($2.02 vs. $1.67) have been significant
contributors to the increase in earnings for the index since March 31. As a result, the blended earnings growth rate for the
Financials sector has improved to 7.7% from 1.7% over this period.
In the Consumer Discretionary sector, the positive EPS surprises reported by Amazon.com ($0.98 vs. $0.84) and General
Motors ($2.62 vs. $2.13) have been substantial contributors to the increase in earnings for the index since March 31. As aresult, the blended earnings growth rate for the Consumer Discretionary sector improved to 24.4% from 16.3% over thisperiod.
In the Information Technology sector, the positive EPS surprise reported by Microsoft ($2.94 vs. $2.82) has been asignificant contributor to the increase in earnings for the index since March 31. As a result, the blended earnings growthrate for the Information Technology sector improved to 23.2% from 20.4% over this period.
In the Health Care sector, downward revisions to EPS estimates for Bristol Myers Squibb and Gilead Sciences have been
the largest detractors to the increase in the earnings growth rate for the index since March 31. During the week of April 8,
the majority of analysts covering Bristol Myers Squibb lowered their non-GAAP EPS estimates to reflect IPR&D charges
related to the acquisition of Karuna Therapeutics. As a result, the mean EPS estimate for Bristol Myers Squibb for Q1
dropped to -$4.41 from $1.60 (on April 5). The company reported actual EPS of -$4.40. During the week of April 15, themajority of analysts covering Gilead Sciences lowered their non-GAAP EPS estimates to reflect the acquisition of
CymaBay. As a result, the mean EPS estimate for Gilead Sciences for Q1 dropped to -$1.49 from $1.58 (on April 12). The
company reported actual EPS of -$1.32. Mainly due to the decrease in the mean EPS estimates for Bristol Myers Squibb
and Gilead Sciences, the blended earnings decline for the Health Care sector has increased to -25.4% from -7.1% overthis period.

Financials Sector Has Seen Largest Increase in Revenues since March 31
The blended (year-over-year) revenue growth rate for Q1 2024 of 4.1% is above the estimate of 3.5% at the end of the firstquarter (March 31). Seven sectors have recorded an increase in their revenue growth rate or a decrease in their revenue
decline since the end of the quarter due to upward revisions to revenue estimates and positive revenue surprises, led by
the Financials (to 7.2% from 3.2%) sector. The Financials sectors has also been the largest contributor to the increase inrevenues for the index since the end of the quarter. On the other hand, three sectors have recorded a decrease in theirrevenue growth rate or an increase in their revenue decline since the end of the quarter due to downward revisions torevenue estimates and negative revenue surprises, led by the Utilities (to -8.0% from -3.3%) sectors. One sector(Consumer Staples) has the same revenue growth rate today (2.1%) compared to March 31.
In the Financials sector, the positive revenue surprises reported by Prudential ($18.05 billion vs. $14.50 billion), Berkshire
Hathaway ($89.89 billion vs. $87.04 billion), Progressive ($18.96 billion vs. $17.00 billion), Aflac ($5.44 billion vs. $4.14
billion), Goldman Sachs ($14.21 billion vs. $12.94 billion), and Synchrony Financial ($4.80 billion vs. $3.89 billion) havebeen substantial contributors to the increase in revenues for the index since March 31. As a result, the blended revenue
growth rate for the Financials sector has increased to 7.2% from 3.2% over this period.

Earnings Growth: 5.4%
The blended (combines actual results for companies that have reported and estimated results for companies that have yet
to report), year-over-year earnings growth rate for Q1 2024 is 5.4%, which is below the 5-year average earnings growthrate of 9.1% and below the 10-year average earnings growth rate of 8.3%. If 5.4% is the actual growth rate for the quarter,
it will mark the highest year-over-year earnings growth rate reported by the index since Q2 2022 (5.8%).

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Eight of the eleven sectors are reporting (or have reported) year-over-year earnings growth, led by the Communication
Services, Utilities, Consumer Discretionary, and Information Technology sectors. On the other hand, three sectors arereporting (or have reported) a year-over-year decline in earnings: Energy, Health Care, and Materials sectors.

Communication Services: Alphabet and Meta Platforms Lead Year-Over-Year Growth
The Communication Services sector is reporting the highest (year-over-year) earnings growth rate of all eleven sectors at
34.1%. At the industry level, 3 of the 5 industries in the sector reported year-over-year earnings growth. All three of theseindustries reported double-digit growth: Interactive Media & Services (70%), Wireless Telecommunication Services (22%),and Media (12%). On the other hand, two industries are reporting (or have reported) a year-over-year decline in earnings:
Diversified Telecommunication Services (-6%) and Entertainment (-5%).
At the company level, Alphabet ($1.89 vs. $1.17) and Meta Platforms ($4.71 vs. $2.20) are the largest contributors toearnings growth for the sector. If these two companies were excluded, the blended (year-over-year) earnings growth rate
for the Communication Services sector would fall to 1.7% from 34.1%.

