With 30% of the S&P 500 reporting for Q4, here is the scorecard for earnings vs estimates.

For Q4 2022 (with 29% of S&P 500 companies reporting actual results), 69% of S&P 500
companies have reported a positive EPS surprise and 60% of S&P 500 companies have reported a positive
revenue surprise.
Earnings Growth: For Q4 2022, the blended earnings (definition below) decline for the S&P 500 is -5.0%. If -5.0% is the actual
decline for the quarter, it will mark the first time the index has reported a year-over-year decline in earnings since
Q3 2020 (-5.7%).
Earnings Revisions: On December 31, the estimated earnings decline for Q4 2022 was -3.2%. Seven sectors are
reporting lower earnings today (compared to December 31) due to downward revisions to EPS estimates and
negative EPS surprises.
Earnings Guidance: For Q1 2023, 17 S&P 500 companies have issued negative EPS guidance and 2 S&P 500
companies have issued positive EPS guidance.
Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.8. This P/E ratio is below the 5-year average
(18.5) but above the 10-year average (17.2)
The blended (combines actual results for companies that have reported and estimated results for companies that have yet
to report) earnings decline for the S&P 500 for Q4 2022 is -5.0%. For companies that generate more than 50% of sales
inside the U.S., the blended earnings decline is -3.5%. For companies that generate more than 50% of sales outside the
U.S., the blended earnings decline is -7.3%.

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