The team over at FactSet consistently puts together some great data on the US economy and equities. The report below (link) outlines what we have seen in terms of Q2 earnings so far. While there is a lot of information it is all worth your time. The earnings were a mixed bag this quarter but the big takeaway for me was the impact that the struggling energy sector as well as the disappointing (compared to estimates) results from the utilities sector is having on the overall numbers. Here are some quick summary notes on the report…

• 69% have reported earnings above the mean estimate and 54% have reported sales above the mean estimate. This is the good news. However:
• Earnings Growth for Q2 2016 is -3.5%. Q2 may mark the first time we’ve seen five consecutive quarters of year-over-year earnings declines since Q3 2008 through Q3 2009.
• Earnings Revisions for Q2 2016 were -5.5%, but seven of the 10 S&P sectors have higher growth rates today (compared to June 30), due to upside earnings surprises, led by Infotech.
• Earnings Guidance for Q3 2016 so far has seen 53 companies issue negative EPS guidance compared with 26 companies issuing positive EPS guidance.
• The forward 12-month P/E ratio for the S&P 500 is 17.0, well above the five-year average (14.7) and 10-year average (14.3).
• As of today, the estimated earnings decline for the S&P 500 for Calendar Year 2016 is -0.3%.
• If CY 2016 earnings decline, it would be the first time with two consecutive years of earnings declines since CY 2008 (-25.4%) and CY 2009 (-8.0%).
• The energy sector is projected to report a YOY earnings decline of a mere -72%

Click here to read the full report from FactSet – Earnings Insight Q2 2016