Let’s talk about earnings!
S&P 500 Index 2nd Quarter Earnings Summary
- Heading into the second quarter earnings season, many were concerned about companies meeting top and bottom-line expectations. The data has been mostly positive with aggregated sales improving by 2.97% over expectations and earnings improving by 4.40% over expectations.
- Companies are beating sales estimates by a wider margin, but earnings by a lower margin than their five-year averages of 1.8% and 8.8%, respectively.
- This may be evidence that inflation and a slowing economy may not be impacting businesses as much as feared. Coinciding with the earnings releases, the S&P 500 Total Return Index was up 11.33% from June 30, 2022, to August 11, 2022.
- The data isn’t necessarily an outlier, as companies tend to routinely beat guidance. However, given the looming economic uncertainty, this period was better than expected.
Source: Helios Quantitative Research, Bloomberg, FactSet
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