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

[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

[winston]

Winding down

More than 90% of the S&P 500 companies have reported Q2 earnings, and the tally so far shows year-over-year earnings growth of 10.8%, according to FactSet. That’s the best performance since Q4 2021.

Revenue grew 5.2%, about in line with the 10-year average of 5.1%.

With earnings season winding down, eyes shift more toward Q3.

For now, estimates suggest earnings and revenue will climb 5.4% and 4.9%, respectively, this quarter.

Source: The Street

[behappyalways]

It hasn't been a particularly good earnings report period for future growth expectations - with earnings downgrades outpacing upgrades since the season kicked off.
https://x.com/BobEUnlimited/status/1824494581171491274

[behappyalways]

A big difference between the Capex / R&D Spend of Mag 7 vs the rest of the market.
https://x.com/AyeshaTariq/status/1836348718200623219

[behappyalways]

U.S. corporate profits rose to a new all-time high in the second quarter
https://x.com/KevRGordon/status/1839285043270689152

[winston]

October 4, 2024

• Earnings Growth: For Q3 2024, the estimated (year-over-year) earnings growth rate for the S&P 500 is 4.2%. If 4.2% is the actual growth rate for the quarter, it will mark the 5th straight quarter of year-over-year earnings growth for the index.

• Earnings Revisions: On June 30, the estimated (year-over-year) earnings growth rate for the S&P 500 for Q3 2024 was 7.8%. Nine sectors are expected to report lower earnings today (compared to June 30) due to downward revisions to EPS estimates.

• Earnings Guidance: For Q3 2024, 60 S&P 500 companies have issued negative EPS guidance and 50 S&P 500 companies have issued positive EPS guidance.

• Valuation: The forward 12-month P/E ratio for the S&P 500 is 21.4. This P/E ratio is above the 5-year average (19.5) and above the 10-year average (18.0).

• Earnings Scorecard: For Q3 2024 (with 21 S&P 500 companies reporting actual results), 16 S&P 500 companies have reported a positive EPS surprise and 14 S&P 500 companies has reported a positive revenue surprise.

Source: Factset

https://advantage.factset.com/hubfs/Web ... 100424.pdf

[winston]

Did analysts lower EPS estimates more than normal for S&P 500 companies for the third quarter?

The answer is yes. During the third quarter, analysts lowered EPS estimates in aggregate by a larger margin compared to recent averages.

The Q3 bottom-up EPS estimate (which is an aggregation of the median EPS estimates for Q3 for all the companies in the index) declined by 3.9% (to $60.72 from $63.20) from June 30 to September 30.

The actual earnings growth rate has exceeded the estimated earnings growth rate at the end of the quarter in 37 of the past 40 quarters for the S&P 500. The only exceptions were Q1 2020, Q3 2022, and Q4 2022…

Source: Investor Place