Utilities: Electric Utilities Industry Was Largest Contributor to Year-Over-Year Growth
The Utilities sector reported the second-highest (year-over-year) earnings growth rate of all eleven sectors at 33.4%. At
the industry level, 4 of 5 industries in this sector reported year-over-year earnings growth. Three of these four industries
reported double-digit growth: Independent Power and Renewable Electricity Producers (142%), Electric Utilities (58%),
and Gas Utilities (21%). The Multi-Utilities industry (less than -1%) is the only industry that reported a year-over-year
decline in earnings.
At the industry level, the Electric Utilities industry was the largest contributor to earnings growth for the sector. If thisindustry were excluded, the blended (year-over-year) earnings growth rate for the Utilities sector would fall to 4.9% from
33.4%.

Consumer Discretionary: Amazon.com Is Largest Contributor to Year-Over-Year Growth
The Consumer Discretionary sector is reporting the third-highest (year-over-year) earnings growth rate of all eleven sectors
at 24.4%. At the industry level, 6 of the 9 industries in the sector are reporting (or have reported) year-over-year earnings
growth. All six industries are reporting (or have reported) double-digit growth: Leisure Products (6,025%), Broadline Retail(183%), Hotels, Restaurants, & Leisure (48%), Household Durables (23%), Automobile Components (17%), and Textiles,
Apparel, & Luxury Goods (12%). On the other hand, three industries are reporting (or have reported) a year-over-year
decline in earnings. Two of these three industries reported a double-digit decrease: Automobiles (-23%) and Distributors(-11%).
At the company level, Amazon.com ($0.98 vs. $0.31) is the largest contributor to earnings growth for the sector. If thiscompany were excluded, the blended (year-over-year) earnings growth rate for the Consumer Discretionary sector would
fall to 2.3% from 24.4%.

Information Technology: NVIDA Is Largest Contributor to Year-Over-Year Growth
The Information Technology sector is reporting the fourth-highest (year-over-year) earnings growth rate of all elevensectors at 23.2%. At the industry level, 4 of the 6 industries in the sector are reporting (or have reported) year-over-year
earnings growth. Three of these four industries are reporting (or have reported) double-digit growth: Semiconductors &Semiconductor Equipment (78%), Software (19%), and IT Services (12%). On the other hand, two industries are reportinga year-over-year decline in earnings: Communications Equipment (-10%) and Electronic Equipment, Instruments, &Components (-6%).

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At the company level, NVIDIA ($5.57 vs. $1.09) is the largest contributor to earnings growth for the sector. If this company
were excluded, the blended (year-over-year) earnings growth rate for the Information Technology sector would fall to 10.5%
from 23.2%.
NVIDIA is also the largest contributor to earnings growth for the entire S&P 500. If this company were excluded, the blended
earnings growth rate for the index would fall to 3.0% from 5.4%

Energy: 2 of 5 Sub-Industries Reported Year-Over-Year Decline of 25% or More
The Energy sector (along with the Health Care sector) reported the largest (year-over-year) earnings decline of all elevensectors at -25.4%. At the sub-industry level, four of the five sub-industries in the sector reported a year-over-year decreasein earnings: Oil & Gas Refining & Marketing (-61%), Integrated Oil & Gas (-27%), Oil & Gas Exploration & Production(-9%), and Oil & Gas Storage & Transportation (-1%). On the other hand, the Oil & Gas Equipment & Services (19%) subindustry is the only sub-industry in the sector that reported year-over-year earnings growth.

Health Care: Bristol Myers Squibb Is Largest Contributor to Year-Over-Year Decline
The Health Care sector (along with the Energy sector) is reporting the largest (year-over-year) earnings decline of alleleven sectors at -25.4%. At the industry level, 4 of the 5 industries in the sector are reporting (or have reported) a yearover-year decline in earnings. Two of these four industries reported a double-digit decrease: Pharmaceuticals (-54%) andBiotechnology (-41%). On the other hand, the Health Care Equipment & Supplies (6%) industry is the only industry
reporting year-over-year growth in earnings.
At the company level, Bristol Myers Squibb (-$4.40 vs. $2.05) is the largest contributor to the earnings decline for thesector. If this company were excluded, the blended (year-over-year) earnings decline for the Health Care sector would
improve to -6.9% from -25.4%.
Bristol Myers Squibb is also the largest detractor to earnings growth for the entire S&P 500. If this company were excluded,
the blended earnings growth rate for the index would improve to 8.3% from 5.4%.

