Home / Business and Economy / S&P 500 Earnings Soar Over 23% in Q2; Banks Kick Off Reporting
S&P 500 Earnings Soar Over 23% in Q2; Banks Kick Off Reporting
3 Jul
Summary
- S&P 500 Q2 earnings are projected to increase by 23.9% year-over-year.
- Company estimates for current and upcoming quarters are steadily rising.
- Major banks like JPMorgan and Bank of America begin Q2 earnings season.
The current earnings season indicates a strong and broad-based performance for companies, with expectations of significant year-over-year growth.
For the second quarter, the S&P 500 index is anticipated to achieve earnings growth of 23.9%, accompanied by a 11.7% increase in revenues. This outlook is buoyed by a positive trend in estimate revisions, with figures for both the current and upcoming quarters trending upward. Specifically, Q2 earnings estimates have seen a notable increase since April, rising from an anticipated 18% to the current 23.9% growth rate.
As the second quarter reporting cycle commences, major banks are taking center stage. JPMorgan, Bank of America, Citigroup, and Wells Fargo are scheduled to release their June-quarter results starting July 14th. These financial institutions, known for their cyclical nature, are expected to benefit from a perceived reduction in economic risk.
While the overall revisions trend is positive, with upward adjustments for most of these banks, Wells Fargo's Q2 estimates have seen a slight decrease. JPMorgan, for instance, is projected to earn $5.49 per share on revenues of $48.7 billion, reflecting year-over-year increases of 10.7% and 8.5%, respectively. The consensus EPS estimate for JPMorgan has seen modest increases over the past three months.
