Earnings (General News) 03 (Jan 24 - Dec 27)

[winston]

Yardeni Research forecasts an 11% rise in S&P 500 earnings this year to $250

That means that the popular index, at around 5,130 today, trades at 20.5 times 12-month forward earnings.

High? Yes, but not egregiously high.

Yardeni sees S&P 500 earnings adding another 10% in 2025 to $275.

Source: IBD

[behappyalways]

The current earnings yield on the S&P500 is 3.45% which is below bond yields, and this just means there’s more catching up to do.
https://twitter.com/AyeshaTariq/status/ ... 3335027753

[winston]

US: 1Q Earnings

Analysts polled by FactSet expect first-quarter earnings of S&P 500 companies to grow 3.1% from the prior year.

That would mark the third straight quarter of earnings growth. Full-year profits are expected to swell 10.7%.

Earnings season kicks off next week with Delta Air Lines, Citigroup, BlackRock, JPMorgan Chase and Wells Fargo.


Source: CNN Business

[behappyalways]

It's All About Mag 7 Earnings: Without Them S&P Profit Growth Is Negative
https://www.zerohedge.com/markets/its-a ... h-negative

[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