Materials: All 4 Industries Reported Year-Over-Year Decline of More Than 10%
The Materials sector reported the second-largest (year-over-year) earnings decline of all eleven sectors at -20.6%. At theindustry level, all four industries in this sector reported a year-over-year decline in earnings of more than 10%: Chemicals(-24%), Containers & Packaging (-19%), Construction Materials (-14%), and Metals & Mining (-13%).

Revenue Growth: 4.1%
The blended (year-over-year) revenue growth rate for Q1 2024 is 4.1%, which is below the 5-year average revenue growthrate of 6.7% and below the 10-year average revenue growth rate of 5.1%. If 4.1% is the actual revenue growth rate for thequarter, it will mark the 14th consecutive quarter of revenue growth for the index.
At the sector level, eight sectors are reporting (or have reported) year-over-year growth in revenues, led by theCommunication Services and Information Technology sectors. On the other hand, three sectors reported a year-over-year
decline in revenues, led by the Utilities sector.

Communication Services: 2 of 5 Industries Reporting Year-Over-Year Growth
The Communication Services sector is reporting the highest (year-over-year) revenue growth rate of all eleven sectors at
8.2%. At the industry level, two of the five industries in this sector are reporting (or have reported) year-over-year growth
in revenues. However, the Interactive Media & Services (17%) industry is the only industry that reported double-digit
growth. On the other hand, the other three industries in the sector reported year-over-year declines in revenue of less than1%.
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Information Technology: 3 of 6 Industries Reporting Year-Over-Year Growth
The Information Technology sector is reporting the second-highest (year-over-year) revenue growth rate of all elevensectors at 7.5%. At the industry level, 3 of the 6 industries in the sector are reporting (or have reported) year-over-year
revenue growth. Two of these three industries are reporting double-digit growth: Semiconductors & Semiconductor
Equipment (27%) and Software (14%). On the other hand, 3 industries are reporting a year-over-year decline in revenues,
led by the Communications Equipment (-9%) and Electronic Equipment, Instruments, & Components (-7%) industries.

Utilities: 4 of 5 Industries Reported Year-Over-Year Decline
The Utilities sector reported the largest (year-over-year) revenue decline of all eleven sectors at -8.0%. At the industry
level, 4 of 5 industries in this sector reported a year-over-year decline in revenues. However, the Multi-Utilities (-18%)
industry is the only industry that reported a double-digit decline. On the other hand, the Water Utilities (8%) industry is the
only industry that reported year-over-year growth in revenues.

Net Profit Margin: 11.7%
The blended net profit margin for the S&P 500 for Q1 2024 is 11.7%, which is above the previous quarter’s net profit marginof 11.2%, above the 5-year average of 11.5%, and above the year-ago net profit margin of 11.6%.
At the sector level, seven sectors are reporting (or have reported) a year-over-year increase in their net profit margins in
Q1 2024 compared to Q1 2023, led by the Utilities (14.9% vs. 10.3%), Information Technology (25.6% vs. 22.4%), andCommunication Services (13.5% vs. 10.9%) sectors. On the other hand, three sectors are reporting (or have reported) a
year-over-year decrease in their net profit margins in Q1 2024 compared to Q1 2023: Energy (9.7% vs. 12.5%), HealthCare (6.5% vs. 9.3%), and Materials (9.4% vs. 11.2%) sectors. One sector (Consumer Staples) is reporting no change innet profit margin (6.1%) for Q1 2024 compared to Q1 2023.
Eight sectors are reporting (or have reported) net profit margins in Q1 2024 that are above their 5-year averages, led by
the Information Technology (25.6% vs. 23.4%) and Communication Services (13.5% vs. 11.5%) sectors. On the other
hand, three sectors are reporting (or have reported) net profit margins in Q1 2024 that are below their 5-year averages,
led by the Health Care (6.5% vs. 10.0%) and Materials (9.4% vs. 10.9%) sectors.

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Forward Estimates and Valuation
Quarterly Guidance: % of S&P 500 Companies Issuing Negative Guidance for Q2 Equals 5-Year Average
At this point in time, 87 companies in the index have issued EPS guidance for Q2 2024. Of these 87 companies, 51 haveissued negative EPS guidance and 36 have issued positive EPS guidance. The percentage of companies issuing negative
EPS guidance for Q2 2024 is 59% (51 out of 87), which is equal to the 5-year average of 59% and below the 10-year
average of 63%.
At this point in time, 269 companies in the index have issued EPS guidance for the current fiscal year (FY 2024 or FY2025). Of these 269 companies, 129 have issued negative EPS guidance and 140 have issued positive EPS guidance.
The percentage of companies issuing negative EPS guidance is 48% (129 out of 269).
The term “guidance” (or “preannouncement”) is defined as a projection or estimate for EPS provided by a company inadvance of the company reporting actual results. Guidance is classified as negative if the estimate (or mid-point of a range
estimates) provided by a company is lower than the mean EPS estimate the day before the guidance was issued. Guidanceis classified as positive if the estimate (or mid-point of a range of estimates) provided by the company is higher than themean EPS estimate the day before the guidance was issued.

