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 S&P 500 for Q4 2023 is 3.2%. If 3.2% is the actual growth rate for the quarter, it will mark the second consecutive quarter that the index has reported year-over-year growth in earnings. Given the growth in earnings, what is the S&P 500 reporting for revenue growth?
The blended (year-over-year) revenue growth rate for the S&P 500 for Q4 2023 is 4.0%. This growth rate is below the 5-year average revenue growth rate of 6.9% and below the 10-year average revenue growth rate of 5.0%.
However, if 4.0% is the actual revenue growth rate for the quarter, it will mark the 13th consecutive quarter of revenue growth for the index. This would mark the second-longest period of consecutive quarters of (year-over-year) revenue growth for the S&P 500 since FactSet began tracking this metric in 2008. The current record for the S&P 500 since 2008 is 15 straight quarters of revenue growth, which occurred from Q3 2016 though Q1 2020.
It should be noted that analysts are currently projecting (year-over-year) revenue growth for all four quarters of 2024. For Q1 2024 through Q4 2024, the current estimates for revenue growth are 3.5%, 4.6%, 5.0%, and 5.7%, respectively. Assuming these estimates hold up, the index is on pace to break the current record (since 2008) for consecutive quarters of revenue growth in Q3 2024.
At the sector level for Q4 2023, eight sectors are reporting year-over-year growth in revenues, led by the Real Estate and Communication Services sectors. On the other hand, three sectors are reporting a year-over-year decline in revenues, led by the Energy and Materials sectors.
The FactSet Earnings Insight report will not be published on February 23. The next edition of the report will be published on March 1.
This blog post is for informational purposes only. The information contained in this blog post is not legal, tax, or investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.
The blended (year-over-year) revenue growth rate for the S&P 500 for Q4 2023 is 4.0%. This growth rate is below the 5-year average revenue growth rate of 6.9% and below the 10-year average revenue growth rate of 5.0%.
Calculate the revenue growth rate by subtracting the previous period's revenue from the current period's revenue. Divide the result by the previous period's revenue and multiply by 100.
Smaller companies tend to have a high revenue growth percentage compared to others.
Earnings Growth: For Q1 2024, the blended (year-over-year) earnings growth rate for the S&P 500 is 5.9%. If 5.9% is the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reported by the index since Q1 2022 (9.4%).
Ideal business growth rates vary by the type of business and industry as well as the stage that the business is at in its development. In general, however, a healthy growth rate should be sustainable for the company. In most cases, an ideal growth rate will be around 15 and 25% annually.
S&P 500 1 Year Return is at 20.78%, compared to 27.86% last month and 0.91% last year. This is higher than the long term average of 6.75%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.
The average stock market return is about 10% per year, as measured by the S&P 500 index, but that 10% average rate is reduced by inflation. Investors can expect to lose purchasing power of 2% to 3% every year due to inflation.
This is a return on investment of 53,396.70%, or 10.26% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 4,950.27% cumulatively, or 6.29% per year.
Looking at the S&P 500 for the years 1993 to mid-2023, the average stock market return for the last 30 years is 9.90% (7.22% when adjusted for inflation). Some of this success can be attributed to the dot-com boom in the late 1990s (before the bust), which resulted in high return rates for five consecutive years.
S&P 500 5 Year Return is at 70.94%, compared to 85.38% last month and 57.45% last year. This is higher than the long term average of 45.28%. The S&P 500 5 Year Return is the investment return received for a 5 year period, excluding dividends, when holding the S&P 500 index.
Basic Info. S&P 500 1 Year Return is at 26.26%, compared to 20.78% last month and 1.15% last year. This is higher than the long term average of 6.81%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.
The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2023, had an annual compounded rate of return of 15.2%, including reinvestment of dividends.
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Insight/2024/02.2024/02.20.2024_Earnings%20Insight/01-s%26p-500-revenue-growth-5-year.png?width=672&height=384&name=01-s%26p-500-revenue-growth-5-year.png "S&P 500 Reporting Year-over-Year Revenue Growth for 13th Straight Quarter (1)")
Insight/2024/02.2024/02.20.2024_Earnings%20Insight/02-s%26p-500-sector-level-revenue-growth-q4-2023.png?width=672&height=384&name=02-s%26p-500-sector-level-revenue-growth-q4-2023.png "S&P 500 Reporting Year-over-Year Revenue Growth for 13th Straight Quarter (2)")
