S&P 500 Q1 Earnings Down 25.9%
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According to preliminary figures released today by Standard & Poor’s Index Services, first quarter 2008 operating earnings for the S&P 500 declined 25.9% over the first quarter of 2007, marking the third consecutive quarter the index has reported declining earnings — an event not seen since the fourth quarter of 2001.
With 95% of the data in, first quarter operating earnings for the S&P 500 are preliminarily set at $16.59 per share, compared to $22.39 for the first- quarter of 2007. For the third consecutive quarter, S&P 500 As Reported earnings also posted a decline, falling 27.1% to $15.56 per share from the $21.33 per share posted in Q1 2007.
“The shift in earnings continues, with Energy contributing 23.2% of S&P 500 operating earnings during the first quarter, up from 13.6% a year ago,” says Howard Silverblatt, Senior Index Analyst at Standard & Poor’s. “Conversely, Financials have now become a negative contributor after accounting for 29.7% of operating earnings this time last year.”
When compared with Q1 of 2007, notable changes in earnings are as follows
- S&P 500 Financials earnings are down 107.87%
- Energy earnings are up 23.83%
In terms of aggregate dollars, operating earnings for the first quarter were set at $144.4 billion (versus $200.2 billion for Q1 2007) and As Reported earnings were set at $135.4 billion (versus $190.7 billion in Q1 2007).
“While the negative news surrounding Financials received all of the headlines during the first quarter, 53% of the non-Financial issues within the S&P 500 recorded double-digit earnings gains. Those same issues have posted an average price gain of 11.8% since the end of the first quarter,” notes Silverblatt.
