Earnings (General News) 02 (Oct 16 - Dec 25)

[winston]

Pretty darn good

With 80% of the S&P 500 having reported first-quarter results, earnings are up 5% from one year ago. If that growth persists, it will be the best year-over-year growth in profit since second-quarter 2022.

Given the S&P 500’s forward P/E multiple is 20 (historically high), earnings growth needs to do a lot of heavy lifting to keep the valuation in check.

FactSet says Wall Street is currently modeling for growth of 9.6% in Q2.

Source: The Street

[behappyalways]

So far, so good. Mag 7 increased margins by aggressively cutting costs. But eventually the margin expansion hits a wall as there's only so much that one can cut.
https://x.com/Mayhem4Markets/status/1789015288102678925


JP Morgan expects a broad-based earnings recovery in 2024, led by tech, consumer, and healthcare sectors.
https://x.com/Mayhem4Markets/status/1790410220914557351


Earnings growth for the $SPX excluding $NDX stocks would be flat to down.
https://x.com/AyeshaTariq/status/1789284321720926372

[behappyalways]

Companies mentioning AI on earnings calls
https://x.com/zerohedge/status/1791101742177767454

[winston]

Some 93% of the S&P 500 have reported quarterly results.

Overall, FactSet targets year-over-year earnings per share increased 5.7%, the highest since Q2 2022 when EPS increased 5.8%.

Despite the increase, the S&P 500 rally means we’ve made no progress on valuation.

The benchmark index’s forward price-to-earnings multiple is 20.7, well above the 10-year average of 17.8.

Source: The Street

[behappyalways]

Mentions of "low-income consumers" on Q1 company earnings calls at all time high
https://x.com/zerohedge/status/1794130270783742325

[behappyalways]

Foreign revenues make up about 28% of S&P 500 company sales
https://x.com/Mayhem4Markets/status/1804219339999945205

[winston]

2Q Earnings

Speaking of second-quarter earnings, analysts are quite optimistic.

FactSet’s data crunching shows that S&P 500 earnings are expected to climb 8.8% in Q2, led by commercial services (up 18.5%), health care (up 16.9%), and info technology (up 16.1%).

That would be the best growth since the climb of 9.4% in Q1 2022.

For perspective, S&P 500 earnings growth was 5.9% in Q1 and just 1% in 2023.

Source: The Street

[winston]

2Q Earnings

For Q2 2024, the estimated (year-over-year) earnings growth rate for the S&P 500 is 8.8%.

If 8.8% 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%).

In terms of estimate revisions for companies in the S&P 500, analysts in aggregate have lowered earnings estimates slightly for Q2 2024.

As a result, the estimated (year-over-year) earnings growth rate for Q2 2024 is slightly below the estimate at the start of the quarter.

Source: Factset

[behappyalways]

Earnings Bar Lowered As Q2 Reports Begin
https://www.zerohedge.com/markets/earni ... orts-begin

[behappyalways]

Earnings Call Mentions Of "Consumer Downturn" Soar To Highest Level Since Financial Crisis
https://www.zerohedge.com/markets/earni ... ial-crisis