Earnings: S&P 500 Expected to Report Earnings Growth of 11% for CY 2024
For the first quarter, S&P 500 companies are reporting year-over-year growth in earnings of 5.4% and year-over-year
growth in revenues of 4.1%.
For Q2 2024, analysts are projecting earnings growth of 9.3% and revenue growth of 4.6%.
For Q3 2024, analysts are projecting earnings growth of 8.4% and revenue growth of 4.9%.
For Q4 2024, analysts are projecting earnings growth of 17.4% and revenue growth of 5.4%.
For CY 2024, analysts are projecting earnings growth of 11.1% and revenue growth of 5.0%.
For CY 2025, analysts are projecting earnings growth of 14.0% and revenue growth of 5.8%.

Valuation: Forward P/E Ratio is 20.4, Above the 10-Year Average (17.8)
The forward 12-month P/E ratio for the S&P 500 is 20.4. This P/E ratio is above the 5-year average of 19.1 and above the10-year average of 17.8. However, it is below the forward 12-month P/E ratio of 21.0 recorded at the end of the first quarter(March 31). Since the end of the first quarter (March 31), the price of the index has decreased by 0.8%, while the forward
12-month EPS estimate has increased by 1.9%. At the sector level, the Information Technology (27.5) and Consumer
Discretionary (24.4) sectors have the highest forward 12-month P/E ratios, while the Energy (12.5) sector has the lowest
forward 12-month P/E ratio.
The trailing 12-month P/E ratio is 25.7, which is above the 5-year average of 23.2 and above the 10-year average of 21.3.

Targets & Ratings: Analysts Project 11% Increase in Price Over Next 12 Months
The bottom-up target price for the S&P 500 is 5784.13, which is 10.9% above the closing price of 5214.08. At the sector
level, the Information Technology (+13.9%) and Communication Services (+13.4%) sectors are expected to see the largest
price increases, as these sectors have the largest upside differences between the bottom-up target price and the closing
price. On the other hand, the Utilities (+0.4%) sector is expected to see the smallest price increase, as this sector has thesmallest upside difference between the bottom-up target price and the closing price.

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Overall, there are 11,694 ratings on stocks in the S&P 500. Of these 11,694 ratings, 54.3% are Buy ratings, 40.5% are
Hold ratings, and 5.3% are Sell ratings. At the sector level, the Communication Services (65%) and Energy (62%) sectors
have the highest percentages of Buy ratings, while the Consumer Staples (45%) and Materials (46%) sectors have thelowest percentages of Buy ratings.

Companies Reporting Next Week: 7
During the upcoming week, 7 S&P 500 companies (including 3 Dow 30 components) are scheduled to report results forthe first quarter.

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Q1 2024: Scorecard

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Q1 2024: Surprise

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Q1 2024: Surprise

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Q1 2024: Surprise

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Q1 2024: Growth

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Q1 2024: Growth

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Q1 2024: Net Profit Margin

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Q2 2024: Guidance

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Q2 2024: EPS Revisions

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Q2 2024: Growth

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FY 2024 / 2025: EPS Guidance

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CY 2024: Growth

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CY 2025: Growth

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Geographic Revenue Exposure

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Bottom-Up EPS Estimates

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Bottom-Up EPS Estimates: Current & Historical

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Forward 12M P/E Ratio: Sector Level

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Forward 12M P/E Ratio: 10-Years

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Trailing 12M P/E Ratio: 10-Years

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Targets & Ratings

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Important Notice
The information contained in this report is provided “as is” and all representations, warranties, terms and conditions, oral
or written, express or implied (by common law, statute or otherwise), in relation to the information are hereby excluded anddisclaimed to the fullest extent permitted by law. In particular, FactSet, its affiliates and its suppliers disclaim implied
warranties of merchantability and fitness for a particular purpose and make no warranty of accuracy, completeness orreliability of the information. This report is for informational purposes and does not constitute a solicitation or an offer tobuy or sell any securities mentioned within it. The information in this report is not investment advice. FactSet, its affiliates
and its suppliers assume no liability for any consequence relating directly or indirectly to any action or inaction taken basedon the information contained in this report.
FactSet aggregates and redistributes estimates data and does not conduct any independent research. Nothing in ourservice constitutes investment advice or FactSet recommendations of any kind. Estimates data is provided for information
purposes only.
FactSet has no relationship with creators of estimates that may reasonably be expected to impair its objective presentationof such estimate or recommendation. FactSet redistributes estimates as promptly as reasonably practicable from research
providers.

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