From Nasdaq: 2024-05-31 16:46:00

Costco and AutoZone recently released their quarterly earnings reports for the fiscal quarters ending in May, which mark the beginning of the 2024 Q2 earnings season. The trend for corporate profitability has been positive, with expectations for an 8.7% earnings growth and 4.6% increase in revenues for the S&P 500 index in Q2.

The Federal Reserve’s policy change from tightening to easing has contributed to a more positive outlook for economic and corporate earnings risks. The Q2 earnings season is expected to continue the trend of improving profitability, with projections showing growth in net margins across various sectors including Energy, Tech, Transportation, Utilities, and Autos.

The energy sector has been a major contributor to the positive revisions trend for Q2 earnings, along with sectors such as Tech, Transportation, Utilities, and Autos. Net margins are expected to improve in Q2 compared to the previous year for many sectors, with notable gains in Tech, Medical, Finance, and Consumer Discretionary, while facing pressure in sectors like Basic Materials and Autos.

Total earnings for the Tech sector in 2024 Q2 are expected to increase by 14.4% with higher revenues and a net margin expansion. Overall, the S&P 500 index is projected to see a 9% increase in total earnings and a 1.7% growth in revenue for the year 2024. The positive trend in earnings growth and net margins is expected to continue in the Technology sector.

The Q1 earnings season for the S&P 500 index showed a 7% increase in earnings and a 4.3% growth in revenues for the 490 companies that reported their results. The majority of companies beat EPS and revenue estimates. Looking ahead, the Q2 earnings season is expected to maintain the positive growth trajectory seen in Q1, continuing the trend of improving profitability in various sectors.



Read more at Nasdaq:: Previewing the 2024 Q2 Earnings Season